What Is a Nevada Sales Tax Bond?
Businesses in Nevada that need to pay sales tax related to their operations have to obtain a sales tax permit. In many cases, this also entails posting a Nevada sales tax bond.
This type of surety bonds act as an extra layer of protection for the state. The bond guarantees that you will make all due payments of taxes, fees, interests and other similar finances on time and in the full amount required.
Your Nevada sales tax bond, just like other surety bonds, is a contractual agreement between three parties. Your business is the principal that has to obtain the bond. The state authority– the Nevada Department of Taxation– is the obligee that requires the bonding. The third party is the surety, which provides the bond.
Frequently Asked Questions
Who needs to obtain a Nevada sales tax bond?
If you have a Nevada company that sells tangible personal property, you need to get a sales tax permit. In most cases, this also entails posting a Nevada sales tax bond.
The requirement for posting a bond is only applicable if the security amount is estimated at more than $1,000. The calculation is made on the basis of your business’ taxable monthly sales.
The permit is obtained by applying with the Nevada Department of Taxation and meeting all requirements, including the bonding requirement if needed.
How much does a Nevada sales tax bond cost?
The sales tax bond price that you will have to pay is determined by the bond amount that you are required to post. The bond amount should be three times your monthly sales and use tax, or the estimation of this tax. If this amount is less than $1,000, you are not required to post a security.
While your bond amount can be significant, your bond premium is only a few percentages of it. If your finances are in good shape, you can expect bonding rates between 1% and 5%. If you have to post a $20,000 bond, this would mean a premium in the range of $200-$1,000.
Your sales tax bond price is determined by your surety when you apply for the bonding. The surety needs to examine your personal and business finances. The most important factors include personal credit score, as well as business finances, assets and liquidity, and business expertise. If your finances are stable, you are likely to pay less for your bond.
For further information, our surety bond cost page offers a complete overview of how your bond price is set.
Can I get bonded with bad credit?
For businesses with problematic finances, getting bonded can be an uphill battle. Here at Lance Surety Bonds, we have extensive experience with bad credit bonding. Our Bad Credit Surety Bonds program was created to help applicants with low credit scores, tax liens, bankruptcies, or civil judgements to get their sales tax bond.
The bonding premiums are in the range of 15% and 17%. While the price is higher, you’re sure to get a top bonding rate with us. We collaborate with numerous A-rated, T-listed surety companies, so we can shop around for the best bonding option for you.
How do I get my Nevada sales tax bond?
Ready to start your bonding process? You can apply online today for a free Nevada sales tax bond quote.
If you want to get an exact bond price, you can submit a complete application, together with all needed financial documents. We will deliver your bond quote in no time.
Learn all about the bonding process on our How to Get Bonded page.
For any questions that you might have, don’t hesitate to call us at (877) 514-5146. Our bonding specialists will be happy to help you with your bonding application or the overall process.
How are bond claims handled for sales tax bonds?
When you get bonded, it’s important to grasp the difference between insurance and surety bonds. Your Nevada sales tax bond does not protect your company. Instead, it is an instrument for the state to ensure that you will pay all due taxes and fees to state and local authorities.
If you don’t make all payments in time and in their full amounts, a claim can be made on your bond. If the case is proven, the maximum penal sum of the bond can be used to reimburse the authorities in charge. Your surety is required to cover these costs at first, but you are liable to repay it fully afterwards.
Having a claim against your bond is a serious threat to your business. Besides the immediate financial harm, it can prevent you from getting bonded in the future. That’s why the best option is to avoid claims as much as possible. Follow all applicable laws, and, if a problem arises, work with your surety before the situation becomes grave.