For many businesses based in Los Angeles, obtaining a license surety bond is a common criterion before they can launch their operations. The authorities requiring the bonding can be city, state or federal ones.
Most Popular Surety Bonds in California
Contractors in Los Angeles, just like in the rest of California, have to get licensed with the California Contractors State License Board. Posting a $15,000 bond is a part of the process.
Auto dealers in California undergo a licensing process with the state Department of Motor Vehicles. Retail dealers have to post a $50,000 surety bond, while motorcycle, all-terrain and wholesale-only dealers have to obtain a $10,000 bond.
Immigration consultants in California have to obtain a $100,000 surety bond. They have to present it to the Secretary of State.
Fuel operators in Los Angeles and the whole of California need to get a fuel tax bond. It guarantees their due payment of taxes on fuel sales. They have to present it to the California Board of Equalization.
Los Angeles freight brokers need to post a $75,000 surety bond, just like all brokers in the country. The licensing process is regulated by the Federal Motor Carrier Safety Administration.
Overview of Los Angeles surety bonds
Surety bonds in Los Angeles work like a three-party contract. Your business is the principal that needs the bonding. The relevant authority that imposes the bonding is the obligee. The third party is the surety, which provides the financial backing.
The most commonly used California surety bonds are license bonds. However, Los Angeles businesses and individuals may also need to post contract bonds and court bonds in certain cases. For example, if you are a construction professional, you may need a contract bond to bid on projects. As for court bonds, they may be required if you act as a fiduciary, or if you want to bring a case to an appeal court.
Your surety bond is not protection for your business. Instead, it functions as a safety net for the general public and the authorities. You can face a bond claim in case you do not follow your obligations under the law. Claimants can get a compensation up to the penal sum of your bond.
If you have more questions about Los Angeles surety bonds, you can reach us at (877) 514-5146. We’ll be happy to help.
Frequently Asked Questions
How much does a Los Angeles surety bond cost?
Your bond price is formulated on the basis of the bond amount that you have to post. You have to cover a bond premium, which is a small percentage of the bond amount. The rates are usually between 1% and 5% if your finances are in good shape.
Besides the bond amount, your bond cost depends on your personal credit score, business financials, and any liquidity and assets you can showcase. Your surety needs to examine these factors to assess the level of risk associated with bonding you. Your bond price will be lower if your overall profile is strong.
Our surety bond cost page is a great resource on how your bond price is determined.
Can I get a Los Angeles surety bond with bad credit?
In many cases, it’s possible to get bonded even if you have problematic finances. Lance Surety Bonds runs its Bad Credit Surety Bonds program for applicants with low credit scores, tax liens, bankruptcies, and civil judgements. Bad credit bonding is not available for contract bonds.
You can expect a bond rate in the range of 5% and 15%. Since the bonding risk is higher, the price is also increased to compensate for it. Still, you can get a top bonding rate with us. We forge close partnerships with a number of A-rated, T-listed surety companies, which allows us to shop around for you.
How do I get bonded in Los Angeles?
Getting your Los Angeles bond doesn’t need to be complicated. You can apply online today for a free quote that you get straight away. If you want an exact bond price, just complete the full application and attach your paperwork.
For more details on how the bonding process works, make sure to consult our How to Get Bonded page. If you still need help or clarifications, just call us at (877) 514-5146. Our bonding specialists will be happy to help you.