Secure Your Texas Sales Tax Bond
Safeguard your business and ensure compliance with ease. Get your Texas sales tax bond starting from $100.
Your Trusted Partner for Secure, Hassle-Free Surety Bonds
TMD Surety Bonds is your local Texas surety bond agency. Since our establishment in 2011, we have helped thousands of customers with their bond needs. Our clients know they can count on our attentive customer service, surety bond mastery, and price transparency.
What Is a Sales Tax Bond?
A Sales Tax Bond is a type of surety bond that guarantees a business will pay all required sales taxes to the government. It’s often required by states as a condition for obtaining a sales tax permit.
Why is a Sales Tax Bond Required in Texas?
A Sales Tax Bond is required in Texas to ensure businesses pay sales tax on all items sold within the required timeframe. It’s mandatory for obtaining a business license and is used as security by the State Comptroller. The bond is also a safeguard against violations of sales tax regulations.
Who Needs to Purchase a Sales Tax Bond?
Sales Tax Bonds are typically required by businesses that collect sales tax. Here’s a list of who might need to purchase this bond:
- Retailers and merchants operating in states that require a Sales Tax Bond.
- Businesses selling more than two taxable items within a 12-month period.
- Sellers of specific products like alcohol, tobacco, or fuel, as they may need special bonds.
What Are the Different Types of Sales Tax Bond?
Sales Tax Bonds come in different types, each tailored to specific business activities. Here are the common types:
- General Sales Tax Bond: Required by most businesses collecting sales tax.
- Fuel Tax Bond: Ensures sellers of fuel pay all taxes to their state government.
- Alcohol Bond: Required for businesses selling, manufacturing, or storing alcohol.
- Cigarette Tax Bond: Mandatory for sellers of cigarettes and other tobacco products.
- Special Bonds: Certain businesses selling specific products like medical marijuana may need special bonds.
How Does a Sales Tax Bond Work in Texas?
A Sales Tax Bond in Texas is a contract between three parties ensuring businesses pay sales taxes on time. The parties involved are:
- Business: The principal that needs to post the bond.
- State of Texas: The obligee that requires the bond.
- Surety Company: Provides the bond to the business.
The bond remains valid until the surety is released or the business ceases operations.
How to Get a Texas Sales Tax Bond
Effortlessly secure your sales tax surety bond in three simple steps! Experience the reliability and convenience of our hassle-free surety bond process.
2. Request Quote
How Much Does a Sales Tax Bond Cost in Texas?
The cost of a Sales Tax Bond in Texas is a percentage of the bond’s full amount, which is the greater of either $100,000 or four times the average monthly tax liability. The cost ranges from:
- 1 to 5% for low-risk bondholders, meaning those with a strong credit score, financial stability, and minimal claims history. The minimum cost is $100.
- Up to 10% or more for those with bad credit.
This makes it an affordable and valuable investment for businesses to ensure compliance with sales tax regulations.
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The bonding process can be confusing and cumbersome. Our surety bond experts are standing by and ready to answer any questions. Let’s get you bonded today!
Sales Tax Bond FAQ
Texas Sales Tax Bond is required for businesses that have difficulty paying due taxes, applying for a tax permit, or changing the legal structure of the business.
Texas Sales Tax Bonds are continuous and remain valid until the surety company cancels the bond or the business ceases operations.
The process of securing a Sales Tax Bond can typically be issued the same day.
TMD will notify you at least 30 days before your renewal date with an approval. If you are not with our agency yet, please apply on our website.
Yes, you can still obtain a Texas Sales Tax Bond with bad credit, but the price of your bond is likely to be higher.
Three parties are involved: the business owner (Principal), the local or state government agency (Obligee), and the surety bond company (Surety).
To avoid claims, ensure timely payment of sales taxes and compliance with all relevant regulations. Failure to do so can lead to claims against the bond.
Need a Texas Sales Tax Bond? Have Questions?
TMD Surety Bonds is here for your immediate Sales Tax Bond needs. We will be more than happy to explain and answer all of your questions.