What Experts Say About Alcoholic Beverage Bonds?
An Alcoholic Beverages bond or Liquor Tax Bond is a guarantee to the obligee (usually a government entity requiring the bond) that the principal (the entity selling the alcohol) will pay all the taxes associated to the sale of alcoholic beverages. If the principal fails to fulfill their obligations as outlined in the regulations, the obligee can ask the surety company to recover the unpaid taxes.
An alcoholic beverages bond is required for those who are engaged in any business involving alcoholic beverages. The cost of this type of bond differs from state to state. The bond amount depends on the state or government authority requiring the guarantee. One of the most important factors that surety companies consider while reviewing the bond applications is credit score. A better financial standing gives higher chances of getting a lower bond premium.
If you are considering applying for an alcoholic beverage bond, make sure to choose your surety agent carefully. A reputed and genuine surety agent can provide you the best solution for your needs.