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
There are hundreds of different bonds for all kinds of purposes—but regardless the industry or project—they all operate essentially the same way. A surety bond guarantees that you will operate professionally and if you break the rules, a claim can be made on your bond which you’re responsible to pay.
For most bonds, you can get instantly approved and print bonds at your home or office. However, we do not offer instant approvals for a select number of bonds, as the underwriting process generally involves a more extensive review of the applicant.
It’s a guarantee that you will complete the work and fulfill your contractual obligations. Think of it as insurance for the public, not your business.
The entity requiring the bond (the obligee) will determine whether a bond is required. Bond requirements vary greatly by your occupation and location. However, fidelity bonds are insurance and are usually optional to obtain.
For the most part, yes. Bad credit can increase rates for license and permit bonds and most can also get approved for fidelity bonds regardless of credit. For contract bonds, larger contractors with poor credit can be approved with strong CPA-prepared business financials.
Looking to Get Started or Have Questions?
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!