North Dakota adds surety bond requirement for business taxes

North Dakota has added surety bond requirements for business taxes

Signed into law on April 18th, 2013, North Dakota HB 1106 requires that professionals who work as tax managers for limited liability businesses post a tax surety bond to guarantee that they will pay all taxes owed to the state. In addition to the surety requirement, tax managers in these roles will be personally liable for taxes that go unpaid.

In Section 11 of the bill, the surety requirement reads as such:

“If the officers, governors, or managers elect not to be personally liable for the failure to file the required returns or to pay the tax due, the corporation or limited liability company must make a cash deposit or post with the commissioner a bond or undertaking executed by a surety company authorized to do business in this state. The cash deposit, bond, or undertaking must be in an amount equal to the estimated annual tax liability of the corporation or limited liability company.”

To read the full text of the law, click here.

If you need a surety bond in North Dakota or any other state, contact online 24/7 or by phone at 1 (800) 308-4358 Monday through Friday, 8 a.m. to 7 p.m. CST. You’ll be connected with an expert surety specialist who will walk you through each step of the bonding process.

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About the Author

Jon Gottschalk
Jon Gottschalk is the Senior Marketing Director for and regularly blogs at the Surety Bond Insider to keep consumers informed on new legislation and updates in the commercial surety industry. He is also a licensed property & casualty insurance producer in Missouri.