Here at Safeline Surety Bond, we help business owners and licensed practitioners from all walks of life. Our Surety Bonds are tailored to meet your industry’s specific needs. By law, many practitioners and businesses are required to obtain a minimum bond to receive their license. Our bond specialists can assure you that your bond can satisfy these requirements implemented by your specific licensing board.
Not all commercial bonds are required to run a business. Some business owners choose to bond their business in an act of good faith. Customers and clients alike earn peace of mind when they deal with a bonded business. It gains their trust and shows them that a bonded business has integrity.
Costs of Business Bonds
Most commercial bonds are seen as low-risk instruments. This means that many commercial bonds do not require a financial background and credit check. This makes it easier to get certain commercial bonds, and the premiums are fixed at a market price. This fixed price can be between 1–3% of the bond amount. That can vary depending on the specific bond, the risk of the bond, and the length of terms.
If the bond is not set at a fixed market price and needs an underwriter, then the price can fluctuate due to other factors. This includes a full credit review. Applicants with higher credit ratings will be subject to better rates. Many of these bonds can be submitted again if your credit rating improves and you can capitalize on better rates in the future.
Common Commercial Bonds
This bond is for businesses that sell alcohol. The bond is required by the California Alcohol and Tobacco Tax and Trade Bureau (TTB) for any business who wishes to obtain a liquor license.
The Federal Motor Carrier Safety Commission (FMCSA) requires freight owners to carry the bonds to ensure they will properly pay their carriers.
Some professional licenses or permits require people to get a specific bond before they are granted the certificate.
The California Department of Motor Vehicles will require you to buy a Lost Title Bond before they issue a replacement title.
The California Department of Motor Vehicles requires dealership owners to carry a bond to guarantee the company will pay all applicable taxes, uphold industry regulation standards, and more.
The State Board of Equalization requires all fuel suppliers, distributors, or importers to carry a bond to ensure proper taxes are paid by the company.