Who Needs a Georgia Liquor License?
If you plan to be involved in any aspect of the alcoholic beverage industry in Georgia, the question is not whether you will need a liquor license, but rather which license you will need. Buying, selling, and distributing alcohol all require different types of licenses. Plus, there are also different licenses for different types of alcoholic beverages.
What Does the Licensing Process Involve?
To sell alcohol legally in Georgia, you must have a local alcohol license, a Georgia alcohol license, and a Federal Basic permit. Once your local license application is approved, the Georgia Department of Revenue (DOR) will issue a state alcohol license without further investigation. DOR issues alcohol licenses to manufacturers, wholesale distributors, retailers, and special events sponsors.
The local license comes first. It is also the most expensive of the licenses you may need�it can cost a few thousand dollars compared to the $400 you�ll pay for your state license. When you request an application packet from the municipal government, you�ll find that it includes the form to apply for a state license from DOR.
Although the requirements for obtaining a liquor license in Georgia vary by jurisdiction, they still require you to complete a few key steps:
-������ Prove residence in the specific county or municipality
-������ Prove U.S. citizenship or permanent residency
-������ Complete fingerprinting and a background check
-������ Submit completed forms and required documentation
-������ Pay a fee
-������ In some cases, purchase an alcohol surety bond
Why Is a Surety Bond Required?
Many Georgia liquor licenses carry a requirement to purchase a tax liability surety bond. For example, Georgia alcohol retailers must purchase a $2,500 alcohol tax bond.
This type of bond ensures that the licensee will make all required tax payments to the state of Georgia. Some of these bonds also serve as performance bonds, which guarantee that the licensee will operate in a lawful and ethical manner.
How Does It Work?
Every Georgia alcohol surety bond is a legal contract among three parties:
-������ The Georgia Department of Revenue is the �obligee� requiring the bond
-������ The licensee is the �principal� purchasing the bond
-������ The surety bond company that underwrites and issues the bond is known as the �surety�
Failing to make the necessary tax payments is a violation of the terms of an alcohol tax bond and can result in claims being filed against the bond. The claims process enables people who suffer financial harm due to the unlawful or unethical actions of the principal to be compensated for their loss.
Generally, when a claim is received, the surety will conduct an investigation to make sure it is valid and then attempt to negotiate an amicable settlement. If negotiation attempts fail, the surety typically pays the claim and is then reimbursed by the principal.
The surety is simply extending short-term credit to the principal, who bears full legal responsibility for paying claims. The surety has no legal obligation to do so.
Understanding How Surety Bonds Work for Liquor Licenses in Georgia
If you need to purchase a surety bond in order to obtain a Georgia liquor license, you�ll pay an annual bond premium that is a small percentage of the required bond amount. While the obligee establishes the required bond amount, the surety determines what that percentage�the premium rate�will be for each license applicant.
The surety�s primary concern is the individual�s personal credit score, because it�s a good predictor of how easy or difficult it might be to get reimbursed by the principal for claims paid on the principal�s behalf.
With a great credit score, you could pay a rate as low as 1% to 3%. If you�re credit-challenged, your premium rate could be as high as 10% to 15%.
Get Bonded Today
Contact us today about the Georgia liquor license bond you need, and we�ll help you get it at a competitive rate.