West Virginia Surety Bond Types
Each state offers different kinds of surety bonds, and oftentimes the government requires businesses to have one to operate legally. While obtaining a surety bond may seem like a hassle, it's actually quite easy to do and well worth the investment.
Surety bonds in West Virginia, as well as in other states, act as extra protection for a business's consumers by guaranteeing the business follows through with all contractual agreements. The individual or business is the principal who offers a service, and the customers are obligees who should receive the service. The surety bond provider makes a deal to ensure that customers aren't left in the dark if the principal fails to follow through with its agreement.
Surety Bond Definitions in West Virginia
There are some unique reasons you might need a surety bond in the state of West Virginia. For example, a nonresident of the "mountain state" who cuts wood in the state may choose to submit a nonresident timber severance tax surety bond. While a surety bond is not required to get the necessary business registration certificate, it can be issued to the local tax commissioner in lieu of a timber severance tax prepayment.
Given the nature of surety bonds, this option might be more attractive to you if you plan to cut timber in West Virginia. You would likely receive a much better personal benefit by purchasing a surety bond because doing so reassures your customers that you are reliable and committed to fulfilling your contract. And, if something unexpected did go wrong the surety would be able to financially back you up if all other means of collecting reimbursement were unsuccessful.
The government requires many other types of businesses, from auctioneers to car dealerships, to purchase surety bonds as well. In each of these cases, the government seeks to use a surety bond to protect the customer from fraudulent businesses and broken contracts. Make sure you look at the specific rules and regulations for surety bonds in your state. You want to make sure you obtain the right type of bond in the correct amount to avoid penalties. But keep in mind, surety bonds aren't just about keeping the law and avoiding penalties, they're about protection. They're about protecting you and your potential customers.