What makes New Belgium's ownership structure different from other breweries

New Belgium Brewing, based in Fort Collins, Colorado, is structured as an employee-owned company rather than a traditional corporation with outside shareholders. This means the people who work there own pieces of the business, and that ownership structure affects how the company reports income, pays taxes, and distributes profits.

The company converted to employee ownership in 2000 and later became a benefit corporation, a legal designation that requires the company to consider the interests of employees, customers, and the community alongside shareholder returns. This is not the same as a nonprofit — New Belgium is a for-profit business that pays taxes — but the structure shapes how it operates and reports its financial activity.

If you work at New Belgium or own stock through their employee ownership plan, understanding how the company's tax structure works helps you make sense of your own tax documents and how your ownership stake is reported to the IRS.

Key Takeaways

  • New Belgium is an employee-owned, for-profit brewery that files corporate tax returns and pays federal and state income taxes like other businesses.
  • Employees who own shares receive ownership statements that report their stake in the company, which may affect their personal tax filings depending on the ownership structure.
  • As a benefit corporation, New Belgium's legal structure requires it to balance profit with social and environmental responsibility, but this does not change its tax filing obligations.
  • If you receive distributions or dividends from your employee ownership stake, those amounts are reported on tax documents you receive from the company or its plan administrator.

How employee ownership affects your personal taxes

If you own shares in New Belgium through an employee stock ownership plan (ESOP) or direct ownership, the company or the plan administrator will send you tax documents that report your stake and any income you received from it. The exact form depends on the structure of the ownership arrangement.

For most employee-owned companies, workers receive a Schedule K-1 (Form 1065) if the company is structured as a partnership or S-corporation, or a 1099 form if distributions are paid to you as an individual. New Belgium's specific structure determines which document you receive. You will need this document to file your own tax return, because the income from your ownership stake is taxable to you personally.

The key point: owning a piece of the company does not mean you avoid taxes on the income that ownership generates. You report it on your individual return just as you would report dividends from any other investment.

What New Belgium reports to the IRS as a for-profit business

New Belgium files a corporate tax return with the IRS each year, reporting the company's total income, expenses, and taxable profit. The specific form depends on how the company is legally structured — whether it is a C-corporation, S-corporation, or LLC — but the company must file and pay federal income tax on its profits.

In addition to federal taxes, New Belgium pays Colorado state income tax and local taxes in Fort Collins. The company also collects and remits federal excise tax on beer sold, which is a tax the federal government places on alcohol production. This excise tax is built into the price you pay for New Belgium beer at a store or bar.

As a benefit corporation, New Belgium is still required to file all the same tax forms as any other for-profit business. The benefit corporation designation affects how the company makes decisions and what it reports to shareholders about its social and environmental impact, but it does not change its tax filing requirements or exempt it from taxes.

Employee stock ownership plans and tax deferral

Many employee-owned companies use an ESOP structure, which is a may have access to retirement plan under the IRS tax code. An ESOP allows employees to build ownership stakes in the company over time, often without paying income tax on the value of shares as they are allocated to their accounts.

However, when you eventually receive distributions from an ESOP — either when you leave the company, retire, or at another time specified in the plan — those distributions are taxable income to you. The tax is deferred, not eliminated. You report the distribution on your tax return for the year you receive it.

If you have an ESOP account at New Belgium, the plan administrator will send you statements showing the value of your account and any distributions paid. Keep these documents for your tax records, because you will need them to report the income accurately.

How New Belgium's benefit corporation status affects financial reporting

A benefit corporation is required to file an annual report with the state of Colorado that describes the company's social and environmental performance. This report is separate from tax filings and is available to the public. It covers things like employee wages, environmental impact, and community involvement.

This public reporting requirement does not change how New Belgium files taxes or what it owes to the IRS. It is an additional transparency requirement that comes with the benefit corporation designation. The company still files all standard corporate tax forms and pays all applicable taxes.

If you are researching New Belgium's finances for investment or employment purposes, you can request or review the benefit corporation report to see how the company measures its impact beyond profit. This is different from the tax documents the company files with the IRS.

Excise tax on beer and how it affects pricing

The federal government taxes beer production at a rate that varies based on the volume produced. Breweries like New Belgium collect this tax and send it to the IRS. The tax is built into the wholesale price of beer, which means you pay it indirectly when you buy a New Belgium product at a store or bar.

Colorado also has a state excise tax on beer, and Fort Collins may have local taxes or fees that explore to brewery operations. These taxes are separate from the company's income tax and are based on the amount of beer produced, not on profit.

As a consumer, you do not file anything related to these taxes — the brewery handles all of it. But understanding that excise tax exists explains part of the price difference between beer and other beverages.

What to do if you receive tax documents from New Belgium

If you work at New Belgium and own shares, or if you receive distributions from an ownership stake, you will receive tax documents from the company or its plan administrator by January 31 of the year following the tax year. Common documents include a 1099-DIV (for dividends), 1099-MISC (for miscellaneous income), or Schedule K-1 (for partnership or S-corporation income).

Do not discard these documents. You need them to file your tax return accurately. If you do not receive a document you expect, contact the company's payroll or benefits department and ask for a copy. If you file your return without reporting income shown on a document the company sent to the IRS, the IRS will likely catch the discrepancy and send you a notice.

If you are unsure how to report the income on your return, a tax professional or the IRS website can walk you through the correct form and line number for your situation.

Frequently Asked Questions

Do I have to pay taxes on my employee ownership stake at New Belgium?

Yes. Any income your ownership generates — whether through distributions, dividends, or appreciation when you sell your stake — is taxable to you. The company may defer taxes on the value of shares as they are allocated to your account, but you pay taxes when you receive money or when you sell your shares.

What is the difference between New Belgium's benefit corporation status and being a nonprofit?

New Belgium is a for-profit company that pays taxes and generates profit for its owners. Benefit corporation status means the company is legally required to consider social and environmental impact in its decisions, but it still files corporate tax returns and pays all applicable taxes. A nonprofit, by contrast, is exempt from federal income tax and operates for a charitable purpose.

Where can I find New Belgium's annual benefit corporation report?

New Belgium files its benefit corporation report with the state of Colorado. You can contact the company directly or check the Colorado Secretary of State's office for public records. This report is separate from tax filings and describes the company's social and environmental performance.

If I buy New Belgium beer, am I paying the excise tax?

Yes, indirectly. The federal excise tax on beer is built into the wholesale price, which the retailer or bar passes on to you. You do not file anything or pay the tax directly — the brewery collects and remits it to the IRS.

What should I do if I do not receive a tax document from New Belgium?

Contact the company's payroll or benefits department and request a copy. Tax documents must be sent by January 31. If the company sent the document to the IRS but not to you, you still need it to file your return accurately. Keep a record of your request in case the IRS contacts you later.