Learn how to get a liquor license in Minnesota, and request a quote today from Single Source Insurance for the bond you need.
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Who Needs a Liquor License?
The Alcohol and Tobacco Control Division of the Missouri Department of Public Safety issues five main classes of retail liquor licenses in Missouri:
- By Drink
- Package
- Temporary Retail
- Other Retail
- Secondary Retail
There are multiple license types within each of these categories, as well as licenses for wholesalers, manufacturers, solicitors, and wine direct shippers. Our primary concern here is with retail liquor licenses.
What Does the Licensing Process Involve?
The licensing process varies somewhat depending on the type of license needed. The licensing section of the Missouri ATC website lists all of the necessary documents, fees, and other requirements for obtaining each type of liquor license (both retail and others). In most cases, one of these requirements is the purchase of a Missouri liquor surety bond.
Why is a Surety Bond Required?
The specific bond you�ll need in order to get a retail liquor license in Missouri is the Intoxicating Liquor, Wine, and 5% Beer Tax corporate surety bond. The bond is your guarantee to abide by the laws and regulations governing the payment of sales taxes to the state.
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Every surety bond agreement is a legally binding contract among three parties, which are the obligee, the principal, and the surety. In this case, the obligee is ATC, which requires the bond as protection against financial loss resulting from a licensee�s failure to remit sales taxes. The licensee is the principal who is required to purchase the bond, and the surety is the company that underwrites and issues the bond.
The obligee determines the required bond amount on a case-by-case basis, with a minimum of $1,000 and a maximum of $10,000, but never more than twice the principal�s monthly sales tax liability. This is the bond�s penal amount, which is the most that will be paid on a valid claim against the bond.
The principal has sole financial responsibility for paying claims, but it�s often the surety that pays the claim initially. This ensures that claims are paid promptly even if the principal needs a little time to gather the necessary funds. But an advance payment made by the surety on behalf of the principal doesn�t let the principal off the hook. The principal is legally obligated to reimburse the surety.
What Does It Cost?
The annual premium for a Missouri liquor license bond is a small percentage of the required bond amount. While the obligee determines the required bond amount, it�s the surety that sets the premium rate, also on a case-by-case basis. The primary factors the surety considers are the principal�s personal credit score and financial stability. If your credit and finances are good, you�ll probably be assigned a premium rate in the range of 1% to 3%. If you have poor credit, your premium rate will be substantially higher.
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We�re here to help you get the best possible rate on the surety bond you need to obtain a Missouri liquor license. Request an online quote or give us a call today!