Alcohol Tax Bonds
For any business that deals with alcohol, there’s a strong possibility that an Alcohol Tax Bond will be required. The alcohol seller or manufacturer is the principal and the obligee is a public entity. These type of bonds are required at the state and local level, usually by the Comptroller or Department of Revenue, in order to for alcohol sellers to maintain their licenses. The amount of the bond is determined by the public entity.
There are many different types of Alcohol Tax bonds. You may hear them referred to as any of the following:
- Liquor Bond
- Liquor License Bond
- Wine Bond
- Brewer’s Bond
- Alcohol Beverage Bond
There are some distinct differences between these various types of Alcohol bonds, but in general they all tend to work the same way. The principal supplies the bond which is a guarantee that their fees and taxes will be paid. The surety is a party to the financial guarantee and will step in if the principal is in default. As the obligee, the public entity could file a claim and receive compensation up to the bond penal sum amount if the principal is not in compliance. If the amount of the bond is over $50,000, then the surety will most likely need to review company and personal financials in order to approve the bond.
At Baldwin Cox Allen, we have access to over 25 different A rated bonding companies which allows us to shop the market and provide the lowest possible rates. We have cutting edge surety technology which allows us to this for you without delaying the execution of your bonds, as we know that timing can be critical.
Hard To Place Bonds
We have solutions for even the most challenging bonds. We say “Yes” when other agents tell you “No”. Whether it’s because you have low credit, or there’s just a particularly onerous bond form, we pride ourselves on getting bonds approved with the best possible terms.
Please contact us today and let one of our experienced surety bond professionals assist you with your bonding needs!