If you open an enterprise in the State of California subject to subject to the collection of sales tax you may be required to provide a California sales tax bond, also referred to as a California bond of seller The California Board of Equalization regulates sales tax security. Generally the BOE will not require an applicant for a seller’s permit to post a security deposit unless the applicant has previously established a history with the BOE of late payments or delinquencies, or the applicant is a corporation or LLC. The Revenue and Taxation Code (RTC) section 6701 authorizes the BOE to require “any person” subject to sales and use tax law to post a California sales tax bond. The minimum surety bond requirement is $2,000 and the maximum $50,000. The bond guarantees that the principal will pay all or any amount required to be collected, including interest and penalty(ies) which become due under the Sales and Use Tax Laws or Ordinances. Surety One, Inc., will issue these for all applicants regardless of credit condition. We also offer superlative fidelity bond coverages to protect against losses due to employee dishonesty. Visit the nation’s surety leader at SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com, for a California sales tax bond (California bond of seller) application or information about any surety bond product.
