Alcohol Liquor Wine Bonds

What is an alcohol bond?

Alcohol bonds (also known as liquor license bonds, liquor tax bonds, and liquor tax bonds) are legally enforceable contracts between three parties: licensed alcohol retailers, a surety firm, and the local government agency responsible for regulating alcohol distribution.

The Obligee is the government entity that establishes the rules that must be followed by the licensed alcohol supplier (the Principal). The bond that ensures the seller's performance is issued by the surety (also known as a bonding company).

What is the purpose of an alcohol bond?

Most states require alcohol bonds. The bonds protect the regulating agency from nonpayment of state-mandated taxes and levies for selling or storing alcoholic beverages. When a surety firm issues a bond, it guarantees that the government agency will be paid if the licensed distributor fails to pay any applicable taxes or fees.

If a licensed alcohol seller fails to pay the government's taxes or fees, the surety will pay the amount owed, up to the bond amount. The alcoholic beverage supplier is liable for the losses, and he or she is compelled by law to reimburse the surety firm for any damages paid under the bond. Certain alcohol bonds also need adherence to local Alcoholic Beverage Commission rules (often referred to as "conduct bonds").

What is the cost of an alcohol bond?

The cost of an alcohol surety bond is determined by the total bond amount and the premium rate. The required bond amount is determined by the government agency, and is usually based on the company's gross receipts or total volume of alcohol sold. Your premium rate, which is a percentage of the total bond amount, is determined by the surety firm.

Alcohol bonds often have premium rates that vary from 1% to 5% of the overall bond amount. The surety firm assesses your credit score and financial soundness during the application process. Good credit applicants normally get the greatest rates, but you can still get an alcohol bond even if you have terrible credit.

Alcohol bonds are available in Alabama for as little as $100 in premiums.

California alcohol bonds are available for as little as $100 in premiums.

In New York, alcohol bonds can be purchased for as little as $75.

The most prevalent alcohol liquor wine bonds

• Alabama Alcohol, Liquor, Wine Bonds

• California Alcohol Liquor Wine Bonds

• Illinois Alcohol, Liquor, Wine Bonds

• Indiana Alcohol, Liquor, Wine Bonds

• Maine Alcohol Liquor Wine Bonds

• Minnesota Alcohol Liquor Wine Bonds

• Missouri Alcohol, Liquor, Wine Bonds

• Tennessee Alcohol, Liquor, Wine Bonds

Other kinds of Alcohol Liquor Wine Bonds

• Alabama Alcohol Liquor Wine Bonds

• California Alcohol Liquor Wine Bonds

• Florida Alcohol Liquor Wine Bonds

• Georgia Alcohol Liquor Wine Bonds

• Idaho Alcohol Liquor Wine Bonds

• Illinois Alcohol Liquor Wine Bonds

• Indiana Alcohol Liquor Wine Bonds

• Iowa Alcohol Liquor Wine Bonds

• Kentucky Alcohol Liquor Wine Bonds

• Maine Alcohol Liquor Wine Bonds

• Maryland Alcohol Liquor Wine Bonds

• Massachusetts Alcohol Liquor Wine Bonds

• Michigan Alcohol Liquor Wine Bonds

• Minnesota Alcohol Liquor Wine Bonds

• Mississippi Alcohol Liquor Wine Bonds

• Missouri Alcohol Liquor Wine Bonds

• Nebraska Alcohol Liquor Wine Bonds

• New York Alcohol Liquor Wine Bonds

• North Carolina Alcohol Liquor Wine Bonds

• Tennessee Alcohol Liquor Wine Bonds

• US Alcohol Liquor Wine Bonds

• Utah Alcohol Liquor Wine Bonds

• West Virginia Alcohol Liquor Wine Bonds

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