Quick Guide to Sales Tax Surety Bonds Purpose : Guarantees payment of sales taxes to government agencies Parties Involved : Principal (business), Obligee (government), Surety (bond provider) Typical Cost : 1-5% of bond amount annually (based on credit) Common Requirements : Retailers, e-commerce businesses, alcohol/tobacco sellers Bond Amounts : $1,000-$50,000 (varies by state and sales volume) Many states wont hand over a business license or sales tax permit without this protection in place
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