A sales tax bond promises your state that you will pay in the sales tax you collect. Not every seller needs one. Run through this quick checklist to see if it applies to you.

Are you a new business?

States often ask new sellers for a bond, because you have no tax history yet. The bond gives the state comfort while you build a track record. If you just got your sales tax permit, a bond may be part of it.

Did you pay late before?

If your business paid sales tax late in the past, the state may require a bond going forward. It is their way of protecting the tax money until you rebuild trust with a clean payment history.

Are you in a watched industry?

Some industries are higher risk for unpaid tax, so states require bonds more often. If you sell in one of these, check your permit rules.

What the bond costs

You pay a small percent of the bond amount, based on your credit. Many small sellers pay only a modest yearly premium. The bond amount is based on the tax you are expected to collect.

How to make it go away

Here is the good news. In many states, the bond requirement is temporary. Pay your sales tax on time for a set period, and the state may drop the bond at renewal. Treat the tax you collect as the state's money, set it aside, and pay on time.

If your state asked for a sales tax bond, send us the amount on the notice. We will quote you fast and get you compliant so you can keep selling.

Related guide: Read the Sales Tax Bond guide.