Archive for April, 2010

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$100,000 Surety Bond for New York City Process servers

Friday, April 9th, 2010

Independent process servers must  file a $10,000 surety bond for New York City. Process server companies must also file a surety bond for New York City the bond amount required for companies will be set at $100,000. The $100,000 surety bond and the $10,000 bond for the city is required to guarantee compliance with the stricter regulations that just passed. You can learn more about process server bonds here

This is just one example of many surety bond changes this year. Many predict that more businesses will have higher surety bond amounts and new bond requirements this year.

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Oregon Landscape Surety Bond

Thursday, April 8th, 2010

A few requirements you must meet to become a licensed landscaper in the State of Oregon

WHO MUST BE LICENSED?
Oregon’s Landscape Construction Licensing Law, ORS 671.510-671.760, requires any business that offers the services of a landscape construction professional to have a valid landscape contracting business license. Violations of the law can result in civil penalties of up to $2,000 per offense. The Landscaper must also pass a exam to qualify for the license.

SURETY BOND: $3,000, $10,000 or $15,000

The amount of the bond is based off the size of the work preformed within a 12 month period.

a.) $ 3,000 Surety Bond for landscape jobs under $10,000;
b) $10,000 Surety Bond for landscape jobs between $10,001 – $25,000 or if your business constructs fences, decks, arbors, driveways, walkways, patios, landscape edging and/or retaining walls that are not done in conjunction with landscape work without a Construction Contractors Board license; or
c) $15,000 Surety bond for landscape jobs over $25,000.
* Landscape job is the total of one or more contracts for a project for the same consumer on the same job site during a 12 month period. ”
How do you qualify for the bond?

Simple just fill out the online surety bond application and we will get back to you within 24 to 48 hours with an approval. The Application should take less than five minutes. We have great programs for clients that have perfect credit or clients that have less the perfect credit.  If you have any questions about this type of bond or need any help please give us a call.

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Tax Bonds are Surety Bonds

Wednesday, April 7th, 2010

After April 15, your business may need a tax bond. A tax bond is a surety bond that is usually required by the State. Some of these bonds are needed the day you start your business others expire at the end of the year.  The majority of tax bonds are required for retail businesses guaranteeing the payment of sales taxes to the obligee.

Different types of tax bonds

Tax Bonds for restaurants :

There are many different types of tax bonds.  Some tax bonds are required for restaurants or bars to guarantee the payment of alcohol taxes. These bonds are also known as liquor bonds and alcohol bonds.

Penalty Bonds :

Some tax bonds are considered penalty bonds because your business was late on paying it’s  taxes.

Sales Tax Bonds :

The bond amount for Sales tax bonds is either based off your projected gross income or the bond amount is already preset by the obligee. There are even Tax Bonds required by contractors to guarantee that your will pay your taxes on the materials your purchased wholesale.

How much does a Tax Bond Cost?

The cost of the surety bond can vary depending on the bond language, credit, financial stability and the State.

What to do if you need this Surety Bond?

The first thing that the surety will need is an application.  Filling out the application should take five minutes or less.  The surety will review your credit, financial stability to determine surety credit.   After the application is completed you should receive an approval within the same day or the following day.

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Florida MVD Surety Bond April 30

Tuesday, April 6th, 2010

Florida MVD bonds expire April 30 of ever year.

What is A Florida MVD Bond?

A MVD is a surety bond. Surety bonds are required to fulfill a licensing requirement or financial obligation. Bonds protect the obligee,  from fraud, breach of contract and in some cases certain payments. Check your state Statutes referenced in your Surety Bond form to see what applies to you.

Who is requiring the Bond?

Florida MVD Bonds are required by The State of Florida department of Highway Safety and Motor Vehicles. This is the Obligee. A Obligee is the  one that is requiring the bond.  The Principal is the person or the business applying for the surety bond.

What does it do?

Taken from the Florida bond form

“WHEREAS, such bond shall be in favor of any person in a retail or wholesale transaction who shall suffer any loss as a result of any violation of the conditions herein above contained. NOW, THEREFORE, if the above named principal shall fully comply with the conditions of any written contract made by him as such dealer in connection with the sale or exchange of any motor vehicles, and shall pay or cause to be paid to any person in a retail or wholesale transaction any loss or damages which such person shall sustain as a result of any failure to comply with the conditions of any written contract made by such dealer in connection with the sale or exchange of any motor vehicle or as a result of any violation of the provisions of Chapter 319 or 320, Florida Statutes, in the conduct of the business of which he is licensed, then this obligation shall be void, otherwise to remain in full force and effect.

Basically if you violate the law the damaged party can file a claim and recoup their loses.

What happens if you have a claim?

If you have a claim and the surety pays out you must pay back the surety for the lose.

Surety bonds are underwritten similar to a loan. The surety reviews your credit and financials to determine surety credit.

How much do Surety Bonds cost?

Surety bonds for these bonds can start at 1% for good credit and qualifying assets. For clients that have issues rates can be anywhere from 3% to 20%.

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Mortgage Surety bond

Friday, April 2nd, 2010

Mortgage Surety bonds are not the same as a Mortgage bond you would purchase as a investment. A Mortgage Surety bond is required by the majority of states in order to obtain a mortgage License and transact loans. Typically the average bond amount is set at $25,000. Always check with the state to obtain the current bond form as well as the amount needed.

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Is it worth it to get a surety bond

Thursday, April 1st, 2010

There are bond alternates, but are they as good as a surety bond.

First alternate instead of paying for a surety bond you could post 100% collateral with the obligee if they allow it.  Some obligee accept a cashiers check or a ILOC. A ILOC stands for irrevocable letter of credit. The obligee may provide sample verbiage of how they want it to be written or you bank has a sample form all ready drafted. If you decide to obtain a ILOC the bank normally will want the ILOC to be secured by assets or cash.   Banks also charge a fee for providing these services. The prices for a ILOC is around the same price for a surety bond.

The problem with collateral  is that it may take you several years before the collateral is returned to you. The obligee normally will not release the collateral until your business has been released of all liability. Keep in mind that there is no statute of limitations on fraud. From what I have been told from customers it takes on average of 3 years with some obliges to release your collateral. I  once had a client that took 6 years for to get his collateral back. He had to jump though several hopes before they would even consider  returning his money back to him. The obligee required for the client to obtain a surety bond and have the surety write a letter stating that they would consume all past liability. With the way the market is today I don’t see a surety doing that again.

In this economic climate I would rather pay a small premium rather then tying up $10,000 or $25,000 of my working capitol.

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Do surety companies perform background checks?

Thursday, April 1st, 2010

Do surety companies perform background checks?

Many people call and ask if I get a fidelity bond will the surety perform a background check on my new hires? The answer is no. You would think that it would be in the surety’s best interest to do so, but the cost would outweigh the premium.

Some surety companies’ offer discounted services for using companies they recommend for background checks.

A Fidelity bond is more of an insurance policy than a bond. Limits for this type of coverage’s start at 25,000 and can go as high as a $25,000,000. A fidelity bond is a essential insurance product that ever business owner should carrier.

Fidelity bonds protect the policy owner from employees that steal from them

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