Tax preparers in California are required by the California Tax Education Council (CTEC) to obtain a $5,000 tax preparer bond from a surety company before they are licensed to practice in the state of California. This is outlined in Division 8, Chapter 14 of the Business and Professions Code. Tax preparers can buy a California tax preparer bond instantly online from us today with no credit check. Get started below and receive your official bond delivered to you in minutes.
Our prices for California Tax Preparer Bond starts at $25 for a 1 year term. If you are more confident about the longevity of your tax preparer practice, you can get a 2 year bond for $45, 3 year bond for $50 or a 4 year bond for $64. Select how many years you want and purchase instantly today. Our entire process takes 3 minutes.
Yes, according to CTEC Code 22258, certain types of preparers are exempt from CTEC’s bonding requirement. We list them below:
A California tax preparer bond exists to protect clients from any financial harm caused by a tax preparer's negligence, fraud, or misconduct. The California Tax Education Council (CTEC) regulates tax preparers in the state and requires the bond to ensure that tax preparers are held accountable for their actions and that the general public have a way to seek compensation if they are harmed by a preparer's actions. Let’s illustrate this with an example.
Jim has hired Nancy to help prepare taxes for his auto shop ahead of the tax deadline. Jim sent all relevant tax documents to Nancy ahead of time to ensure that his business’s taxes are filed on time, but Nancy forgets to submit the paperwork to the IRS! Jim’s business is then hit with a penalty of $10,000 for failing to file their taxes on time, so Jim looks up Nancy’s tax preparer license on CTEC and files a claim against her bond. Nancy’s surety company investigates the claim and determines that it is valid, so it pays out $5,000 to Jim. Note that even though Jim’s business lost $10,000 as a result of Nancy’s negligence, he was only able to receive repayment up to the bond limit of $5,000. The remaining $5,000 will have to settled in some other way, likely in a civil lawsuit. Nancy is also liable to pay $5,000 to the surety company, or they will cancel her bond, resulting in loss of her license. She must also report the claim to CTEC.
The process only takes 3 minutes. You can pay with credit card securely on our site and receive the bond emailed out to you within minutes. All requests placed by 4pm CST will be processed and emailed out to you the same day.
Just your name, address, contact information and business name. No SSN or credit check needed.
There are four steps to becoming a tax preparer within the state of California. Aspiring tax preparers must:
The entire process will take at least 4 weeks to complete, mostly contingent on how long it takes for you to complete the 60 hour qualifying education component. Here are the time by steps:
To understand how to avoid claims, it’s best to look at the most common violations that result in claims so that you, as a tax preparer, can avoid making the same mistakes.
To avoid these common violations, tax preparers should:
CTEC tax preparer licenses must be renewed annually as long as you are a practicing tax preparer. For renewal, tax preparers must:
For the surety bond requirement, you only need to renew the bond if it’s expiring/expired. For example, if your bond is a 2-year bond, then you only need to renew the bond after 2 years. This is separately managed from the licensing renewal, which needs to be done annually. If you bond with us, we’ll keep track of when your bond is expiring and notify you well ahead of time for renewal.
In California, a surety bond is often required by law to protect consumers and the general public, help guarantee performance on a contract, or ensure compliance with regulations. The exact reason you might need a surety bond depends on your situation—most commonly, individuals or businesses are required to obtain a surety bond if they are:
Certain professions (e.g., contractors, auto dealers, mortgage brokers) must post a surety bond to be licensed in California. The bond protects customers and the state by ensuring that the licensed professional will abide by regulations and fulfill their obligations ethically and legally.
If you are performing public works or government construction projects, you might be required to post a surety bond. This type of bond guarantees that you will complete the project as per the agreed contract and meet all legal and regulatory requirements.
In some professions where businesses or individuals handle clients’ money or assets (e.g., escrow agents, fiduciaries, notaries), California requires bonds to safeguard those funds or property in case of malpractice or misconduct.
Local jurisdictions sometimes mandate surety bonds for activities that carry particular risks—such as certain building, moving, or environmental permits—to ensure compliance with municipal codes and protect public safety and property.
Overall, surety bonds offer a layer of protection to the public and encourage businesses to act responsibly and abide by all applicable laws and regulations. If a bonded individual or business fails to fulfill their legal or contractual obligations, claims can be made against the bond to cover damages or losses up to the bond amount.
Obtaining a California surety bond is quick and straightforward with SuretyNow. Here’s how our experts help you through the nation’s fastest bonding process:
Contact the obligee requiring the bond to determine which California surety bond you need.
Fill out our simple application here at SuretyNow for instant review.
We’ll promptly evaluate your application and provide a competitive quote.
Once you pay the bond premium, we’ll issue your California surety bond right away.
Finalize the process by signing and filing your bond with the obligee.
Rely on SuretyNow for a seamless experience every time you need a California surety bond.
