What is a Sales Tax Bond?
The Continuous Bond of Seller bond is a blanket bond that applies to retailers. Retailers and business owners must hold one of these bonds as a prerequisite to getting a license or a permit in the state to conduct their business. Also known simply as a continuous bond of seller, this surety bond acts as a guarantee to the Texas Comptroller of Public Accounts that you will pay sales tax on all items sold within the required timeframe. These bonds are subject to underwriting.
Sales Tax Bond Details
While requirements vary greatly depending on project type and scope, most surety bonds will require the following information from the contractor or principal.
1. A credit check and at least two years’ worth of financial statements prepared or reviewed by a CPA
2. A copy of the contract or bid invitation associated with the performance bond
3. A TMD application
4. Real estate or other collateral that is owned by the contractor
Pricing & Terms
Bond amount varies and is based on individual credit reporting. Surety bond costs are a percentage of the full bond amount, which is usually determined by your personal credit. Providing industry experience, strong personal credit, and business/personal financials will help lower your bond rate. Reach out for a quote today.
Bond Purchase Process
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Frequently Asked Questions
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