Tax preparation service companies and their franchisees that enter into contracts with taxpayers to pay additional tax liability, penalties, or interest imposed by a taxing authority as a result of an error of the tax preparation service. Required when: Entering into a contract with a taxpayer to provide a guarantee o…
Overview
What it is.
Tax preparation service companies and their franchisees that enter into contracts with taxpayers to pay additional tax liability, penalties, or interest imposed by a taxing authority as a result of an error of the tax preparation service. Required when: Entering into a contract with a taxpayer to provide a guarantee o…
Who usually needs it
Tax preparation service companies and their franchisees that enter into contracts with taxpayers to pay additional tax liability, penalties, or interest imposed by a taxing authority as a result of an error of the tax preparation service.
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license 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. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
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.
StateTNBond amountThe penal sum is determined by the commissioner, but must be not less than $100…Term lengthContinuousObligeeTennessee Department of Commerce and InsuranceRenewalThe bond is a continuous obligation and remains in full force until terminated or cancelled by the surety or the principal, typically requiring 60 days' written notice to the Department.Bond classLicense BondCategoryInsuranceBondTax Preparation Service Company BondStatutory referenceTenn. Code Ann. § 56-7-101(b)(3)(A)JurisdictionState
