Wine Surety Bond
If you sell, brew, distill, manufacture, or distribute wine or other alcohol, you must obtain a wine surety bond. The Alcohol and Tobacco Tax and Trade Bureau (TTB) mandates a surety bond to ensure that all appropriate excise taxes will be on time and that the business will be conducted lawfully.
What is a Wine Surety Bond?
A wine surety bond is a type of risk management tool. It guarantees the government that all excise taxes will be collected and paid as the law requires. It does this by providing a financial incentive for lawful business practices. It also forms a mechanism for reimbursing the government if the business fails to follow the law.
How Do Wine Bonds Work?
A wine bond, like any type of surety bond, is a legal contract that involves three essential parties:
- The Principal is the person, business, or entity that is bonded.
- The Obligee is the agency that mandates the bond.
- The Surety is the insurance company that underwrites the wine bond.
If the government believes a winery, distiller, or alcohol manufacturer has not paid the proper taxes or has breached a law or regulation, the agency can file a claim against the wine bond. The surety must thoroughly investigate all claims. When the surety's investigation proves a valid claim, the surety pays the damages up to the bond's total value. However, if the claim proves groundless, the claim will be dismissed.
The principal is financially responsible for all claims and must reimburse the surety for all payouts made.
Who Needs a Wine Tax Bond?
Anyone, from an individual to a large corporation that sells, manufactures, or distributes consumable alcohol products, must obtain a wine tax bond to conduct business legally. This federal requirement applies to all professionals in every state. If you are unsure whether your business qualifies for this requirement, the surety experts of Viking Bond Service will guide you through the bonding process, and help you learn what bonds you need.
How Much Does a Wine Surety Bond Cost?
A wine surety bond costs just a tiny fraction of the bond's total value, typically between 1-5%. The size of the wine seller surety bond you'll need depends upon the size of your operation and the amount of taxes you will need to collect and remit over the year. Your credit will largely determine the premium you pay. The better your credit, the lower your premium will be. However, we work with our clients to get them bonded for the lowest price.
How Can I Get a Wine Surety Bond?
At Viking Bond Service, it is easy to obtain a surety bond. Complete our online application, and we'll get you a competitive wine bond quote. You are also welcome to contact us online or call us at 1-888-2-SURETY (1-888-278-7389). We'll get you bonded so you can focus on your business.
Quotes are available for clients with low credit. In many cases, a bond is not out of reach simply due to bad credit.
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