What Is a Wyoming Contractor License Bond?
A contractor license bond is often required of Wyoming construction specialists, so that they can legally operate their business. A number of cities across the state have a bond requirement for contractors. Non-resident contractors operating in Wyoming must post a sales and use tax bond.
The Wyoming contractor license bond is there to protect the interests of contractors’ clients and the licensing bodies. A claim can be made on your bond if you break applicable rules or your contractual obligations.
Just like other surety bonds, the contractor bond is a three-party contract. Your contracting company is the principal. It needs to present the bond to the obligee, which is the state or city authority. Finally, the surety is the entity that backs your business with the bond.
Frequently Asked Questions
Who needs to obtain a Wyoming contractor license bond?
The state bonding requirements are applicable only to non-resident contractors who want to operate in Wyoming. They have to provide a sales and use tax bond to the Wyoming Department of Revenue. It guarantees that they will cover their due taxes on work they have executed in the state.
Many cities in the state also require contractors to post a Wyoming contractor license bond. They include Gillette, Lander, the Town of Jackson and Sheridan, among others. It’s best to inquire into the licensing requirements of your local authorities to get the most up-to-date information before you start the process.
How much does a Wyoming contractor license bond cost?
The price you need to pay for getting bonded is directly dependent on the bond amount required from you. The amounts required by cities are usually between $2,000 and $25,000, but for out-of-state contractors the sales and use tax bond amounts can vary.
The bond amount, or the penal sum, is not the actual price you have to cover to get bonded. In fact, you only need to pay a percentage of it, called the bond premium. The bond rates for standard bonding market applicants are between 1% and 5% of the amount. For a $10,000 bond, your bond price can be in the range of $100-$500.
How is your Wyoming contractor license bond price formulated? Along with the bond amount, it depends on your personal and business finances. If you can showcase a high personal credit score, and strong business finances, and assets and liquidity, your surety will see you as a low-risk applicant. This will lead to a lower bond price.
For a full overview of how your bond price is determined, read through our surety bond cost page.
|Location and Bond Type||Surety Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Lander City contractor license bond||$2,000||$100||$100||$100||$100-$200|
|Gillette City contractor license bond||$5,000||$100||$100-$150||$150-$250||$250-$500|
|Sheridan City plumbing, HVAC or electrical contractor, Town of Jackson contractor license bond||$10,000||$100-$150||$100-$300||$250-$500||$500-$1,000|
|Sheridan City plumbing, HVAC or electrical contractor, Town of Jackson contractor license bond||$25,000||$188-$375||$250-$750||$625-$1,250||$1,250-$2,500|
Can I get a bond with bad credit?
If you have a low credit score, tax liens, bankruptcies, or civil judgements, you can still get bonded with Lance Surety Bonds. We operate our Bad Credit Surety Bonds program to help contractors with problematic finances get their bond.
The bad credit bonding rates are in the range of 5%-10%. Since the bonding risk is higher, the premium reflects this. Still, you can be sure we will find the top rate for your case. We work with numerous A-rated, T-listed surety companies. This means that your bonding is not only secure, but it’s also the best bond for your case among many options.
How do I apply for a Wyoming contractor license bond?
It’s easy to start your bonding and licensing process. Just apply online today to get a free Wyoming contractor license bond quote. Want to know your exact bond price? Make sure to fill in the complete application and attach all the paperwork. We’ll get back to you with the price in no time.
If you want to learn more about how bonding works, you can consult our How to Get Bonded page for more details.
Lance Surety Bonds’ experts are here to help. If you need help with your application, or have further questions, don’t hesitate to call us at (877) 514-5146.
What happens in case of a claim?
If you don’t follow your contractual obligations and the rules set in the bond language, you can face a claim on your bond. Any harmed parties could be compensated, up to the penal sum of the bond. This means that if the claim is proven, you will have to reimburse them.
Since the surety guarantees for you, it will cover the costs at first. However, you need to repay it soon after. That’s why bond claims are to be avoided. They can harm your business not only financially, but also can prevent you from getting bonded and licensed in the future.
How do I get a Wyoming contractors license?
Construction contractors in Wyoming don’t need to get a state license. However, you may need a license from your city authority.
Non-resident contractors have to register with the Wyoming Department of Revenue. They have to provide a sales and use tax bond.