How and what do I do to get bonded for my business? Where do I go? How much does it cost?

Stringer

Bonding for a business is generally handled through an insurance company. Contact some of the major companies; however compare prices to what you are getting, they can vary a lot.

Clough

Good answer above!

Are you sure that you need to be bonded for your business? If you don't really need to be bonded, then you could save some money.

Fr_Chuck

What type of business ? why do you need the bond?
Also in some business, there are associations that provide them at a more discount rate.

hfoste01

If I don't need a bond, I will not get it. I thought that if you have a cleaning service or painting of that nature, you would have to have a bond. I am only looking to start with just a few people.

excon

Hello hf:

The number of people you hire doesn't matter. If the state doesn't require you to have a bond, then from a legal point of view, not having one doesn't matter either.

However, from a marketing point of view, it very well MIGHT matter.

excon

Stringer

Hello hfoste01,

I own several companies one of them is a commercial cleaning company. In my State (Illinois) there is no requirement for an "on going Bond." However, some Bid Specifications call for a specific bond amount to qualify to give a proposal for service. There is a "Performance Bond" that you can purchase specifically for that particular bid. This Performance Bond means that if you do not "perform" as specified then you relinquish the amount of that required bond to the client and obviously the contract is lost also. By the way, let this happen and you will find it much more expensive and difficult to get another one.

I would suggest that no matter how many employees you may have that you have liability insurance-protect yourself.

How you legally set up your company is also important. Make sure that you are incorporated with your state. There are many different types of incorporation, fifteen years ago I set up as a "C Corp" and changed to a "Sub S" a year later for taxing purposes. In Illinois the way I understand it once you set up a corporation type you can only change it once, may be different in other states.

If I may be of any further assistance to you please let me know.

Stringer

hfoste01

I am thankful for all of the answers that were given, I am so happy that I've stumbled on this site lastnight. I will have many more questions, stay tuned. LOL

Stringer

I'm not sure but........sometimes there is a little confusion with this matter, are you sure that you are talking about "a bond, bonding or being bonded?" I'm not trying to be funny here but sometimes people new to owning their own business confuse Bonded with Insured."

Although having an Performance Bond for a certain job is "insurance" for your client in case you fail to perform, liability insurance is something different.

Also a question a potential client may ask you is "are you bonded?" Actually they may be referring to your being "insured."

As I mentioned before hfoste01 I have owned my own cleaning business for the last 15 years and have been in this business for over 25. If I may be of assistance and possibly answer any other questions I would be glad to. Just post your questions under "Business Topics."

Good luck to you, this can be a challenging and also a rewarding business.

Stringer

fotoko

If you have insurance with a compay like State Farm, ask your agent. I had it done at the best price that way.