Alcohol Bonds in Canada

Understanding Alcohol Bonds Requirements In Canada

There is absolutely no doubt that Canadians love their alcohol. As a business, which desires to capitalize on the country’s love, it is pertinent to learn about alcohol bonds and the country’s bonding requirements. If you wish to sell alcohol within the country, you will need to obtain the required bonds, so you can do legally. Within this guide, you will learn about alcohol bonds and requirements for Canadian businesses that wish to sell alcohol.

What Are Alcohol Bonds?

Now, it is essential to learn about the overall purpose of the alcohol bond. This is a type of surety bond, which helps to protect the government of Canada. Companies that obtain this type of bond are guaranteeing the local government that they’ll pay all taxes and fees, which are imposed on them. The bond also helps to protect the government, by decreasing the probability that the principal will falsify records regarding their sales. All companies that intend to sell alcohol will need to obtain the associated bonds, before attempting to do so.

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Understanding The Costs

The majority of businesses will pay very close attention to the cost of the bond. This could very well be the most important aspect of all. When it comes down to it, the costs are not universal and will vary from business to business. This is the case, because there are a handful of variables, which play a role in the determination of the finalized cost. The company’s reputation and history will almost always be impactful. At the same time, your personal credit can help to determine how much you’ll be required to pay.

Those that have managed to maintain immaculate credit will be able to obtain a favorable rate ranging from one to three percent of the bond amount. If you have bad credit, your rates will be much more sizeable and could range from four to fifteen percentage. Shopping around and attempting to obtain the most favorable rate is truly pertinent, as doing so will help to ensure that your company spends less and earns more!


Those that wish to obtain the appropriate alcohol bonds will need to learn about the requirements. These requirements are actually diverse and vary from one province to the next. This can make the process somewhat more complicated, since you will need to check with the guidelines for your specific province, before moving forward. However, the majority of businesses will not need to put down any extra money as collateral, when obtaining alcohol bonds. Just make sure you know the guidelines for your province, before moving forward.

Other Names

It is also a good idea to learn about the different names commonly used for this type of bond. The name can differ from province to province, but they’re all virtually the same. Below, you will find a list of names, which can be used in place of the alcohol bond.

  • Wind bond
  • Liquor license bondalcohol permit bond
  • Liquor bond
  • Alcohol beverage control bond
  • Brewer’s bond
  • On-premise beer bond

This is not a comprehensive list, but it should give you an ideal of what to look for.

How To Obtain A Liquor Tax Bond

If you must obtain this type of bond, you can rest assured knowing that the process isn’t overly complicated. In fact, most companies will be able to fill out and submit the application online. Once you’ve submitted the application, you will be contact by the surety bond broker. This entity will provide you with a quote, which you may accept or refuse. Remember to shop around extensively, so you can obtain the cheapest rate possible. Also, this process can differ slightly from broker to another.


Truthfully, alcohol bonds are immensely important and cannot be ignored. Although they’re easily obtainable, the prices can vary substantially. With this in mind, it is pertinent to take your time, shop around and obtain the lowest rate possible, so you can earn more for your business.

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