SuretyBonds.com brings you this basic guide to bonding. Check back soon for additional educational videos that explain the surety market.
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Before attempting to satisfy the appetites of audiences hungry for amusement, nonresident entertainers much first satisfy the state’s appetite for verifiable financial credibility. The Wisconsin Department of Revenue has released a document that outlines surety bond expectations for nonresident entertainers.
The state defines a nonresident entertainer as “a nonresident person (a person who is not a legal resident of Wisconsin) or a foreign corporation, partnership or other entity that’s not regularly engaged in business in Wisconsin who furnishes amusement, entertainment, public speaking services or performs in sporting events in Wisconsin for a consideration.”
If the total contract price for a performance exceeds $3,200, a nonresident entertainer must file either a surety bond or cash deposit with the Wisconsin Department of Revenue at least seven days before the performance. The amount of the bond or deposit is typically 6% of the total contract price.
Download the Wisconsin Nonresident Entertainer Surety Bond.
Nonresident entertainers will mail the original copy of their Wisconsin surety bond to:
Wisconsin Department of Revenue
P.O. Box 8906
Madison WI 53708
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Learning how surety bonds benefit your business now now will allow you to use bonding to your advantage later on.
Bonding promotes successful enterprises in three key ways:
- by holding business owners to higher industry standards
- by keeping unqualified individuals from gaining access to certain professions, thus limiting competition
- by strengthening consumer confidence
Surety bonds allow consumers to hold business owners accountable for their professional performance. Consumers can avoid losing money at the hands of dishonest business professionals by making a claim against their bonds.
For example, say an auto dealer used fraudulent selling tactics and a claim was made on the bond. The surety would use the bond’s funds to pay the claim.
Since surety providers can choose not to bond risky applicants, this infraction could keep the auto dealer from getting a bond in the future. Without the bond, the auto dealer cannot get a license to operate legally, which, in turn, protects consumers from encountering a similar situation in the future.
On the flip side of this discussion, getting bonded also strengthens consumer relations. The bonding process requires a neutral third party (the surety) to verify a principal’s financial stability. When a company is licensed and bonded, consumers know it has met the strict financial guidelines required for getting a bond. Furthermore, your customers will feel confident knowing your business has the financial guarantee of a bond.
One of the biggest benefits of having surety bond knowledge is being able to get through the application process quicker and easier. When planning to start a new business, you have plenty of time-consuming concerns stressing you out. Don’t let bonding be one of them.
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Effective January 1, the Minnesota Construction Codes and Licensing Division of the Department of Labor and Industry now requires mechanical contractors to file their $25,000 surety bonds for two-year terms instead of one-year terms.
Minnesota Statutes 326.992 requires a $25,000 license and permit bond to be filed by those contracted to install certain mechanical equipment. Mechanical professionals subject to the Minnesota surety bond requirement include those who work with
- air conditioning
- ductwork
- fuel burning
- furnaces
- gas piping
- hot water heat
- refrigeration
- ventilation
According to a June 27, 2003, memorandum that outlines the statewide surety bond and filing fee requirements for mechanical work:
This bond is for the benefit of persons suffering financial loss by reason of the contractor’s failure to comply with the requirements of the State Mechanical Code. Furthermore, a statewide surety bond will eliminate duplication of multiple bonds required of mechanical contractors who work in more than one jurisdiction.
Download the Minnesota Mechanical Bond Registration Checklist
Download the Minnesota Mechanical Bond Registration Renewal Packet.
Applicants will submit the original copy of their legally executed Minnesota mechanical surety bond to:
Minnesota Department of Labor and Industry
CCLD: Licensing and Certification Services
PO Box 64220
St. Paul, MN 55164
For more information on the Minnesota mechanical surety bond, contact the Construction Codes and Licensing Division of the Department of Labor and Industry at (800) 657-3944.
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Before they can legally conduct business, all California auto dealers must be licensed by the state’s Department of Motor Vehicles as well as the city/county office that regulates local business registration. To make the process easier, SuretyBonds.com has developed this quick and easy guide to outline California auto dealer license and bond requirements.
How to get a California auto dealer license
Whether you’re a new or existing dealer, you should download an application checklist from the California DMV website, which also provides downloadable forms. The checklist will ensure that you meet all requirements and pay all applicable fees, which might include:
- $150 fee for a dealer license application
- $100 fee for a dealer license renewal
- $225 fee for a new auto, commercial and motorcycle dealer license
Before receiving your California auto dealer license, you’ll have to submit all required fees, forms and documents to your local DMV inspector, which can be done at the time of exam. To verify that an inspector will be available, you should schedule an appointment with your local DMV ahead of time. Look on the DMV’s website to find detailed office information in your area.
Auto dealers must also be licensed by the city or county licensing division where they plan to work. For more information on local licensing requirements, contact the the city/county department that regulates auto dealers in your area.
Surety bond information for California auto dealers
Purchasing a surety bond can be one of the most confusing parts of getting a California auto dealer license. To help make the bonding process faster and easier for our clients, the following Q&A offers vital information to dealers who need a California auto dealer bond.
Why do I need a California auto dealer bond?
As with other surety bond types, California auto dealer bonds regulate the industry and protect consumer interests. Auto dealer bonds protect customers, sellers, financial enterprises and/or governmental agencies. If a dealer commits fraud or conducts business in other unethical ways, the bond protects against financial loss.
California Vehicle Code Section 1171 specifically requires California auto dealers to file surety bonds. Depending on your specific line of work, you will file one of three specific bond forms.
- Form OL 25: $50,000 Surety Bond of Dealer
- Form OL 25A: $50,000 Surety Bond of Vehicle Remanufacturer
- Form OL 25B: $10,000 Surety Bond of Motorcycle Dealer, Motorcycle Lessor-Retailer, All Terrain Vehicle Dealer, or Wholesale-Only Dealer (fewer than 25 vehicles per year)
If a bonded motor vehicle dealer breaks the bond’s terms, the wronged party (i.e. a customer, bank or government agency) can make a claim against the California surety bond to get reparation.
How much does a California auto dealer bond cost?
The exact price you’ll pay for a surety bond will vary for a couple reasons, namely:
- the surety bond amount (i.e. whether you need a $10,000 or $50,000 surety bond)
- your application and financial credentials
If your financial credentials qualify you for the standard market, your surety bond rate could be calculated as just 1% of the bond amount, which would only be $500 for the standard $50,000 bond. Conversely, dealers with poor credit could pay a premium that’s a higher percentage of the bond amount. The best way to determine your exact surety bond cost is get a free price quote from SuretyBonds.com.
How do I get a surety bond?
SuretyBonds.com can provide you with a free, no obligation California auto dealer bond quote in less than one business day. Once your payment has been processed, your surety specialist will issue your bond. If you choose overnight shipping, SuretyBonds.com can have the bond in your hands by tomorrow. However, you should apply for your bond a few weeks before it’s due to ensure you have enough time to file it with the DMV.
What do I do with my surety bond once I get it?
Once you’ve received the original bond form in the mail, you’ll submit it to the DMV along with your other license application forms. SuretyBonds.com is not responsible for submitting the bond on your behalf.
How do auto dealer bonds work?
Like other surety bonds, California auto dealer bonds are three-party contracts.
- Principal: the dealer who purchases the bond to get a license and guarantee compliance with industry regulations
- Obligee: the DMV that requires the bond to enforce industry regulations and protect consumers
- Surety: the provider that executes the bond and provides a financial guarantee of the dealer’s performance
According to California law, a dealer’s license will be automatically suspended if a court finds the professional liable for certain actions protected by the bond. The license can only be reinstated if the bond is reinstated or if a new bond is purchased.
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Plumbers in Minnesota have new bonding regulations to wade through. Effective January 1, the state now requires plumbers to file a $25,000 Minnesota plumbers bond for a two-year term instead of a one-year term. The term now runs from January 1, 2012, to January 1, 2014. Plumbers who have yet to renew their Minnesota surety bond for the new two-year term should contact SuretyBonds.com immediately.
The Minnesota plumbers bond and the subsewage treatment system (SSTS) bonds are still bound under the same surety bond. All individuals who do plumbing work in Minnesota must purchase a plumbers bond even if they aren’t licensed as a state contractor. However, if they don’t need the plumbers bond, contractors in Minnesota can still get the $10,000 SSTS bond on its own for a one-year term.
According to the Minnesota Department of Labor and Industry,
“A bond helps protect the consumer from work that does not comply with the plumbing code. The state can use the bond amount to have noncomplying work corrected. A bond filed with a city would offer similar protection.”
Download the 2012-2013 Minnesota pipe laying contractors plumbing bond registration packet.
Applicants will submit the original copy of their legally executed Minnesota plumbers surety bond to:
Minnesota Department of Labor and Industry Construction Codes and Licensing Division Licensing and Certification Services
P.O. Box 64222
St. Paul, MN 55164
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