Illinois Sales Tax Bond

Overview

Illinois builds its retailer security requirement into the registration section of the Retailers' Occupation Tax Act. Under 35 ILCS 120/2a, the Department of Revenue may require an applicant for a certificate of registration to furnish a bond from a surety company authorized to do business in Illinois — or one of several statutory alternatives — conditioned on the applicant paying the State all moneys becoming due under the Act and any other tax law the registration covers. The statute also tells the Department what to weigh in deciding whether to demand security, including whether the owners or officers were connected to another retailer in default to the Department.

Who Needs This Bond?

Applicants for an Illinois certificate of registration whom the Department of Revenue has directed to furnish security need this bond. The statute makes the requirement discretionary — the Department 'may require' a bond at the time of application — and directs it to consider, among other things, whether an owner, partner, LLC manager or member, or corporate officer of the applicant has been associated with another retailer in default for moneys due under the Act or another tax act the Department administers, or with a retailer whose certificate was revoked. If your registration notice from the Department calls for a bond, this is the instrument it describes.

What is this Bond For?

The bond's statutory condition is payment: it guarantees the applicant will pay to the State of Illinois all moneys becoming due under the Retailers' Occupation Tax Act and under any other state tax law or municipal or county tax ordinance the certificate of registration lets the applicant operate under without registering separately. If the retailer fails to remit, the Department can proceed against the bond to recover the unpaid amounts. The protection runs entirely to the state — the bond is a compliance guarantee, not coverage for the business.

When is it Required?

The demand comes at the time of filing the registration application, which is when 35 ILCS 120/2a authorizes the Department to require the security. A retailer cannot simply substitute promises for the demanded bond: until the required security is furnished, the registration the retailer needs to lawfully make taxable sales in Illinois is not in place. Retailers whose history triggers the statutory risk factors should expect the requirement and build the bond into their registration timeline.

Where Does it Apply?

This is a statewide Illinois requirement administered by the Illinois Department of Revenue under the Retailers' Occupation Tax Act. It applies to retailers registering anywhere in the state, and the bond must come from a surety company authorized to do business in Illinois. The statute also permits alternatives: an irrevocable bank letter of credit, a bond signed by two personal sureties who file sworn net-asset statements with the Department, or a bond secured by an assignment of a bank account, certificate of deposit, stocks, or bonds.

How to Buy Online

Click 'Buy This Bond Online' on this page to open the secure surety portal in a new tab. Have your Department of Revenue notice available — it states the security amount fixed for your account, and the bond must be written to match. Complete the application, review the documents, and pay online; your executed bond is ready to file with the Department.

Why Bond Titan?

Bond Titan is powered by The Southern Agency, a licensed surety agency, and the statutory basis for this bond is linked in the Official Sources section below directly to the Illinois General Assembly's website. Check the statute yourself, then complete your purchase online in minutes and keep your registration on track.

Official Sources

The requirements described on this page are verified against the official sources below.

• Department may require a surety bond (or statutory alternatives) at registration; bond conditioned on paying all moneys due; risk factors the Department must consider: Illinois Retailers' Occupation Tax Act, 35 ILCS 120/2a (verified July 16, 2026)