Virginia Surety Bond Types
Virginia is one of the many states that requires different types of businesses to obtain a surety bond to protect consumers from fraudulent activities. Surety companies usually protect the consumers, or obligees, by guaranteeing that the business, or principal, fulfills its contractual promises. (Surety bonds sometimes protect government agencies or the business itself.) If, for some reason, the business fails to meet the stipulations of the agreement, then the obligee can seek legal action. If this occurs and other forms of payment are exhausted, then the surety bond would compensate the obligee for his or her costs.
One kind of business that may need to obtain a surety bond in Virginia is one that sells tobacco products. The local tax commissioner may require wholesalers or retail dealers to file for a tobacco wholesaler's check guarantee bond in a specified amount. The surety must be authorized in Virginia for a business to legally operate in the state. In Arlington County any person who is liable for a cigarette tax must apply to be a registered agent. The application requires poof of a surety bond. Those required to obtain this bond include any individual who will buy, possess, store, transport or distribute cigarettes into or within the county.
Your Virginia Surety Bond Company
While government rules and regulations may require these types of businesses, as well as many others, to obtain surety bonds, you should realize that these bonds are not just another annoying piece of paperwork to file. Surety bonds are very beneficial commodities to possess. Once your customers know that you have a surety bond to protect their interests they will respect your business ethics. They will know that you've invested in a surety bond guaranteeing that you will fulfill your contract. Thus, potential customers will feel confident about entering into a business deal with you.
Although you may not need to obtain a tobacco wholesaler's check guarantee to operate your business, make sure to check with your local and state rules and regulations regarding surety bonds. Despite the fact that they are extremely important for a business to have, they are actually quite easy to apply for. You can apply for many different types of surety bonds online in just a few minutes. If you're not exactly sure what kind of bond you're interested in you should always feel free to contact a surety bond specialist. He or she can guarantee you get the best surety bond to protect your business and your customers.