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Who Needs a Florida Liquor License?

Florida’s Division of Alcoholic Beverages and Tobacco is part of the Florida Department of Business and Professional Regulation. It issues liquor licenses in two broad categories: vendor licenses and manufacturing/distribution licenses. There are a number of license types within each of these categories.

What Does the Licensing Process Involve?

Florida limits the number of new liquor licenses issued each year and distributes them through a lottery system. There is a set number of licenses per county, which increases only when the county�s population grows�one new license for every additional 7,500 residents.

If you don�t win a quota license in the lottery, the only way to get one is to buy an existing license, either from the state or from a current licensee.

To submit a license application, you�ll need to use the Department�s licensing portal.  The major steps in the process include:

1.������ Determine which type of license is needed.

2.������ Arrange to get fingerprinted.

3.������ Provide Social Security number or Federal Employer�s Identification number and all required documentation.

4.������ For a manufacturer or distributor license, you�ll need to obtain a surety bond.

5.������ Submit completed application and documents and pay the license fee.

Why Is a Surety Bond Required?

When you purchase a surety bond, you are guaranteeing that you will act in accordance with all applicable laws and regulations, as spelled out in the terms of the surety bond agreement. Any violation that ends up costing someone else money gives the injured party the right to file a claim against the bond and be compensated for that loss.

In purchasing a Florida liquor license bond, alcohol manufacturers and distributors pledge that they will pay all required taxes to the state of Florida. Thus the bond protects the state, not the owner of the liquor license.

The Florida liquor license bond is in addition to any federal alcohol tax bond that may be required.

How Does It Work?

As is the case with all surety bonds, a Florida liquor license bond brings together three different parties in a legally binding contract:

-������ Florida’s Division of Alcoholic Beverages and Tobacco is the �obligee� requiring the bond

-������ The license owner is the �principal� purchasing the bond

-������ The surety bond company underwriting and issuing the bond is simply the �surety�

If you fail to make the necessary tax payments, you will be in violation of the surety bond, and the obligee is entitled to file a claim against the bond and be compensated. It�s common practice for the surety to go ahead and pay a claim on behalf of the principal and then be reimbursed by the principal.

When you buy a Florida liquor license bond, you take on the legal responsibility for paying claims. An indemnification clause in the surety bond agreement makes it very clear that the surety has no responsibility for claims payment.

What Does It Cost?

There are two variables that are used to calculate the annual premium for a Florida liquor license surety bond:

-������ The required bond amount established by the obligee

-������ The premium rate assigned to the principal by the surety

The surety�s primary consideration in setting the premium rate for a given bond applicant is the individual�s personal credit score.

If your credit is very good, you will pay the standard market rate of 1.25% to 3%. If your credit score is poor, you�ll pay a significantly higher premium rate.

Get Bonded Today

Contact us today about the Florida liquor license bond you need, and one of our experienced surety bond professionals will gladly help you get it.

Who Needs an Arizona Liquor License?

Anyone planning to operate an alcohol-related business in Arizona needs to obtain an Arizona liquor license. Though most people think of liquor licenses as being something that�s only needed for selling alcoholic beverages for on-site or off-site consumption, manufacturers and distributors also must be licensed by the state.

What Does the Licensing Process Involve?

If you want to get a liquor license in Arizona, you can purchase one directly from Alcohol and Beverage Control (ABC) or buy an existing license from its current owner.

Arizona maintains a quota system for liquor licenses. The number of licenses to sell alcohol (for on-premises or off-premises consumption) available in a particular area is determined by the area�s population. Additional licenses only become available when the population increases by a certain amount.

Although the specifics vary by license type, this is the general outline of the licensing process:

1.������ Determine which type of license is needed and whether you can get it from the state or from someone selling an existing license.

2.������ Obtain all required documentation. If purchasing an existing license, a signed agreement between the seller and buyer is required.

3.������ Purchase a Federal Alcohol Tax (TTB) surety bond if it’s required.

4.������ Complete the appropriate application, pay the license fee, and submit with all required documentation to the Department of Liquor License Control (DLLC).

5.������ Undergo fingerprinting and investigation by the DLLC.

If all goes well, in two or three months, you�ll receive your license in the mail.

Why is a Surety Bond Required?

Sellers, manufacturers, and distributors of alcohol in Arizona may need to purchase a federal TTB bond. This is a surety bond required by the U.S. Department of the Treasury, specifically by the Alcohol and Tobacco Tax and Trade Bureau (the �obligee� in the surety bond agreement). The required bond amount (the �penal sum�) differs by license type and other factors.

A TTB bond is the licensee�s guarantee to comply with certain statutes and pay all taxes imposed by the federal government on manufacturers, distributors, and sellers of alcoholic beverages. The terms and conditions of a TTB bond are very specific as to the penalties for violations.

How Does It Work?

Violating the terms and conditions of a TTB bond can result in the federal government seeking restitution from the principal. The surety bond company (known simply as the �surety�) will attempt to negotiate a settlement, but if that fails, they will usually go ahead and pay the claim.

That payment is, in effect, a short-term loan made by the surety to the principal to give the principal a little time to gather the necessary funds.� It is not a gift. The surety has no legal responsibility to pay claims. The principal, however, is legally obligated for claims payment and must therefore repay the surety.

What Does It Cost?

The annual premium for a TTB bond is determined by multiplying the required bond amount by the premium rate that the surety bond company assigns to the principal. The key factor in setting the premium rate is the principal�s personal credit score. With a great credit score, the premium rate could be as low as 1%, but for those with poor credit, it could be as high as 15%.

Get Bonded Today

Reach out to us today to discuss the bond you may need in order to obtain or renew your liquor license.

Who Needs an Indiana Liquor License?

The state of Indiana Alcohol and Tobacco Commission regulates the production, transportation, and sale of alcohol, as well as its possession and use. However, permits for companies and individuals involved in the alcoholic beverage industry are issued at the county level through local beverage and alcohol commissions.

To determine the specific type of permit you may need, check out the list on the state Commissions Licenses page. There are dozens of different permit types that are distinguished in terms of the permittee�s role (e.g., alcohol production, retail or wholesale sales, transportation, etc.), venue (grocery store, restaurant, resort hotel, stadium, etc.), and other factors.

Bear in mind that only a certain number of permits are available in each county.

What Are the Licensing Requirements?

Each county commission has its own established requirements and process for issuing alcoholic beverage permits. Procedures vary depending on whether a new permit is available or you�re purchasing an existing permit from its current owner.

One common requirement is to submit a copy of a lease or proof of ownership of the premises for which the permit is needed. Another is property tax clearance from the county.

Obtaining a permit to operate as a brewer, distiller, vintner, or liquor wholesaler requires the purchase of a license and permit surety bond. Getting a permit to sell alcohol as a retailer involves collecting sales tax and requires the purchase of an alcohol sales tax surety bond.

Why is a Surety Bond Required?

A surety bond is a guarantee that the purchase (known as the bond�s �principal�) will operate in accordance with all applicable laws, statutes, and industry standards as identified in the surety bond agreement. The party requiring the bond (the bond�s �obligee�) establishes what those are and sets the required bond amount.

A license and permit bond is intended to ensure that the principal conducts business lawfully and ethically. It is the principal�s guarantee to compensate any party suffering a financial loss as a result of the principal�s violation of the surety bond agreement.

A sales tax bond ensures that the principal remits to the state the sales taxes collected from customers. The principal�s failure to remit tax payments as required entitles the obligee to recoup the funds by filing a claim against the surety bond.

How Does It Work?

Anyone financially harmed by the principal�s failure to comply with the terms of a surety bond agreement has the right to file a claim against the bond and be compensated for their loss.

Upon receipt of a claim, the surety bond company (referred to as the �surety�) will make sure it is valid and then try to negotiate a settlement. If no mutually agreeable settlement is reached, the surety typically goes ahead and pays the claim.

However, the principal is legally obligated to pay all claims and must reimburse the surety for any claims paid in advance. Essentially, the surety bond functions like a line of credit for the principal. It gives the principal time to gather the necessary funds while ensuring timely payment of the claim.

What Does It Cost?

The annual premium for a surety bond is calculated by multiplying the required bond amount by the premium rate assigned to the principal by the surety bond company. The surety company sets the premium rate based largely on the principal�s personal credit score. The better the principal�s credit, the lower the premium rate will be.

Get Bonded Today

Contact us today to get the surety bond you need to obtain an Indiana liquor license at a competitive rate.

Who Needs a California Liquor License?

California�s Department of Alcoholic Beverage Control issues nearly a hundred different types of liquor licenses covering just about every aspect of the industry, from manufacturing to shipping, storage, distribution, and wholesale and retail sales.

What Are the Licensing Requirements?

Whether you�re applying for a new license or a transfer of a license from a current licensee, the process begins at the nearest ABC district office. The process is intended to be initiated in person. If a transfer is involved, both the current licensee and the transferee should be present. You�ll be advised as to what forms you must complete, what fees you will need to pay, and any other requirements you must meet.

Depending on the municipality your business is located in, you may also need to obtain a local business license or permit.

Before opening a business involving alcoholic beverages, you�ll need to check with the U.S. Treasury Department�s nearest Alcohol and Tobacco Tax and Trade Bureau and see if you need a federal permit or whether an Occupational Tax stamp is required.

You�ll also need to register your business with the State Board of Equalization, because you�ll be responsible for collecting sales tax from customers and remitting it to the state through the California Department of Tax and Fee Administration�s Taxpayer Online Services Portal.

Why is a Surety Bond Required?

Requiring businesses in the alcoholic beverage industry to purchase a surety bond is the primary way that California prevents alcohol tax fraud and nonpayment of sales taxes owed to the state. By purchasing the required bond, licensees guarantee that they will make the necessary tax payments on time and in full.

How Does It Work?

An alcohol tax surety bond agreement is a legally binding contract among these three parties:

-������ The state of California (the �obligee� requiring the bond)

-������ The licensee/business owner (the �principal� purchasing the bond)

-������ The surety bond company (the �surety� underwriting and issuing the bond)

If the principal violates the terms of the surety bond agreement by failing to make required tax payments, the obligee can file a claim against the bond and be compensated for financial damages. When a claim is filed, the surety will attempt to negotiate a quick settlement. If that�s unsuccessful, the surety will typically go ahead and pay the claim, even though legally paying claims is the principal�s responsibility.

The surety bond works like a line of credit for the principal. The surety�s advance payment gives the principal a little time to gather the necessary funds while ensuring timely payment of the claim. Ultimately, the principal is legally obligated to repay the surety in full for payments made on the principal�s behalf.

What Does It Cost?

The annual premium for any surety bond is a small percentage of the required bond amount. While the obligee establishes that bond amount, the surety sets the premium rate based primarily on the principal�s personal credit score. The higher the principal�s credit score, the lower the premium rate�potentially as low as 1% to 3% for someone with excellent credit.

Get Bonded Today

Contact us to discuss your bonding needs to obtain a California liquor license.

Who Needs a Travel Agent License?

Only 13 states require licensing, registration, or bonding of travel agents, technically known as �sellers of travel.�

What Are the Licensing Requirements?

The licensing or registration requirements and procedures differ depending on which of those states you want to operate in as a travel agent.

In general, you can become a travel agent with no formal education beyond high school, though some people pursuing a career in travel sales complete a certificate program. Others earn an associate or bachelor degree in tourism or some aspect of the hospitality industry.

Some states require travel agencies to register as sellers of travel in addition to registering as a business. They may even require some form of financial security, such as a deposit into a special fund or the purchase of a surety bond.

Why is a Surety Bond Involved?

Travel agencies often receive deposits from clients that they then turn over to tour operators, hotels, and other travel industry operators. The states that require a security deposit or surety bond do so because of the potential for clients to suffer a financial loss due to a travel agent�s unethical or unlawful business practices.� The bond ensures that these clients are compensated for their loss.

Even in states that don�t impose a bonding requirement, many travel agents choose to purchase a type of surety bond known as a fidelity bond for their own protection. A fidelity bond will protect you against being held liable for money lost through theft, fraud, or other dishonest act by an employee, and it will compensate the injured party for their loss.

Advertising the fact that you chose to get bonded can be a very effective marketing strategy. People will see it as a demonstration of your commitment to running an honest and ethical business with your clients� best interests at heart.

How Does It Work?

Most surety bonds protect the state or consumers, not the bonded individual. However, fidelity bonds are actually an insurance product that protects the insured�the travel agent.

Let�s say you buy a fidelity bond that provides blanket coverage for the dishonest acts of any of your employees. Subsequently, one of your employees absconds with a $2,000 cash deposit from a client. The client would have a valid claim against the bond, a claim that would be paid by the company that issued the bond.

What Does It Cost?

The annual premium you�ll pay for a fidelity bond depends largely on two key factors: the amount of coverage and the number of employees who will be covered.

If you�re buying a bond to meet a state requirement, the state dictates the dollar amount. But if you�re voluntarily purchasing a fidelity bond, you get to choose the amount of coverage. You also have the choice of covering only specific employees or buying blanket coverage for all of them.

Get Bonded Today

Whether you need to buy a bond to get licensed or are choosing to buy one, give us a call or request a quote online today.

Who Needs a Florida Telemarketing License?

Most businesses and individuals engaged in commercial sales via telephone need to be licensed by the Florida Department of Agriculture and Consumer Services, but there are some exceptions. The types of businesses that are not required under the Florida Telemarketing Act to be licensed are identified in Section 501.604 of the Act.

Both telemarketing businesses and the salespeople working for them must obtain a Florida Telephone Seller license.

What Are the Licensing Requirements?

Both business applications and salesperson applications can be submitted online through the Department’s website, which provides all required forms and a checklist of the tasks that must be accomplished. These include, among other requirements, providing sample telemarketing scripts and sales materials and purchasing a $50,000 telemarketer surety bond.

Why Is a Surety Bond Required?

The purpose of the surety bond is to ensure compliance with relevant sections of the Florida Telemarketing Act and other applicable laws and regulations. The bond also ensures that funds will be available to compensate those with a valid claim for damages resulting from the telemarketer�s unlawful or unethical business conduct.

How Does It Work?

There are three parties to a telemarketer surety bond agreement, which is a legally binding contract:

-������ The �obligee� requiring the bond (the Department of Agriculture and Consumer Services)

-������ The �principal� purchasing the bond (the telemarketing business or salesperson)

-������ The �surety� underwriting and issuing the bond (the surety bond company)

When a claim is filed against a telemarketer bond, the surety company that issued the bond will first investigate to make sure that it is valid. If it is, the surety company will try to work out a settlement with the claimant. If that�s not successful, the principal will be responsible for paying the claim.

However, it�s common practice for the surety to step up and pay a claim on behalf of the principal, essentially advancing funds to the principal. The legal obligation for paying claims belongs to the principal alone, who must reimburse the surety for any claims paid by the surety.

What Does It Cost?

The principal will pay an annual premium for a telemarketer surety bond that is only a small percentage of the required $50,000 bond amount. The surety�s primary consideration in assigning a premium rate to is the principal�s personal credit score.

There is an inverse relationship between a principal�s credit score and the premium rate�the higher the credit score, the lower the premium rate, and vice versa. A high credit score earns a premium rate somewhere between 1% and 4%, or $500 to $2,000. Those with credit challenges should still be able to get bonded, but will pay a higher premium rate.

Get Bonded Today

Give us a call or request a quote online for the surety bond you will need for your telemarketing business or as an individual telemarketer.