Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your Missouri liquor license bond needs. Learn how to get a liquor license in Missouri, below.
What Liquor Licenses Are Issued in Missouri?
The Missouri Department of Public Safety, Alcohol and Tobacco Control (ATC) issues liquor licenses in five main categories, with multiple options within each category:
- By the Drink
- Temporary Retail
- Other Retail
- Secondary Retail
What Are the Steps in the Licensing Process?
The licensing process varies somewhat by license type, but there are certain requirements that are common to many of them. Some of these include:
- Completing an application form
- Providing entity formation papers
- Obtaining a retail sales tax license
- Agreeing to a criminal background check
- Paying a license fee
- Purchasing a liquor tax bond
Why is a Missouri Liquor Tax Bond Required?
A Missouri liquor tax bond is a type of license and permit surety bond that’s a prerequisite for getting and keeping a liquor license in the state of Missouri. There must be an active liquor tax bond in force at all times to prevent suspension or revocation of a liquor license. The required bond amount, known as the bond’s “penal sum,” is determined by ATC based on the licensee’s historic or projected tax liability.
A Missouri liquor tax bond is a licensee’s guarantee to pay all taxes due on the sale of alcoholic beverages and conduct business in compliance with all applicable rules outlined in Chapter 311 of the Missouri Revised Statutes. A licensee’s failure to do so can result in a claim against the liquor tax bond.
How Are Missouri Liquor Tax Bond Claims Paid?
There are three parties to the legally binding surety bond agreement for a Missouri liquor tax bond:
- ATC (the bond’s “obligee”)
- The licensee (the bond’s “principal”)
- The bonding company authorizing the bond (the “surety”)
The principal is legally obligated to pay all valid claims against the bond, while the obligee and the surety are indemnified against any liability for claims.
That said, in practice, it’s often the surety that pays a claim initially. Unless the principal pays a claim promptly or the surety negotiates a settlement, it’s the surety that will pay the claim on behalf of the principal. That payment creates a debt that the principal is then obligated to repay to the surety.
How Much Does a Missouri Liquor Tax Bond Cost?
Two factors enter into the premium calculation for a Missouri liquor tax bond:
- The bond’s penal sum established by the obligee
- The premium rate set by the surety
The surety is primarily concerned about being repaid on schedule by the principal after paying a claim on the principal’s behalf. The best indicator of that credit risk is the principal’s personal credit score.
With good credit, the premium rate will most likely be in the range of one to three percent.
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