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.
Understanding the Liquor License Process in Florida: How It Works
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.