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Brewers Bond

Brewers bonds, also referred to as Alcohol Tax (Federal TTB) Brewer, Distiller or Wine Bonds, are a type of surety bond required by the government for all businesses that engage in the brewing, selling, importing, and warehousing of beer.

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What is a Brewers Bond?

A brewers bond is a surety bond that can be required by the federal government and specific state governments. The bond guarantees that the business engaged in the brewing, selling, importing, and warehousing of beer will pay taxes required by the government, usually The Alcohol and Tobacco Tax and Trade Bureau (TTB). A brewer’s bond, therefore, acts as a type of liquor license bond and guarantees compliance with state laws and regulations. 

Like all other surety bonds, a brewers bond involves three parties: the obligee, the principal, and the surety. The federal or state authority acts as the obligee, requiring a guarantee that the brewery will pay the necessary taxes. The brewery, as the principal, purchases the bond from the surety to ensure compliance with federal laws and regulations. The surety company, therefore, takes on the responsibility to cover any expenses in the case that the principal fails to comply with the rules stated in the bond. If the principal (brewery) commits tax fraud or any other similar default, a claim is made on the brewer’s bond, and the surety will cover the costs upfront. The principal is then responsible for repaying the surety once the claim is closed. 

Bonding Solutions | Brewers Bond
Bonding Solutions | Brewers Bond
Bonding Solutions | Brewers Bond

How much will a Brewers Bond cost?

The brewers bond cost depends on your state or local municipality as well as the location of your brewery. The size of your business and required yearly taxes will also influence the brewers bond price. However, you will have to pay only a percentage of the bond (unless a claim is made against the bond). 

Sureties usually issue a brewers bond at 1% to 3% of the total bond amount. The brewers bond premium cost can vary depending on your financial statement and credit score. At Bonding Solutions, we offer low bond rates and reliable services for many years. We also provide unique programs to customize bonds for each client’s specific needs. Contact us today for a free consultation or apply online for a free quote and find your brewers bond premium price!

Why is this bond required?

A brewers bond is a guarantee that brewers will operate legally and pay the necessary taxes for the business. Governments and local authorities require this type of bond to protect themselves and the public from potential fraud or misconduct on behalf of the brewery. 

How do I get started?

Obtaining a brewers bond is easy when you choose Bonding Solutions as your surety team We are a national surety agency with the ability to underwrite bonds in all 50 states. We offer affordable rates and fast approval for our clients to ensure that your business never suffers. Getting the right bond for your business is crucial. Apply quickly online by clicking the button below and one of our team members will reach out to you shortly thereafter to finalize the bond details.

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