Indiana Transient Merchant Bond

Any person or business selling goods, wares, merchandise, food, or services temporarily without a permanent fixed location in an Indiana county, city, or town needs this bond. This includes door-to-door salespeople, mobile food vendors, temporary pop-up retailers, street vendors, solicitors, and peddlers. The bond is typically required when you apply for a transient merchant or vendor license with the local county auditor or city/town clerk-treasurer.

The bond amount varies by municipality. Common amounts include $300 (Newcastle), $1,000 (Greenwood), and $5,000 or 10% of anticipated sales (Richmond). Since Indiana law IC 25-37-1 allows each county, city, or town to set its own bond requirements, you must check with the specific county auditor or city/town clerk-treasurer where you plan to operate to determine the exact bond amount required.

The bond protects the municipality and consumers by ensuring transient merchants comply with local ordinances and state laws, pay all applicable taxes and fines, and avoid fraudulent or deceptive business practices. If a vendor violates these requirements or harms consumers, claims can be filed against the bond up to its full amount. The surety company may pay valid claims, but the bonded merchant is ultimately responsible for reimbursing the surety.