SURETY BONDS

Remember, even though your business venture may initially be small, you are still required to comply with the same city, state, and federal regulations as any other similar business, small, large or mega-large.   Operating a business comes with a number of obligations.  The Small Business Administration, the Chamber of Commerce, a lawyer, City Council, a trade school, training program, or a pertinent service organization may be able to help with the process and required documents such as insurance and surety bonds. Insurance and surety bonds may be purchased from the same licensed agency; they are quite different in costs and function.  Insurance is purchased to protect the policy holder.  Surety bonds are purchased to protect the consumer.  Bonding regulations vary from state to state, but, specifically, surety bonds affirm that the holder will act in good faith.  The California vehicle code, for example, states that the bond holder, “...will not practice any fraud or make any fraudulent representation which will cause a monetary loss to a purchaser, seller, financing agency, or governmental agency”.  Most any business dealing with the public and money is required to be bonded.   Among these are auto dealers.  Applicants must apply and file the auto dealer surety bonds through their state; approval comes through the Attorney General’s office.  Failing to acquire the proper new or used car dealer bond or allowing the car dealer bond to lapse will result in a suspension of license.  In California, all sellers of autos, recreational vehicles, motorcycles, new or used, must be bonded in the amount of $50,000.  This is in compliance with the Financial Responsibility requirement and is essential for licensing.  Auto Dealer Bonds premiums cost a fraction of the actual surety bond amount.  Applicants provide personal and business financial information, and bonding and licensing can take up to 120 days to complete. Auto dealers can expect the cost for these performance bonds to go down as their business grows.  An unblemished record, longevity, credit scores, and financial solvency will also affect the surety bonds premium. Always do business with a reputable surety bond agent, such as Surety EZ, Cal-Society Insurance Services, Inc.  They will make the process of auto dealer bonding quick, easy, and affordable.  With over 10 years of bonding service in most states, Surety EZ can offer competitive pricing and will work with bad credit issues.  Find out how Surety EZ can serve your surety Bond requirements.
AUTHOR INFO Commercial Surety Bonds are required by state, county, city, or other governing body.  They guarantee that the business will be conducted in accordance with the laws, ordinance, or regulations  To obtain a used car dealer’s license you must present a Used Car Dealer Bond when you submit your application.

Best Personal Web Hosting

Business: Best Personal Web Hosting (Mon Sep 26th, 2011, by lunarpages)

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