After April 15, your business may need a tax bond. A tax bond is a surety bond that is usually required by the State. Some of these bonds are needed the day you start your business others expire at the end of the year.  The majority of tax bonds are required for retail businesses guaranteeing the payment of sales taxes to the obligee.

Different types of tax bonds

Tax Bonds for restaurants :

There are many different types of tax bonds.  Some tax bonds are required for restaurants or bars to guarantee the payment of alcohol taxes. These bonds are also known as liquor bonds and alcohol bonds.

Penalty Bonds :

Some tax bonds are considered penalty bonds because your business was late on paying it’s  taxes.

Sales Tax Bonds :

The bond amount for Sales tax bonds is either based off your projected gross income or the bond amount is already preset by the obligee. There are even Tax Bonds required by contractors to guarantee that your will pay your taxes on the materials your purchased wholesale.

How much does a Tax Bond Cost?

The cost of the surety bond can vary depending on the bond language, credit, financial stability and the State.

What to do if you need this Surety Bond?

The first thing that the surety will need is an application.  Filling out the application should take five minutes or less.  The surety will review your credit, financial stability to determine surety credit.   After the application is completed you should receive an approval within the same day or the following day.