A number of companies and individuals in Seattle are required to obtain a surety bond. License bonds are the most popular type of bonds that you may need in the Emerald City.
Most Popular Surety Bonds in Seattle
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 Seattle surety bonds
Surety bonds in Seattle function like in the rest of the country. They are a three-party contractual agreement. You or your business that is required to get a bond are the principal. The relevant authority that requires it is the obligee. Finally, the surety is the party that underwrites the bond.
Besides license bonds, you may also need two other types of bonds in Seattle. If you want to bid on construction projects, you will probably have to obtain contract bonds. In other cases, you may need court bonds. They are required if you want to bring a court case to a higher instance, or if you have to act as a fiduciary.
Surety bonds guarantee your legal compliance. They are an extra layer of protection for the authorities, as well as for the general public. In case you transgress from the law, a bond claim can be made to ensure a proper compensation to affected parties.
Have more questions about bonds in Seattle? Just call us at (877) 514-5146, and we’ll be happy to assist you.
Frequently Asked Questions
How much does getting bonded cost?
Your surety bond cost is determined on the basis of the bond amount that is required from you. Your bond premium, however, is only a few percents from that amount. Depending on the bond type that you need and the strength of your finances, the bonding rates are often between 1% and 5%.
When you apply for your bond, your surety takes a close look at your personal and business finances. Your credit score, business papers, plus any liquidity and assets are all factors that matter in the formation of your bond price. This is how the bonding risk involved is calculated. If your overall profile is stable, you can expect a lower price.
Can I get bonded with bad credit?
Need to obtain a bond, but are struggling with problematic finances? Our Bad Credit Surety Bonds program is designed for applicants with issues such as low credit scores, tax liens, bankruptcies, and civil judgements. You can obtain most bonds except for contract bonds.
Bad credit bond premiums are in the range between 5% and 15%. The higher price compensates for the increased bonding risk. We foster close partnerships with a number of A-rated, T-listed surety companies, so we can still work out a top rate.
How do I get my Seattle surety bond?
If you want to receive your exact bond price, you need to complete our full application and send us your paperwork. We will then deliver it in no time.
Need more details about the bonding process? Learn its intricacies from our detailed How to Get Bonded page. For further questions, just call us at (877) 514-5146.