North Dakota Sales Tax Bonds Explained
If you want to sell taxable retail goods and services in North Dakota, you have to obtain a sales and use tax permit. The procedure includes providing a sales tax bond.
The purpose of the bond requirement is to ensure that you will make due payments on sales and use taxes collected during your retail activities in the state. Thus, it ensures your legal compliance with tax regulations.
The surety bond represents a contract between three entities. The principal is your retail business. The obligee is the North Dakota Office of the State Tax Commissioner. The surety is the third party that provides you with the bond
Questions about Sales Tax Bonds in North Dakota
When do I need this bond?
In order to obtain a North Dakota sales and use tax permit needed for retail goods and services sales, you have to obtain a surety bond. It guarantees you will file any reports connected with your taxable activities, as well as the payment of all due taxes to the state. Thus, it ensures you will follow your obligations under applicable North Dakota tax laws.
What is the bonding cost?
The Office of the State Tax Commissioner determines the amount for the North Dakota sales and use tax permit bond separately for each applicant. It depends on the volume of taxed sales you have performed in the state. On the basis of this required amount, you have to pay a small percentage of it, which is called the bond premium.
In order to determine your exact surety bond cost, your surety has to take a close look at your personal credit score, business finances, and fixed and liquid assets that you may demonstrate. This is how it determines how stable your bond application is. The lower the perceived risk, the smaller your bond premium can be. The typical rates for applicants with stable finances are between 1% and 5%.
Can I obtain this bond with bad credit?
Getting bonded with financial problems can be tough. That's why Lance Surety Bonds runs its Bad Credit Surety Bonds program. It is created for applicants with low credit scores, tax liens, bankruptcies, and civil judgments.
The bad credit rates are in the range of 15% to 17% because of the increased risk. Still, due to our close partnerships with a number of A-rated, T-listed surety companies, we can shop around for the best option for you.
How do I get a sales tax bond?
Your first step is to complete our online application form (it takes 5min) and provide all the necessary paperwork. We can then send you an exact quote. In case you're satisfied with it, you can purchase your bond straight away. Then you will get a digital and a paper version of it.
Our detailed How to Get Bonded guide contains a thorough overview of the bonding process, should you need more information about it.
Have any further questions? You can consult our bonding specialists by calling us at (877) 514-5146.
What happens if I get a claim?
If you fail to file the required reports to state authorities, or if you don't transmit the collected taxes on your sales, you can receive a claim against the bond. This is how the state can protect the interests of its citizens. The claim sum can be up to the bond amount you have posted.
The surety that bonded you may step in to cover the costs on proven claims. You are fully liable for all expenses connected with the claim. Thus, it is best to avoid situations that can give rise to grave financial issues.
Still Have Questions? Check Our FAQ Pages
What Our Clients Have To Say?
Kimberlee AblesQuick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Andrew PoincotLong story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
Margie MartinezWe decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!