A number of different businesses in Austin, Texas, need to post surety bonds. A license surety bond is a typical licensing requirement, for example. The licensing process can be imposed by city, state or federal authorities.
Most Popular Surety Bonds in Texas
The Texas Department of Transportation regulates the activities of auto dealers in the state, including in Austin. Obtaining a $25,000 motor vehicle dealer bond is one of the prerequisites for getting licensed.
If you want to operate as a construction contractor in Austin, you may need to get a license bond from municipal or state bodies, or with the City of Austin. For example, you need a contractor license bond in order to get your permit as a contractor in the city. The bond amount is determined on a case-by-case basis.
The Texas Alcoholic Beverage Commission regulates the sale of alcohol in the state. If you want to sell liquor in Austin, you will need a state license and an alcohol tax bond. Its amount is based on your sales volume.
The Texas Comptroller of Public Accounts requires retailers in the state to get a sales tax bond. In this way, it guarantees due payment of taxes made on sales. The maximum bond amount is $100,000 and is determined on the basis of the business’ tax liability for a month.
Freight brokers from all states in the country need to post a $75,000 bond. They have to present it as a part of their licensing process with the Federal Motor Carrier Safety Administration.
Overview of surety bond requirements in Austin
If you have to get bonded in Austin, Texas, keep in mind that your bond will work similarly to other surety bonds. It represents a three-party contractual agreement. The principal is your business which has to obtain a bond. The obligee is the authority that imposes the bonding requirement. The third party that provides the bond is the surety.
The most common types of bonds you are likely to need in Austin are license bonds. However, you may also need to post a contract bond or a court bond. Contract bonds are required from construction contractors who want to bid on private or public projects. Court bonds, on the other hand, may be needed by fiduciaries and for bringing a court case to appeal.
As with all other surety bonds, your bond’s purpose is to protect relevant authorities and the citizens of your city or state. It guarantees that you will follow your legal obligations duly. In case you transgress from them, a harmed party can file a claim on your bond. The reimbursement they can receive is up to the penal sum of the bond.
Do you have any more questions? You can call us at (877) 514-5146 and we’ll help you out gladly.
Frequently Asked Questions
How much does an Austin, TX surety bond cost?
To get bonded, you need to cover a bond premium, which is typically in the range of 1%-5% of the bond amount you have to post. The bond amount depends on the authorities that require the bonding from you.
Your bond price also depends on your personal and business finances. When you apply with a surety, it examines your complete profile. It has to consider your personal credit score, business financials, and any liquidity and assets you may be able to showcase. The more stable your application is, the smaller your bond premium will be.
Need more information about the way in which your bond cost is formulated? Make sure to consult our surety bond cost page, which offers a detailed description.
Can I get bonded with bad credit in Austin?
If you are struggling with a low credit score, tax liens, bankruptcies, or civil judgements, you may still be able to get bonded with us. Lance Surety Bonds runs its Bad Credit Surety Bonds program to help applicants with problematic finances. It’s available for most bond types except contract bonds.
You can expect bonding premiums that are between 5% and 15%. The reason for the higher costs is that they have to compensate for the increased bonding risk. We can still find a top bonding rate for you because of our exclusive access to numerous A-rated, T-listed surety companies’ bonding programs.
How do I get my Austin surety bond?
Are you ready to start your bonding? You can apply online today for a hassle-free bond quote. Your exact bond price will be available once you complete your full application and send us your paperwork.
In case you need more details on the bonding process, our How to Get Bonded page is a thorough guide you can refer to. Plus, our bonding specialists are here to help - just call us at (877) 514-5146.