Surety bonds are required for a number of roles and professions in the State of Mississippi. If you need to purchase performance bonds, payment bonds, construction bonds, court bonds or commercial bonds in order to take the next step on your career ladder or act as a fiduciary, our bond experts can help you find the lowest possible rate for your bond needs.
Types of Surety Bonds in Mississippi
There are three main types of surety bonds available in Mississippi. These are:
- Commercial bonds - also known as license and permit bonds
- Contract bonds - sometimes referred to as construction bonds or bid bonds
- Court bonds
Commercial bonds are commonly required when applying for a business license. For example, if you want to work as an auto dealer, freight broker, mortgage broker, contractor or other professional, you’ll need to purchase a commercial bond before you can get your license and start trading.
Contract bonds are used when contractors bid on construction projects. Contractors are required to purchase contract, or construction bonds, before they bid on a project. If the job subsequently falls through, the bond can be used to protect the client from financial losses.
Court bonds are required when a person is appointed a guardian or fiduciary by a court. For example, in the case of probate. You may also need to purchase a court bond if you appeal a court judgment.
Looking for a specific bond? Use the table below to find the exact bond you need. Complete the short application form to receive a free quote.
Surety Bond Requirements in Mississippi
Surety bonds are used across the US to protect the public from financial losses that may result from unscrupulous or fraudulent business practices. Surety bond requirements vary state by state, so it’s important to check the rules in your area before applying for your bond.
In the State of Mississippi, surety bonds are required for a range of roles and professions. All Mississippi surety bonds are essentially agreements between three parties. These parties are known as the obligee, the surety and the principal.
The principal is the party that is required to get bonded. The obligee is the party that requires the bond (often a licensing body or government office) and that is paid in the event of a default. The surety is the party that assumes the obligation if the principal cannot.
Because bond requirements vary between states and between professions, it’s important to check with your obligee (the body that has asked you to get bonded) before purchasing your bond. They’ll be able to tell you the bond amount and bond form required.
How to Get a Mississippi Surety Bond
To get a surety bond in Mississippi, you’ll need to complete the following steps.
Apply for Your Bond
The first thing you’ll need to do when purchasing a surety bond in Mississippi is to fill in our brief online application form. You’ll need to provide us with basic contact information and let us know the type of bond you need and the bond amount you require.
Get a Bond Rate
When we receive your completed application, we’ll start searching for the lowest possible rate for your bond. We’ll also provide you with a free surety bond quote outlining your surety bond cost and give you further information on the bonding process.
Buy Your Bond
If you’re happy with your quoted surety bond cost, simply pay your premium and you’ll be bonded. Once you’ve made your payment, you’ll receive your bond via email and we’ll also provide you with a paper copy if you need one.
Have additional questions about getting bonded? See our How to Get Bonded guide for a more detailed breakdown of the bonding process.
Would you like to know how the cost of your bond is determined? Our “How Much Does a Surety Bond Cost?” guide will provide you with all the necessary information about how bond rates are calculated and which factors influence your rate.
Mississippi Surety Bond Costs
Your bond cost, also known as the bond premium, is the amount you’ll need to pay to get bonded. It’s calculated as a fraction of the total bond amount. The exact cost of your bond will depend on your financial situation and your bond requirements.
In general, the better your credit score is, the lower your bond premium will be. If you have bad credit, you’ll find your bond cost is higher.
Thanks to the extensive network of A-rated and Treasury Listed surety bond companies we work with, we’re able to find the most competitive rates around. To find out exactly how much your surety bond will cost, fill in our quick online form for a free quote.
Most Popular Surety Bonds in Mississippi
A new motor vehicle dealer in Mississippi must obtain a $25,000 auto dealer bond. This covers one location. If they have multiple locations, they can obtain a $100,000 blanket motor vehicle dealer bond covering all premises. This bond must be renewed yearly along with their dealer license.
The state Department of Revenue requires wholesale dealers in Mississippi to obtain a $25,000 bond in order to get licensed.
Contractors in a number of cities and counties in Mississippi are required to get a contractor license bond before they can start trading. These bonds vary between $5,000 and $10,000 depending on location.
Money transmitters in Mississippi must purchase a money transmitter bond of at least $25,000. The amount of the bond can be as high as $500,000 depending on the licensee’s outstanding money transmissions in the state.
The initial bond for mortgage brokers in Mississippi is set at $25,000. When a broker renews their license, the broker bond amount may be reduced to $20,000 or $15,000 depending on the volume of loans closed.
The Department of Revenue requires businesses that sell items that are taxable to obtain a sales tax bond. The sales tax bond guarantees that these retailers will pay their taxes and comply with the applicable provisions of the Mississippi Code Annotated.
Telephone solicitors in Mississippi must get a $50,000 bond to obtain a permit to operate in the state from the Public Service Commission.
Anyone who wants to operate as an auctioneer in the state must post a $10,000 auctioneer bond to the Mississippi Auctioneers Commission.
Can I Get a Mississippi Surety Bond with Bad Credit?
A poor credit score is one of the most common reasons for a bond application to be rejected. However, if you have bad credit, you may still be able to get bonded through our bad credit surety bonds program. The program allows high-risk applicants access to the majority of Mississippi bonds despite their credit issues.
The bad credit surety bond program is specifically designed for people with a bad credit score who otherwise would struggle to get the bond they need. As surety bond companies assume a higher risk when underwriting bad credit surety bonds, these bonds command higher premiums, typically in the range of 5% to 15%.
You may be able to reduce the cost of your bad credit surety bond by submitting additional information about you and your business. Sureties look more favorably upon applicants who have strong financial profiles, liquid assets, or are experienced in their field, so you may find you can secure a lower premium.
Are you looking to apply for a business license in Mississippi? See our licensing guides below for all the information you need about the process.