Many types of San Francisco companies and individuals have to obtain a surety bond. The most common case is that you need license bonds, so that you can obtain a license required by city, state or federal institutions.
Most Popular Surety Bonds in California
California contractors who want to perform work on projects above $500 have to get licensed with the Contractors State Licensing Board (CSLB). You have to obtain a $15,000 bond as a part of the process.
Similarly to auto dealerships in the rest of the state, San Francisco car businesses are required to post a $50,000 dealer bond. The licensing process is regulated by the California Department of Motor Vehicles. If you want to sell motorcycles, ATVs or wholesale only, you need a $10,000 bond.
San Francisco freight brokers have to get licensed with the Federal Motor Carrier Safety Administration, just like all brokers across the U.S. You need to obtain a $75,000 bond.
If you want to sell liquor in California, you may be required to post a bond to obtain your license. The state Board of Equalization decides the bonding criteria on a case-by-case basis.
Businesses in the pest control field have to get licensed with the Structural Pest Control Board of the California Department of Consumer Affairs. You have to obtain a $12,500 bond.
Overview of San Francisco surety bonds
Your San Francisco surety bond works like a three-party contract. You are the principal who needs a bond to meet certain legal requirements. The authority that requires it is the obligee. The surety is the third entity that provides the bond.
While license bonds are the bonds you’re likely to need most often, there are other types you should know of. If you are a construction specialist, you may need contract bonds to bid on projects. Performance bonds, for example, may be required of you by the San Francisco City and County Administration.
Other common types of bonds you may need are court bonds. If you have to take role of a fiduciary, or want to appeal a court case to a higher instance, you will need to post such a bond.
The purpose of surety bonds is to guarantee your legal compliance. They ensure a proper reimbursement to affected parties if you transgress from the law through bond claims.
Need more information about bonds? Reach us at (877) 514-5146 and we’ll help you out. [/question]
Frequently Asked Questions
How much does getting bonded cost?
Your bond price depends on the bond amount that you have to present to official bodies. However, you need to cover only a fraction of this amount, called the bond premium. It often is a few percents of the required amount. For applicants with good finances, the common bonding rates are between 1% and 5%. The percentage also varies between bond types.
But how exactly is your bond cost set? Your surety needs to examine your personal credit score, business finances, plus any liquidity and assets you may showcase. That’s how it assesses the level of risk associated with bonding you. Your bond price will be lower if your profile is stable.
Make sure to consult our surety bond cost page for further details on the bond price formation.
Can I get bonded with bad credit?
Even if your finances are problematic, you may still get bonded with Lance Surety Bonds. Our Bad Credit Surety Bonds program is created for applicants with issues such as low credit scores, tax liens, bankruptcies, and civil judgements. For contract bonds, however, you cannot use this option.
Bad credit bond rates are higher, typically between 5% and 15%. However, we can still offer you a top bonding price. We foster close partnerships with a number of A-rated, T-listed surety companies, which means we can choose the best option for your case.
How do I get my San Francisco surety bond?
In case you want to consult your exact bond price, you just need to complete our full application. You also need to provide all your business and financial documents, so that we can examine your profile.
Do you want to learn more about the bonding process? Our How to Get Bonded page can give you a full overview. For any other questions you may have, just call us at (877) 514-5146.