Sales Tax Bond

[h2o]

I own a wholesale supplier company and certain states are requiring us to have a sales tax bond. One of the states requires one in the amount of $250,000. My company has been around for 15 years and we have strong net worth and could supply CPA-prepared business financials. Do you think it would be difficult to obtain such a large bond as well as the additional bonds we need?

[lifeisgood]

Fromt the sound of it, your company appears to be solid and it shouldn't be a problem obtaining your bonds. The surety will need to review your business financials as well as the personal financial statements of any owners with more then 5% ownership.

[Bond Magician]

Originally Posted by lifeisgood

Fromt the sound of it, your company appears to be solid and it shouldn't be a problem obtaining your bonds. The surety will need to review your business financials as well as the personal financial statements of any owners with more then 5% ownership.

So, if one person owns less than 5% of the business, their personal credit will not come into play?

[lifeisgood]

That is correct. Any owner with less than 5% ownership does not need to provide any financial information because the surety does not require it.

[Bond Magician]

Originally Posted by lifeisgood

That is correct. Any owner with less than 5% ownership does not need to provide any financial information because the surety does not require it.

If my credit is great, but my partner's is less than perfect, can we change ownership so that I am the sole owner, and then apply again to get a better rate?