Transient Tax Bond
Many States and Cities also have bond requirements for Transient Vendors or Transient Merchants to guarantee the payment of any taxes due from the sales of the Transient Vendor or Transient Merchant. Generally, this type of bond is for businesses that do not have a set location like a newsstand, merchandise stand, or door-to-door salesman.
The bond amount will be set by the Obligee (State, City, Town, etc.) that is requiring the bond. Most requirements are set at a standard amount and do not vary based on any kind of anticipated taxes due. In West Virginia, the bond for Transient Vendors is set at $500.00. In Kentucky, the bond for Transient Merchants is $1,000.00. Many Colorado local municipalities will require a $1,000.00 bond. The State of Mississippi requires a $500.00 Sales Tax Bond. However, in North Dakota, the bond amount will be determined by the Attorney General’s office.
Each Obligee should have their own sample bond form to review and should advise of the required bond limit. Both are very important to have before applying for the bond! Make sure to check with the Obligee to verify the required bond limit for your permit and ask for a copy of their sample bond form. This can help ensure that they get exactly what they are looking for without causing any delay to the permit application.
Many of these Transient Vendor/Merchant bond requests are for $10,000.00 or less and are usually approved with just a quick credit check. We also have several markets that will offer approval on these bonds with no credit! All we need is an application completed with basic information. The cost for bonds $10,000.00 and under will usually qualify for a minimum premium ranging from $150.00 to $500.00 annually. Non-standard rates are also available if necessary.
Bond Amount over $10,000.00? No Problem! We have programs for those too! Like most tax bonds, as the bond amount increases, so does the amount information needed to gain approval.
Generally, bonds up to $25,000.00 can be approved with just a credit check and bonds over $25,000.00 will require financial statements to be reviewed. Rates start at 1-2% for preferred applicants with strong personal credit and financial statements (if required) but are often rated between 3-5% of the required bond limit.
Call us at 1-888-518-8011 or apply online today!