How to Apply for a License & Permit Bond

License and permit bonds are types of surety bonds. These bonds are required by State or Federal government agencies as a condition before they can be issued a license. These bonds are also known as commercial bonds.

A license and permit bond are usually limited to one industry, meaning that the business with the bond will adhere to the government rules and regulations. A business that operates across several industries must obtain separate bonds for each industry. If you are starting a new business or branching out, this is how you should apply for a new bond:

Find out the type of bond required: The type of bond you apply for will depend on the industry you are operating in. So, you must first determine the type of bond required for your specific business. Websites like business.gov have relevant information regarding this.

Find a surety to issue your bond: The government is the obligee and your business is the principal. To secure the bond, you will need to find a reputable surety company. Most surety companies have online forms where you can apply for the bond. Once you complete your application, an agent will typically contact you.

Prepare your documents: The bond application will usually list the documents needed. Keep these ready, especially all information regarding ownership and your credit score. These factors will determine the cost of the bond. Once you make the payment, the bond will be posted to you directly.