Brewers Bond | AmeriPro Surety Bonds | 844-589-9732
Brewers Bond: What is it?
A brewer’s surety bond is a surety bond that the Department of the Treasury, Alcohol and Tobacco Tax Trade Bureau (TTB), and certain state jurisdictions, requires to be posted for breweries.
What is the purpose of the brewers bond?
This surety bond ensures that the brewery will pay all required state and local taxes in connection with their brewery production.
The bond also is a guarantee that you will pay all interest fees and liabilities owed in connection with any tax obligations.
What is the duration of this surety bond?
This surety bond is issued for a period of 4 years. In certain cases, with the mutual agreement of the TTB, this surety bond can be extended beyond the initial 4 year period.
The amount of a brewer’s bond?
The brewer’s bond is issued for an amount between $1,000 and $500,000.
The amount of the bond will be dependent on the production level your brewery.
According to the Department of the Treasury, the following will be helpful in enabling you to determine the bond amount required:
- Effective January 1, 2006, if your tax liability was not more than $50,000 in the previous calendar year, and you reasonably expect to be liable for not more than $50,000 in the current calendar year, you may choose to pay your taxes on a quarterly basis. For those breweries electing to pay their taxes quarterly, the amount of the bond must be equal to 29 percent of the maximum amount of tax, calculated at the rates prescribed by law, which the brewer will become liable to pay during the calendar year, or
For those brewers who pay their taxes on a semimonthly basis, the amount of the bond must be equal to 10 percent of the maximum amount of tax, calculated at the rates prescribed by law, which the brewer will become liable to pay during a calendar year, on beer:
- (1) removed for transfer to the brewery from other breweries owned by the same brewer;
- (2) removed without payment of tax for export or for use as supplies on vessels and aircraft;
- (3) removed without payment of tax for use in research, development, or testing;
- and (4) removed for consumption or sale. [Italicize AmeriPro Surety Bond]
To determine the appropriate surety bond amount, you may also call:
877-882-3277. This is the contact number for TTB.
As circumstances for your brewery change in time, you may also request a strengthening bond from our office, which will add more coverage.
AmeriPro Surety Bonds:
Once the brewer’s surety bond amount required has been determined, AmeriPro Surety Bonds will help you to have your bond properly issued for filing with the TTB and any state jurisdictions which may require it.
It’s Pretty Easy, actually..
While it may seem like the process to get your brewer’s bond is complicated, it really isn’t at all. We’ll make it easy for you.