Sales Tax Bond Guide
Quick & Easy Bond Quote
Why do you need a sales tax bond?
You are required to get a bond to protect the public. If you do not account for and pay any required taxes to the government when selling goods, a claim can be filed on your bond.
Apply online, get approved instantly, sign the indemnity agreement, pay on our website and we will send the bond to you.
No; however, many states do. You can view our state requirements list. If your state is not listed, it is wise to contact it directly as requirements can change.
We have forms on file. If you do not see your bond, you need to obtain the bond form from the obligee (the one requiring the bond).
It is generally based on the business' location and dollar amount of sales. You need to determine the bond amount with the specific government department requiring the bond of you; many now have calculators on their websites to help you determine the bond amount you must post.
The type of sales tax bond needed will vary by the type of goods being sold, and the state in which your business operates. A general sales and use tax bond is needed to sell goods other than alcohol, fuel or tobacco. You can apply for this bond and get an instant approval. Whether or not the state requirement will be satisfied with a general sales tax bond will vary among states, as each has unique bond requirements. It is wise to contact your state directly to determine any bond requirements, as these may be modified without notification.
In order to sell tobacco, fuel or alcohol, separate sales tax bonds are required, which are tobacco tax bonds, fuel tax bonds and alcohol tax bonds respectively. These bonds also guarantee taxes will be paid to the government.
Surety Bonds do not protect you
The bond is a form of insurance for your clients, which is why many businesses proudly list that they are bonded on their marketing material. However, you will be required to reimburse the bonding company should a claim be paid out.
Fidelity Bonds protect your business
You can protect your business from employee theft and fraud by purchasing a fidelity bond. You can read more in our fidelity bond section.
What's your bond cost?
Bond costs vary by applicant, bond amount, bond type & the agency you choose. You can get a general idea of costs using our Quick Estimate tool to the right or an exact quote instantly online!
Why our rates are so low
When it comes to surety bond insurance, there is safety in numbers. As the largest volume writer in the country, we are able to obtain the lowest rates from the strongest bonding company partners.