call us: 877.514.5146

California Sales Tax Bond

Complete Guide to California Sales Tax Bonds

  • Bad credit bonding options
  • A-rated and T-listed surety underwriters
  • 100% money-back guarantee
  • Secure online application

sales-tax-bond.jpg

How Do I Get My Bond?

Start Your Application
Fill out the online application form

Receive Your Free Quote
You will be sent your quote in minutes

Buy Your Surety Bond
We offer secure payment options

California sales tax bond requirements

Sellers in the state of California are required to post a sales tax bond by the California State Board of Equalization (SBE). The main purpose of this surety bond is to guarantee that businesses pay the right amount of sales tax and do it on time.

Like other surety bonds, the California sales tax bonds acts as a three-party agreement, between a principal (the business), an obligee (SBE), and a surety (a bonding company). If the principal fails to meet their contractual obligations, the obligee can file a claim and seek reimbursement for the losses incurred. The surety and the principal are obliged to make good on the claim.

You can begin your online application now, or explore the sections below for some useful tips and information on sales tax bonds in California.

Start your surety bond application. 100% money-back guarantee!

Frequently Asked Questions

How much does a California sales tax bond cost?

It is easy to calculate your bonding costs. First, you need to know the total value of the bond you need to post. The total value is the maximum protection the surety bond offers. Each city or county can decide on the sales tax bond amount they want to impose. The amounts can vary between $2,500 and $50,000, and is determined based on the amount of sales tax a given business is expected to pay. The more it is, the higher the total bond value.

Business owners pay only a small fraction of the total bond value, known as the bond premium. The premium normally varies from 1% to 5% per year, for applicants with good credit scores and no major issues on their credit reports.

Surety bond companies, however, can often consider other factors and request additional information, such as personal and business financial statements. Be sure to read all about bonding costs on our What Does a Surety Bond Cost? Page.

Can I get a California sales tax bond with bad credit?

Surety bond companies consider sales tax bonds to be high-risk, which means the underwriting process can be a bit more difficult. However, our bad credit surety bonds program can ensure you get the bond you need, regardless of your credit.

Premiums for bad credit applicants are in the range of 15%-17%. Choose Lance Surety Bonds and our agents will help you build a strong application that will still be accepted by bonding companies.

How do I apply for a California sales tax bond?

We offer a fast and secure online application. Simply fill it out and we will contact you as quickly as possible. You’ll get a free bond quote and instructions on how to finalize your application.

Apply for your surety bond today and lock your rate for 90 days!

Our turnaround time is one of the fastest in the industry. Under normal circumstances we should be able to issue your bond in as little as 1-2 business days. For any questions, feel free to call us at (877) 514-5146.

What happens in case of a claim?

As already mentioned, California sales tax bonds serve as protection of the state in case you fail to declare your sales and pay taxes on time. In such a case, you may face a claim, which can be very costly to your business. This is why we advise avoiding claims at all costs. Stay up-to-date with all legislative amendments and sales tax amount changes, to make sure you’re in compliance.

If a claim is filed against you, you should notify the surety as quickly as possible. They will assess the charges, and they may provide legal assistance if they believe you have a strong case. In certain instances, an out-of-court settlement might be the more desirable outcome. In the worst case scenario, you will be mandated by a court decision to reimburse the claimant up to a sum not exceeding the total bond value.

START YOUR APPLICATION It's FREE. No Obligations. Approval in Minutes.

What Our Clients Have To Say?

Kimberlee Ables
Quick 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 Poincot
Long 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 Martinez
We 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!

Still Have Questions? Check Our FAQ Pages