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License Bond

Tennessee Sale of Alcoholic Beverages for Consumption on the Premises Bond

This bond is required for businesses in Tennessee that sell alcoholic beverages meant to be drunk on-site, such as bars, restaurants, and nightclubs. The state requires this bond to protect the public and ensure businesses follow alcohol laws and regulations. If a business violates these rules, the bond provides funds…

Overview

What it is.

This bond is required for businesses in Tennessee that sell alcoholic beverages meant to be drunk on-site, such as bars, restaurants, and nightclubs. The state requires this bond to protect the public and ensure businesses follow alcohol laws and regulations. If a business violates these rules, the bond provides funds…

Who usually needs it

Businesses holding Liquor-by-the-Drink (LBD) licenses or similar permits to sell or serve alcoholic beverages for on-premises consumption, including full-service restaurants, hotels, bars, nightclubs, lounges, private clubs, country clubs, and entertainment venues. This bond is required as a financial guarantee that the licensee will properly collect, repor…

Pricing & timing

What to expect.

Generic pricing

License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…

Typical timeframe

Issuance timeframe varies by bond type and underwriting

Application

What to do next.

  1. Tell us the bond name, state, and amount on your form.
  2. Share business and applicant info so the team can quote it.
  3. Sign and pay; we issue the bond and send you the documents.
  4. Keep your effective date and renewal date on file with us.
Start the application.

You are on the exact bond page. The next step is to start the quick application.

Details

Bond details.

StateTN
Bond amountVaries by license type or project
ObligeeState of Tennessee
Bond classLicense Bond
CategoryAlcohol & Beverage
BondTennessee Sale of Alcoholic Beverages for Consumption on the Premises Bond
JurisdictionState
Plain descriptionThis bond is required for businesses in Tennessee that sell alcoholic beverages meant to be drunk on-site, such as bars, restaurants, and nightclubs. The state requires this bond to protect the public and ensure busines…
Who needs this bondBusinesses holding Liquor-by-the-Drink (LBD) licenses or similar permits to sell or serve alcoholic beverages for on-premises consumption, including full-service restaurants, hotels, bars, nightclubs, lounges, private c…
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Next step

Ready to move forward?

Pin down whether this is your bond, then start the application. Ava can confirm the right state and license type if you are not sure.