A number of Sacramento companies and individuals need to get bonded to conduct their activities in accordance with the law. License bonds are the most commonly required ones.
Most Popular Surety Bonds in Sacramento
Most California auto dealers need a $50,000 bond. That’s one of the prerequisites to getting your license from the state Department of Motor Vehicles. A $10,000 bond is required from motorcycle, ATV and wholesale dealers.
If you’re a Sacramento contractor who wants to work on projects that are above $500, you need a license from the California Contractors State Licensing Board (CSLB). Posting a $15,000 bond is one of the main requirements.
Liquor sellers in Sacramento, as in the rest of California, may need to get a bond as required by the state’s Board of Equalization. The bond amount is set on an individual basis when you apply with the Board.
The Federal Motor Carrier Safety Administration requires all U.S. brokers to post a $75,000 bond.
If you want to run an insurance company in Sacramento, you need a California license from the Department of Insurance’s Producer Licensing Bureau. The bond amount is $10,000.
Overview of Sacramento surety bonds
Surety bonds in Sacramento, as in the whole of the U.S., represent a contractual agreement between three parties. The principal is your business or yourself. The authority that imposes the bonding requirement it is the obligee. The surety is the bond underwriter. Bonds guarantee your legal compliance. They ensure that a harmed party can seek a proper compensation via a bond claim if you transgress from your legal obligations.
Besides license bonds, you may also need to post contract bonds in Sacramento. They are required of construction specialists who want to bid on public and private projects. For example, the City of Sacramento may ask you to post payment and performance bonds.
In some cases, you may have to get court bonds. You may need them if you want to bring a court case to a higher instance, or if you have to act as a fiduciary for another person’s assets.
Need more details about Sacramento surety bonds? Just call us at (877) 514-5146, and our experts will be happy to assist you.
Questions about Surety Bonds in Sacramento, California
How much does it cost to get bonded?
The bond amount you need to post is set by the relevant authorities in the state, municipality or city you’re based in. To get bonded, you only have to pay a bond premium. In many cases, it is between 1% and 5%. The percentage depends on the bond type that you need and on your personal and business finances.
The factors that determine your surety bond cost include your credit score, business documents, and any other assets you have. Your surety examines them to assess how risky it is to get you bonded. Your bond price is lower if your application is solid.
What if I have bad credit?
It is possible to get bonded even if you have problematic finances. Our Bad Credit Surety Bonds program is designed for applicants with low credit scores, tax liens, bankruptcies, and civil judgements. It is not available only for contract bonds.
The bond price is higher here, in the range of 5% and 15%, which compensates for the higher risk involved. Since we work with numerous A-rated, T-listed surety companies, we can still get you a great bonding rate whatever your credit score is.
How do I get my Sacramento surety bond?
If you want to learn more about how bonding works, make sure to check out our How to Get Bonded page, or reach us at (877) 514-5146.