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What Is A Sales and Use Tax Bond?

A sales and use tax bond is required of retailers in many states. The surety bond is a form of insurance that you purchase that assures you will pay your business state taxes on time. It also serves as proof of financial responsibility and credibility — that you can and will manage your money properly. The specific times at which your taxes will be due varies by state.

Before retailers purchase a bond from an agency, they must submit themselves to a credit check, have their application approved, and go through other screening processes.

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