The California Board of Equalization requires that any person selling taxable items must have a California Bond of Seller Surety Bond, also called a Sales Tax Surety Bond. This bond guarantees that sales tax will be paid to the state on time. The bond principal, which can be any business in California that does retail sales or rents goods and offers taxable services, is responsible for making sure the bond obligee (the person or entity who requires the bond, in this case the Board of Equalization) receives the proper payment of sales taxes.
The amount of the bond varies. It will be the lesser of:
The amount of the California Bond of Seller Surety Bond will never be more than $50,000. Even if the seller’s estimated average liability exceeds $50,000, the bond amount will be $50,000. This bond must also be issued by a surety licensed in California. Note: Surety1 is licensed in all 50 states and works with over a dozen “A” rated surety markets that are all licensed in California!
To obtain a California Bond of Seller Surety Bond, all you need to do is take a few minutes to fill out our free online application! Within one business day one of our licensed agents will contact you with a no-obligation quote for the price to obtain your bond (the “premium”). We generally write these bonds at a 1% rate with good credit! Once any necessary paperwork is signed and the premium payment is processed, your surety bond will be shipped to you via USPS Priority Mail (overnight shipping options also available).
At renewal: Approximately 2 months prior to the expiration of your bond, we will send you an invoice for the renewal premium (generally the same as the first year, depending on credit). Once the renewal premium payment has been processed, we will ship you the appropriate Renewal Bond or Continuation Certificate to submit to the CA State Board of Equalization to maintain your registration.
The surety bonding experts at Surety Solutions Insurance Services, Inc. (Surety1) are here to help you get bonded quickly and reliably. We work with over a dozen “A” rated surety markets to ensure we find you the lowest rate for your bond. We also maintain an A+ rating by the Better Business Bureau for our outstanding service!