Businesses in Chicago often need to obtain a license surety bond. They need to get bonded to meet licensing requirements set by city, state or federal authorities.
Most Popular Surety Bonds in Illinois
Illinois auto dealers, including those based in Chicago, need to get licensed with the Secretary of State. Posting a $20,000 surety bond is one of the main criteria.
Many contractors in Illinois have to post a bond to get licensed as construction professionals. The bonds are required both on state and city level. For example, plumbers have to obtain a bond to meet the requirements of the City of Chicago.
Businesses based in Chicago, Illinois, have to post a sales tax bond with the state Department of Revenue. The bond amount depends on the volume of sales.
Mortgage brokers in Chicago have to post a $25,000 with the state Department of Financial & Professional Regulation.
All freight brokers across the U.S. need to get licensed with the Federal Motor Carrier Safety Administration. The licensing process involves posting a $75,000 bond.
Overview of Chicago surety bonds
Chicago surety bonds function like a contractual agreement between three parties. The principal is the party that needs the bond. The authority that requires the bonding is the obligee. The surety is the third entity which ensures the bonding.
License bonds are often required of Chicago businesses. Other types of bonds that you may need include contract bonds and court bonds. If you are a construction professional who wants to participate in project bidding, you’re likely to need contract bonds. Individuals who want to act as fiduciaries, or to bring an appeal to a court, have to obtain a court bond.
The goal of surety bonds is to provide an extra layer of protection for the general public and relevant authorities. If you do not abide by applicable rules, you can face a bond claim. An affected party can demand a reimbursement up to the penal sum of your bond.
Do you need more details about Chicago surety bonds? You can reach us at (877) 514-5146, and we will help you with your questions.
Frequently Asked Questions
How much does a Chicago surety bond cost?
Your surety bond price depends on the bond amount you have to obtain. However, you need to cover only a part of this amount, called the bond premium. In the typical case, the rates are between 1% and 5% for applicants with good finances.
Besides the bond amount required from you, the bond cost is also determined on the basis of your personal and business finances. Your surety has to examine your personal credit score, business financials, as well as any liquidity and assets. That’s how it can judge the level of risk associated with bonding you. If you overall profile is stable, you can expect a lower bond price.
Do you have more questions about your bond cost? Our surety bond cost page is a detailed resource on the topic.
Can I get a surety bond with bad credit?
Lance Surety Bonds operates its Bad Credit Surety Bonds program to help applicants with problematic finances get the bond they need. If you have low credit scores, tax liens, bankruptcies, or civil judgements, this program can be of use. It’s applicable for most bond types except for contract bonds.
Since the risk in the bonding is increased, the bonding premiums are higher. The typical bad credit rates are between 5% and 15%. We have close partnerships with a number of A-rated, T-listed surety companies, which allows us to offer you a top bonding option.
How do I get bonded?
Getting your Chicago surety bond is not difficult. You can apply online today for a free, no-obligations quote. Do you want to see your exact price? Just complete the application and send over your documents. We will deliver it in no time.
Our How to Get Bonded page can provide you with detailed information. For further questions, just call us at (877) 514-5146. We are here to help.