This document is a legal agreement between the contractor, their clients, and the general public. It allows the client and the public to sue the contractor in case of a breach of contract.
To obtain this document, the contractor must sign an agreement with the surety company and the obligee. Accepting the terms and conditions of this agreement shows that you are financially capable of paying a bond.
You can also refer to contractorbond.org for more information. With that said, let us look at a few things you may want to know.
Here are a few steps to getting your license.
- Determine your requirements
Know the type of surety bonds and contractor bonds you need and how much it might cost you. You may be required to get the contractor license bonding before getting a contractor’s license. Basically, some states may not allow you to operate your business without the two documents. Similarly, you might require separate surety bonds to operate depending on the type of your business.
- Find a surety agency and apply
The second step requires you to register with your local surety agency. If you don’t know where to find them, you can start by checking them online or consult with your family or friends. Make sure you have all the information required before registering including your work history, the type of bond needed, your financial history, and the amount required.
- Sign and submit your bond to the state
Once you have filled in all the necessary information, it’s time to sign and submit your form. Also, ensure that the document has zero errors, it’s fully signed, and make copies for your records. Afterward, send the data to the relevant state agency together with any other important paperwork. It might take you approximately three weeks to get feedback from the authority depending on your state.
Let’s look at the various data you will need to provide when registering.
On the application, you’ll need to provide:
- Full new business name
The name of your business should match the type of products and services you provide. For example, you cannot name your business Afri pipping solution if you deal with concrete and tiles. If you registered your company with the Secretary of State (SOS) as a limited liability company, it should appear the same way on your license.
- Type of classification requested
The agency provides one classification at a time to choose from. You should only choose the classification that you fall in. For instance, the General Engineering contractors may request for class A category and category B for the General Building contractors.
- Business address
Your business should have a working email address, fax number, and phone number. You will also be asked to provide a mailing address and a street address. Although the street address is an important requirement, it might not be published with the rest.
- Business entity designation
The three main types of business entities include sole proprietorship, limited liability companies, and corporations. The sole proprietorship means your business is run by one owner who is reliable for all business-related expenses. A limited liability company is a hybrid of the sole proprietorship or partnership and a corporation. The latter is owned by multiple shareholders, has a board of directors and is run by officials. With this in mind, choose the entity that suits your business.
- Information for qualifying individual
Here you must provide the full names, date of birth, phone number social security number, title or position street address, QI existing/previous CSLB license number(s), Driver’s License Number, and the percentage of the new business owned by QI. Make sure to mark the appropriate and do not include the PO boxes on the street address section.
- Personnel information
This section requires you to provide your full legal names, SSN, DOB, resident address, phone number, and the title or position
- Required “yes” or “no” application questions
Make sure to provide the right answer to the queries followed by the Certification of work experience.
Before applying for a contractor license bond, we recommend you learn more about it to avoid hefty fines in the future. You will be required to provide this document by your local authority before commencing your business. Also, make sure to follow all the given instruction when registering