Tax & Customs
Liquor License Bond
A liquor license bond guarantees that a business licensed to make, distribute, or sell alcohol will pay the alcohol taxes it owes and follow the beverage laws.
- Required by
- State alcohol control boards and revenue departments, and some cities and counties
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond runs to the state alcohol or revenue agency. It promises payment of alcoholic beverage taxes and compliance with licensing rules. If the licensee fails to pay, the agency collects from the surety.
Who needs it
- Alcohol manufacturers and brewers
- Beer, wine, and liquor distributors
- Retailers of beer, wine, and liquor where state or local law requires it
What the underwriter looks at
- License type
- Volume of sales and tax owed
- Tax compliance history
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
Is this liquor liability insurance?
No. Liquor liability insurance covers injuries caused by intoxicated customers. A liquor license bond guarantees tax payment and legal compliance to the state.
How much is the bond?
It depends on the state and license. Florida sets $25,000 for most manufacturers and distributors, $20,000 for brewers, and $5,000 for wine manufacturers, with lower amounts allowed by volume. Alabama requires new beer, wine, and tobacco retailers to post a sales tax bond of at least $25,000 for two years.