For businesses in some states, this surety bond may be required to guarantee the proper payment of all sales taxes.

1. Sales Tax Bond
W H A T D O Y O U N E E D T O K N O W ?
For businesses in some states, this surety bond may be required to
guarantee the proper payment of all sales taxes.
PRESENTED BY:
Some states require that a business purchases a sales tax bond in
order to ensure that the owner will pay the proper sales taxes each
year.

2. The 3 Parties Involved:
A sales tax bond, like other surety bonds, is a contract between three parties:
The principal of a bond is the
business owner who purchases
the sales tax bond.
PRINCIPAL OBLIGEE
The obligee is the agency requiring the
sales tax bond from a business owner as
a guarantee that sales taxes will be paid
as necessary.
The surety is the underwriter of the sales
tax bond and will pay a claim to the obligee
if the principal fails to meet their tax
payment obligation.
SURETY

3. The 3 Parties Involved:
If a business owner does not pay the required sales taxes each year,
or any other misconduct is found, then the government agency may
file a claim against the bond.
A payment up to the total amount of the bond will be paid if it is
determined that the claim is legitimate.
The business owner, or principal, will then have to reimburse the
surety company for the total amount of the payout on the claim.

4. The Cost of this bond:
How much you will need to pay for a sales tax bond will depend on several factors, including state
requirements for the size of the bond and estimates of projected sales taxes for the year.

5. SOURCE:
https://suretybondauthority.com/sales-tax-bond/
800-333-7800
www.suretybondauthority.com