This bond guarantees that Chicago retailers will properly collect, report, and remit local sales and use taxes to the city. If a retailer fails to pay taxes owed, the city can file a claim against the bond to recover unpaid amounts. Bond amounts typically range from $5,000 to $10,000 based on projected tax liability a…
Overview
What it is.
This bond guarantees that Chicago retailers will properly collect, report, and remit local sales and use taxes to the city. If a retailer fails to pay taxes owed, the city can file a claim against the bond to recover unpaid amounts. Bond amounts typically range from $5,000 to $10,000 based on projected tax liability a…
Who usually needs it
Retailers operating in Chicago who are required by the city to secure payment of local sales and use taxes. This may include new businesses, businesses with prior tax non-compliance, or certain specialized retailers (e.g., alcohol, tobacco) as determined by the City of Chicago or Illinois Department of Revenue.
Pricing & timing
What to expect.
Generic pricing
Tax bonds guarantee payment of taxes or compliance with tax regulations. Typical Pricing:. • Standard tax bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. • Credit check: Required for most tax bonds. Common types include sales tax bonds, fuel tax bonds, and cigarette/tobacco tax bonds. Quick approval is typical for applicants with good credit. Some tax bonds…
Typical timeframe
Credit-based approval — typically 1–2 business days
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateILBond amount$5,000ObligeeCity of Chicago - Department of Business Affairs and Consumer ProtectionBond classTax BondCategoryRetail & SalesCityChicagoBondSales & Use Tax (Retailer) Bond - ChicagoPlain descriptionThis bond guarantees that Chicago retailers will properly collect, report, and remit local sales and use taxes to the city. If a retailer fails to pay taxes owed, the city can file a claim against the bond to recover un…Who needs this bondRetailers operating in Chicago who are required by the city to secure payment of local sales and use taxes. This may include new businesses, businesses with prior tax non-compliance, or certain specialized retailers (e.…
FAQ
Common questions.
Who needs a Sales & Use Tax Bond in Chicago?
Chicago retailers may be required to obtain this bond if they are starting a new business, have a history of tax non-compliance, or operate certain types of retail businesses (such as alcohol or tobacco sales). The Illinois Department of Revenue or City of Chicago determines the requirement based on projected sales tax liability, business size, and past filing history.
What does the Chicago Sales & Use Tax Bond cover?
This bond guarantees that retailers will properly collect, report, and remit local sales and use taxes to the City of Chicago. If a retailer fails to pay taxes owed, the city can file a claim against the bond to recover unpaid tax amounts, penalties, and interest up to the bond amount (typically $5,000-$10,000).
How much does the Chicago Sales & Use Tax Retailer Bond cost?
The bond amount typically ranges from $5,000 to $10,000 based on your business's projected tax liability and compliance history. The premium you pay (the actual cost) is a percentage of the bond amount, usually 1-10% annually. For example, a $5,000 bond might cost $50-$500 per year depending on your credit score and financial strength. Better credit results in lower rates.
