FOR ALL YOUR SURETY BOND NEEDS.
These surety bonds are general for all states.
Learn more about alcohol tax bonds, and apply today. Single Source Insurance offers surety bonds nationwide through a convenient online application system.
Alcohol bonds are also called liquor license bonds, alcohol tax bonds, alcohol beverage control bonds, malt beverage license bonds, on-premise beer bonds, brewer�s bonds, wine bonds, etc. The names and requirements for obtaining such bonds differ from state to state. Their primary purpose is to ensure that businesses manufacturing, selling, warehousing, transporting, or distributing alcoholic beverages do so in compliance with state law, including paying required taxes and fees. Alcohol bonds are a form of�license and permit surety bond.
Requirements vary from state to state. In general, any business applying for or renewing a liquor license must also obtain and periodically renew an alcohol bond. Be aware that the federal government, specifically the Alcohol and Tobacco Tax and Trade Bureau (TTB), requires brewers, distillers, and similar businesses that owed more than $50,000 in excise taxes for the previous year to obtain a federal bond.
An alcohol tax bond guarantees that the business (the principal) will operate in accordance with the law and will pay any liquor taxes or fees owed to the authority (the obligee) that granted the liquor license.
The bond also guarantees the payment of any penalties assessed for legal violations, such as selling alcohol to a minor. If the principal does not pay the necessary taxes or penalties for legal violations, the surety company will pay the obligee and then seek reimbursement from the principal.
The obligee sets the amount of the liquor bond. While it varies from state to state, that bond amount is often in the range of $2,000 – $10,000.
To determine the cost of the bond, the full amount of the bond is multiplied by the premium rate established for the particular applicant by the surety company. That premium rate is based on the applicant�s personal and business credit, financial situation, and assets. It typically ranges from as little as 1% for applicants with the best credit to 15% for those with the poorest credit.
Start the bonding process today by submitting a convenient online application. We can offer turnaround times of 24 hours or less.
