California Car Wash Bond

The bond amount is set at $150,000. To obtain this bond, you’ll pay a premium – a small percentage of the bond amount. Your bond premium will depend on several factors, including your credit score, business financials, and industry experience. 

Generally, the higher your credit score, the lower your bond premium. You could pay as little as 1% of the bond amount ($1,500) with excellent credit.

Any car washing or car polishing business operating in California must obtain a car wash bond as part of the licensing process. This includes any business that washes, cleans, dries, polishes, details, services, or provides other cosmetic care to vehicles. 

The bond ensures that the business complies with all state laws and regulations related to labor laws, wage and hour requirements, and environmental regulations. The bond also protects customers financially if the car wash business fails to fulfill its obligations or causes any damages. Read the complete list of instructions and requirements for applicants for more details.

Note: You don’t need this surety bond if you’re a car wash employer with a valid collective bargaining agreement.

To obtain your $150,000 California car wash bond, contact a licensed surety bond company that can issue the bond (like ZipBonds). You’ll complete an application and provide some financial and business information. You will also need to pay a premium for the bond (as mentioned above).

California car wash bonds are continuous, meaning they must remain in effect for the duration of your business. You must renew your bond annually for it to stay active. You can view the bond form preview on the DIR website.

To start a California car wash business, you must follow several steps. 

• First, register your business with the California Department of Industrial Relations and obtain a business license from your local city or county. Submit all required documentation with your license application (including insurance and a $150,000 surety bond). You must also complete and submit a tax authorization form. 
• Pay $300 (per location) for annual registration and assessment fees.
• Post your current, valid registration in plain sight so your employees can read it easily.
• Keep accurate records for three years. 

A California car wash bond is an essential requirement for any car wash business in California. It protects your customers and the state from financial harm and ensures that your company operates legally and ethically. Contact ZipBonds if you have any questions regarding car wash bonds for your business.