The Tennessee Consumption on Premises Bond, also known as the Tennessee Department of Revenue Tax Bond, is required by law in the state of Tennessee for businesses to obtain a license to serve beverages with an alcohol by volume (alc/vol) of 8% or higher.
This surety bond acts as a binding agreement between three parties, the principal (the business applying for the bond), the obligee (Tennessee Department of Revenue), and the surety company.
The purpose of the surety bond is to guarantee that the business complies with state laws and regulations and pays taxes on the sale of alcoholic beverages.
This bond protects the obligee from financial liability if the principal does not act in accordance with their contractual obligations. In such cases, an injured party may file a claim against the principal’s bond. After an investigation into the validity of the claim, the surety will compensate the injured party for damages up to the full amount of the bond if the claim is valid. Unlike insurance policies, however, the principal must reimburse the surety for the claim in addition to any related fees and expenses incurred.
The Tennessee Alcohol Tax Bond is a state requirement for licensure to sell wine, liquor, or other alcoholic beverages that are intended to be consumed on the seller’s premises. This requirement applies to restaurants, bars, or any place of business that intends to serve alcoholic beverages of at least 8% alc/vol.
Liquor By The Drink (LBD) licenses differ depending on the type of business. The categories are as follows:
At each of the above links, you can find details for the corresponding licenses. For licensure to sell alcoholic beverages below 8% alcohol, applicants should contact their local regulatory agency.
The cost of your bond will depend on whether you need the wine-only bond or the full-liquor bond. For the wine-only license, you must have a bond amount of only $2,000. The Tennessee Consumption on Premises Bond will not require a credit check when it applies to wine-only licenses and you can purchase it instantly online at EZ Surety Bonds for a premium of only $100.
While you do not need a credit check for the wine-only bond, the full-liquor bond will require a credit check. Fortunately, this soft credit check will not affect your credit score.
The bond amount for the full-liquor bond is $10,000. With optimal credit, your premium rate could be as low as 1% of the bond amount. However, even those with nonstandard credit are encouraged to apply. At EZ Surety Bonds, we work with a variety of sureties to find you the best quote available.
The Department of Revenue of Tennessee is the entity that requires this surety bond. Their contact information is as follows:
Tennessee Department of Revenue
500 Deaderick Street
Nashville, TN 37242
Phone: (615) 253-0600
EZ Surety Bonds makes the application process quick and easy for any bond you may need. For the wine-only bond, simply fill out our short online application form, submit your payment, and we will send you the original bond by mail.
To obtain your full-liquor Tennessee Consumption on the Premises Bond, you may use the same application form, and one of our friendly surety experts will contact you regarding your free quote within 24 hours.
If you need any assistance along the way, don’t hesitate to contact our knowledgeable surety experts at bonds@southcoastsurety.com or 1-800-361-1720.
In order to apply for an LBD (Liquor by the Drink) license in Tennessee, you must first determine the type of LBD license you need. In the state of Tennessee, LBD licenses are broken up into the following categories:
You can apply for a new license with the Tennessee Alcohol and Beverage Commission by creating an account and following the steps on the application page that corresponds to your specific license.
Licenses are valid for one year from the date of issuance and can be renewed on the Tennessee Alcohol and Beverage Commission website.
For wine-only bonds of $2,000, there is only a $100 premium. No credit check is required.
For a full-liquor license, the bond amount is $10,000, and a credit check is mandatory. With great credit, you could pay as little as 1% of the bond amount. Remember that this soft credit check will not negatively impact your credit score.
Just fill out the short application on the EZ Surety Bonds website, and we’ll contact you within 24 hours.
After you purchase your bond, we mail the original document to you. You can then file your bond with the obligee. In this case, you may be permitted to upload a scanned PDF of the bond through your account on the Tennessee Alcohol and Beverage Commission website. Most obligees require you to file the original bond with them (usually signed by the principal), although some obligees may approve of an electronic copy. Every obligee has their own unique filing requirements and they are subject to change, so be sure to confirm the filing requirements of your obligee before doing anything with your bond.
You’ll know if you need a surety bond because some entity will have required you to obtain one. They must also inform you of which specific bond type you’ll need. There are thousands of bonds across the country, all of which vary by state and industry.
Visit EZSuretyBonds.com to browse hundreds of bonds by state, type, or industry.