Georgia Nonresident Contractor Performance Tax Bond

A Georgia Nonresident Contractor Tax Bond is a type of surety bond  required by the Georgia Department of Revenue (DOR) for out-of-state contractors working on projects in the state. The bond amount is 10% of the contract value and is required on projects over $10,000 in value. Out of state subcontractors with projects over $250,000 also must post this surety bond and register with the DOR. The full name of the bond is Georgia Nonresident Contractor Performance Tax Bond.

The cost of the surety bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150. Surety1 will shop its many markets to procure the right price at the right terms.

How to Get a Georgia Nonresident Contractor Tax Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Surety Bond will be shipped to the bond applicant.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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What are the requirements for non-resident contractors who wish to do business in the state of Georgia?

The Georgia Department of Revenue requires the following to be submitted to their department for non-residents whose contract on a project is at least $10,000:

• A $10 registration fee. This should be a postal money order or cashier’s bank check as a company or personal checks will not be accepted.
• Registering your business account online
• An Application for Authorization to Perform
• A Georgia Nonresident Contractor Tax Bond issued by a surety company licensed in Georgia
  • Note: Surety1 works with over a dozen “A” rated surety markets that are licensed in Georgia!

More information about these registration requirements can be found on the GA Dept. of Revenue website, as well as in Georgia Code Title 48, Chapter 13, Article 2.

What is the purpose of this surety bond?

This bond is required as a financial guarantee to the state of Georgia that the non-resident contractor will pay all associated taxes. If the contractor fails to pay their Georgia taxes, the state can make a claim against their Georgia Nonresident Contractor Tax Bond, which the surety company will pay out if settled. Unlike insurance, the bond principal (the non-resident contractor in this case) must repay the surety for any losses incurred due to claims.

This bond should be in an amount equal to 10% of the contract price, or the compensation to be received for each contract for non-resident contractors.