The first step in getting a small business startup bonded is to create a list of services the company provides for its clients so the bonding company can estimate a premium, according to Candace Webb of the Houston Chronicle. Once a comprehensive list is created, contact bonding companies for quotes.Continue Reading
Interviewing multiple bonding companies ensures that the business can compare the bonding terms, and it gives the company's owners a chance to find agents with whom they can work well, says Webb. Once an agency is chosen, information such as the company name, age and Social Security numbers for each employee are submitted to the agency to set a premium. Once a premium is agreed upon, the agency sends a certificate of bonding to the company for its records and to advertise to current and potential clients.
Startup businesses should employ an attorney who practices business law to cover city, county and federal licensing and bonding requirements, as well as tax identification issues, Jason Gillikin of the Houston Chronicle advises. Not all businesses are required to be bonded depending on state laws. However, acquiring a bonding certificate and advertising it can attract and reassure customers. For businesses where a bond is required, any time the business operates without one, it can be subject to a fine or a criminal conviction, so a certificate must be obtained before the business is operational.Learn more about Managing a Business