Opening an alcoholic beverage business is a great opportunity that comes with a lot of responsibility. Certain businesses must acquire a bond before they can get their license or permit.
For questions, contact your local TABC Office.
Types of Bonds
- Conduct Surety Bond
- Performance Bond
- Fee Interest Bond
Conduct Surety Bond
You will need this if you’re a retailer who does not hold a Food and Beverage (FB) Certificate. The amount of the bond is based on your business’ distance from a public school:
- $5,000 bond — Businesses more than 1,000 feet from a public school.
- $10,000 bond — Businesses less than 1,000 feet from a public school.
You can submit the Conduct Surety Bond as a bond, letter of credit or assignment of a certificate of deposit (CD).
You’ll only need this bond if you meet all of the following criteria:
- Your business is located in Bexar, Harris, Dallas or Tarrant counties.
- You’re a holder or applicant for a Retailer Dealer’s On-Premise License (BE) or a Wine and Beer Retailer’s Permit (BG).
- You do not hold a Food and Beverage (FB) Certificate.
If all the above points apply to you, you’ll need a $2,000 bond. This amount will increase if you violate the Alcoholic Beverage Code or TABC Rules.
You can submit the Performance Bond as a bond, letter of credit, or assignment of a certificate of deposit (CD).
Fee Interest Bond
You’ll only need this bond if you’re participating in an alternating brewery proprietorship or contract brewing arrangement and:
- You hold a Nonresident Seller’s Permit that has a Nonresident Brewer’s License as a subordinate
- Or you hold a Nonresident Manufacturer’s License and you do not own a fee interest in any brewing facility.
If one of the above situations apply to you, you’ll need a $30,000 fee interest bond.
You can submit the Fee Interest Bond as a bond, letter of credit or assignment of a certificate of deposit (CD).