Brewery Bond - Bonding Solutions

Brewery Bond

A Brewery Bond, also known as a brewer’s bond, Alcohol Tax (Federal TTB) Brewer Bond, Distiller Bond, or Wind Bonds, is a type of license and permit bond required by the government for all businesses that engage in brewing, selling, importing, or warehousing beer.

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What is a Brewery Bond?

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

Like all other surety bonds, a brewery 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 all necessary taxes and fees and operate under all laws and regulations according to their jurisdiction. The brewery, as the principal, purchases the bond from the surety to ensure compliance with federal laws and regulations. The surety agency, 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 | Brewery Bond
Bonding Solutions | Brewery Bond
Bonding Solutions | Brewery Bond

How much do brewery bonds cost?

The cost of a brewery bond 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 amount of a brewery bond. However, as the principal you will only have to pay a percentage of the bond (unless a claim is made against the bond) which is known as the bond premium.

Sureties usually issue a brewery bond at 1% to 3% of the total bond amount. The brewery 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 brewery bond premium price!

Why are brewery bonds required?

A brewery bond provides an additional 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. Along with having the correct license and permits, this type of bond serves as an additional agreement and ensures that all laws, regulations, and policies are being followed by the brewery and its team.

How do I get started?

Applying for a brewery bond is easy when you choose Bonding Solutions as your surety agency. We are a national surety agency with the authority to write any bond in any state. We offer extremely low rates and fast approvals so that your business never has to suffer. Apply online in just minutes or contact our team directly for additional help and resources. When you choose Bonding Solutions, feel confident knowing you are choosing the best surety agency in the nation for brewery bonds!

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