If you are a new business registering for a sales and use tax permit, you may be asked to provide either a cash or surety bond. A bond is a guarantee that you will report and pay collected sales tax.
Cash bonds are held for a period of 5 years. If the business has established a good record of return filing and payment. Taxpayers with 2 years of accurate and timely filing can request a review of the account and the bond may be refunded.
Surety bonds are continuous in North Dakota until the permit is cancelled. Contact our office to determine the type and financial coverage needed to secure your permit.
- A corporation or limited liability company may be asked to post a surety bond in which its corporate officer(s) or LLC governor or manager elects to not be personally liable for the payment or filing of sales and use tax or withholding returns. A corporate officer liability bond must be sustained as long as the account is active or until the Declaration of Managers, Members, Governor's, Partners and Corporate Officers is updated.