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How Do I Get Bonded for a Liquor Store?

A liquor bond, also known as an alcohol surety bond, is a financial confirmation that individuals who deal in alcohol will pony up all alcohol-related taxes and conform to the many rules as well as industry standards. Even though liquor bonds are popularly required for bars, breweries, and liquor stores, they are additionally required for just about any business that produces, stores, or hauls liquor.

Liquor companies with good credit can anticipate shelling out 1% to 5% of the minimum amount required, which varies by state. A bond for a liquor license is composed of an arrangement among three stakeholders, the principal, the surety company, as well as the obligee.

The principal is the firm that purchases the bond, the obligee is the government agency that collects taxes on alcohol sales, and the surety company is typically an insurance business that markets the bond to the principal. A liquor bond differs from the majority of sureties due to the fact that a pretty standard bond grants some sort of fulfillment to the principal, whilst a liquor bond assures financial reimbursement for taxes accumulated on alcohol sales.

A claim against the liquor bond can be rendered anytime a company fails to obtain or report the appropriate tax sums on liquor sales, or even when deceitful files are forwarded to the state agency. If indeed the assertion is determined to be legitimate, the surety business will pay the claim amount as well as pay back the state agency.

Just after this intervention, the surety company will seek to recover the missing funds from the principal. Every principal who wishes to remain in business would be obligated to reimburse such a claim to the surety firm in order for the surety to be offered whole again.

If claims are being made against the liquor bond, it may be extremely detrimental to the business person’s credibility in addition to their economic state, and as such having the bond in place is a huge motivation to collect and reimburse taxes correctly.

Steps to Obtain a Liquor Store Bonding

  1. Find the best bonding company

The initial and possibly most significant step is to locate the best bond entity for your particular requirements. Even though local insurance agents may be capable of helping you in drafting a bond for your company, odds are that they’re going to lack depth with surety bonds and may not have knowledge of the most effective programs offered.

Surety bond agencies offer expertise in bond writing and are capable of bonding with you more quickly and for a lower cost. Furthermore, if you’re wondering about obtaining a surety bond with poor credit, ensure that the organization you apply with has combative bad credit programs.

  1. Request approval

After determining where to obtain a surety bond, the very next procedure is to submit an application for approval. In just about all cases, license bond approval could be granted merely on the basis of the business owners’ personal credit. Don’t get discouraged when your first application is rejected.

It is feasible that you merely failed to locate a bond firm with direct connections to the appropriate bonding programs. Continue looking!

  1. Pay your bond premium

Once you get the approval, all you need to do is pay the bond premium and submit a confirmation of the indemnity agreement (or collective bargaining agreement) that you signed with the bonding company. Notify the appropriate agency for information on how to acquire a bond.

Your bond would be approved and delivered to you instantly upon receiving the payment as well as the signed agreement.

As a core component of your license conformity, the initial draft of the bond must be signed by the entrepreneur prior to being delivered to the obligee. Bonds shouldn’t be forwarded specifically from the surety to the obligee because of this.

What is the Cost of a Liquor Bond?

The mandatory bond amount has always been decided by the applicable state agency, but these amounts typically range between $2,500 and $7,500.

While acquiring the bond, the owner of the liquor store would be obligated to shell out a proportion of this sum as a premium, which will typically range between 1% and 5%. A $7,500 liquor bond with a 3% premium cost, for instance, will require the owner of a liquor company to shell out $225 to obtain the liquor bond.

The entrepreneur has no method of lowering the bond sum deemed necessary by the governmental agency. A credit rating, on the other hand, could have a major impact on the premium percentage. This is because companies with excellent credit are regarded as less problematic compared to those with poor credit, as a favorable credit rating indicates solid company procedures.

You could likewise present evidence to the appropriate state agency by providing definite evidence of liquidity and possessing a variety of important company assets.

Businesses that have poor credit history may still be able to obtain a bond, but it could be at a much higher premium percentage than it would be for a company with good credit history. It is also feasible for a company with prior insolvencies or civil verdicts to acquire a bond, however, the cost would be significantly greater and the bond would be a little more challenging to get.


Once you set up a business that tries to sell liquor to the general public, you would be obligated to buy a surety bond for a liquor license. This is a requirement for the selling of liquor across all states in the United States, and it is a type of tax bond that assures payment of liquor taxes to the appropriate authorities.