Bond Amount
Determined by the State
Requiring Entity
Varies by State
Premium Rate(s)
Varies by State and Bond Amount*
Who is Required to Secure this Bond
This bond may be required by any business that has applied for a permit to engage is business as a seller. The bond requirement is determined by the State Board of Equalization
Why is the Bond Required
The bond is required to guarantee that the business will pay all required sales tax to the State. The bond amount is generally set forth based on the estimated amount of revenue and taxes that will be collected by the applicant.
Who is Protected Under this Bond
The bond is made payable to the People of the State of California to ensure that all taxes are collected and paid according to the Revenue and Taxation Code.
Underwriting Process
Each applicant must first complete and submit the application for a Bond of Seller (Sales Tax), which contains all of the pertinent information regarding the business and business owners. These bonds can be INSTANTLY ISSUED upon review of a completed application, so long as the required bond amount does not exceed $25,000.
The Bond of Seller will be issued and mailed to the client the same day that the original signed application and payment for the bond premium are received.
What you Need to do Once you Have your Bond
Once the Bond of Seller has been approved and released to the applicant’s care, it must be filed with the appropriate entity, along with all related paperwork.
* Please be advised that the quote you obtain for this bond may include a fee charged and retained by The Bond Exchange.