It's illegal to operate a still without a license. You can home brew beer and ferment wine and champagne but not operate a still for tax reasons and safety issues and puritanical nonsense. Homemade whiskey is Moonshine.
I do not think that is legal since there are rules and regulation that govern whiskey production. You need the necessary legal documents to manufacture and produce alcohol such as an excise business license. It is illegal and you would get in trouble if you are caught. You can go to, http://abc.ky.gov/licensing/, to get more information on rules and regulations of alcohol production and manufacture.