What bonds do you need for a TABC permit? Very often, when we first speak with a client we mention bonds. In this post, we will go over what those bonds are and which ones you will need.
As mentioned there are a few different types of bonds that accompany a TABC permit. The location of the business and type of permit will determine which bonds you need.
When you apply for a TABC permit you will be required to post a bond or similar security. A majority of our clients do post bonds. What we would like to note is that bonds are not the only route you can go. You can post a CD or cash.
This being said we do believe that bonds are the most cost-effective way to go. That being said we understand some clients depending on their business history may have issues getting bonds so this is where the alternatives come in.
Conduct Surety Bond
The first bond we will discuss is the Conduct Surety bond. The Conduct Surety bond is a bond that is required state-wide in Texas when you apply for a TABC permit. The Bond amount can be anywhere from $5,000 – $10,000. It will cover any violations that would take place on the premises and is good for 3 years. After the 3 years have passed and no incidences have taken place at the premises you can apply for an exemption.
Performance Bond
The Performance bond is going to cover incidences at the premise such as a breach of peace. What is different about this bond is that it will only be needed if you are applying for a TABC in the following counties:
- Harris County
- Bexar County
- Dallas County
- Tarrant County
This bond is in addition to the Conduct Surety bond. This bond will increase as violations occur at the TABC licensed premises. It starts at $2,000 and can end up at $6,000*.
*As your location receives more violations and needs the higher bond amounts we have found it may get more difficult to place you with a bond provider.
The Performance Bond unlike the Conduct Surety bond does not offer the exemption over time if you have not had any violations.
Mixed Beverage Gross Receipts & Sales Tax Bond
Furthermore, we have the Mixed Beverage Gross Receipts bond and Mixed Beverage Sales Tax bond. In the event of any delinquent liquor tax, these bonds will be used to pay for any tax incurred.
The Mixed Beverage Gross Receipts bond and Mixed Beverage Sales Tax bonds are going to be in the amount of $3,750 each. These bonds are good for 2 years. As long as you pay your liquor tax on time at the end of the 2nd year you can apply for an exemption.
Warning: If we apply for the exemption this might trigger an audit. We will let you know if this will be the right choice for you or what your options are.
Food & Beverage Certificate
Finally, the Food and Beverage Certificate is not a bond however, it can be used in a similar way in that if you meet the requirements you can apply for this certificate. We will go over this with you when we apply for the permit to determine if this is going to be a good option for you.
We can get the bonds you need!
Find out why other smart business owners like yourself choose Hernandez & Associates to apply for their TABC permits in Texas. We are here to guide you through the process.
Thank you for reading!
Sincerely, Hernandez & Associates
We also made a video on this same subject. 4 Common Bonds for TABC permits
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