California Bond of Seller
Secure your seller’s permit through this surety bond!
What is a California Bond of Seller?
It’s a seller’s permit requirement that must be submitted to the California Board of Equalization. The purpose of this bond is to ensure that the permittee will comply with Part 1, Division 2 of the California Revenue and Taxation Code and Chapter 2, Title 14, Part 2 of the California Code of Civil Procedure.
A seller needs this bond before he or she can sell or lease tangible personal property or properties that are subjected to sales tax. This also applies to the following:
- A seller that has a temporary or permanent office, salesroom, warehouse, or other places of business in California.
- A seller that employs an agent, canvasser, or sales representative who is operating in California.
- A seller that receives rental payments from the lease of tangible personal property in California.
The following persons and/or business entities who are applying for the said permit are required to obtain this bond:
- Corporations
- Individuals
- Limited Liability Companies (LLCs)
- Limited Liability Partnerships (LLPs)
- Limited Partnerships (LPs)
- Partnerships
- Married Co-ownerships
- Registered Domestic Partnerships
- Organizations
How does a California Bond of Seller work?
The Principal (seller) and the Surety (the party who will issue the bond) are bounded unto the Obligee (State of California). Through this bond, the Obligee will be guaranteed of the Principal’s compliance to his or her lawful obligations. In the event of a default committed by the Principal, the Obligee will be assured of compensation through a bond claim.
The Surety will perform the necessary thorough investigation to determine the validity of the claim before any payment is made. The Surety will check if the claim is covered by the bond. During the course of the investigation, the Surety will protect the rights of both the Principal and the Obligee.
If the claim is valid, the Surety will indemnify the Obligee. The Principal must reimburse the Surety once the latter has paid the Obligee.
How much does a California Bond of Seller cost?
The bond cost will depend on the seller’s credit score. It will range from 1.5% to 8% of the bond amount.
The bond amount will be determined by the California Board of Equalization.
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get a California Bond of Seller?
One of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
Your application will be processed as soon as we’ve received it. The next step is the underwriting process. An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the prequalification process is fulfilled, we will issue the bond and send it to you!
Ready to apply? START HERE!
