TTB Alcohol Tax Bond Guide
Bond Overview
- Purpose: To hold alcohol businesses financially liable for paying federal taxes
- Who Needs It: Alcohol-related businesses including breweries, distilleries, wineries, exporters and more that owe $50,000+ in annual excise taxes
- Regulating Body: The Alcohol and Tobacco Tax and Trade Bureau (TTB)
- Required Amount: Based on annual excise tax liability for the previous calendar year
- Premium Rates: Credit-based, typically 1–10% of the total bond amount
Read on to learn more about how alcohol tax bonds work at the federal, state and local levels.
What Is an Alcohol Tax Bond?
Alcohol tax bonds guarantee that businesses pay federal, state and local taxes for selling, producing and warehousing liquor, beer, wine, and other alcoholic beverages.
Alcohol tax bonds are known by many different names, including:
- Alcohol beverage control bonds
- Liquor bonds
- Liquor license bonds
- Malt beverage license bonds
- On-premise beer bonds
- TTB Bonds
SuretyBonds.com is licensed to issue alcohol tax bonds nationwide. Wherever you work, we can bond you!
What Is a TTB Bond?
The Alcohol and Tobacco Tax and Trade Bureau (TTB) requires a federal alcohol tax bond for alcohol professionals and businesses that owed $50,000 or more in excise taxes during the previous year. SuretyBonds.com offers the four primary types of TTB alcohol bonds:
- TTB Brewer’s Bond: For breweries and pilot brewery plants
- TTB Distilled Spirits Bond: For distilleries and other distilled spirits operations
- TTB Wine Bond: For wineries, wine wholesalers and wine cellars
- TTB Bond for Drawback: For manufacturers and exporters that claim drawback on distilled spirits
Several states and municipalities also require sellers and producers of alcohol products to submit an alcohol tax bond. For more information select your state below:
How Do TTB/Alcohol Tax Bonds Work?
Each alcohol tax bond is a legal contract binding three entities together:
- Principal: The alcohol-related business purchasing the bond
- Obligee: The federal or local government agency requiring the bond
- Surety: The insurance provider underwriting the bond
The principal agrees to pay all applicable alcohol taxes as they become due. If they fail to do so, the government entity can file a claim to recover unpaid taxes or fines.
Apply for Your Liquor License Bond Now
Some alcohol tax bonds are issued instantly at a set price, while others require underwriting to determine the exact premium. Contact us to find the bond you need and apply for a free quote.
In a rush? You can get your official liquor license bond by tomorrow if you choose overnight shipping.
SuretyBonds.com is the nation’s top surety provider. We offer the best service, fastest delivery and most affordable liquor bond prices in the industry.
