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.
Understanding How the Indiana Liquor License Process Works
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.