Plan to start a car wash business in California? One of the requirements set by the State of California Department of Industrial Relations (DIR) is a $150,000 surety bond. This car wash bond protects your customers and the state from any potential financial harm your business might cause.
What is a California car wash bond?
A California car wash bond is a type of license and permit bond required by California to ensure that car washes comply with all state laws and regulations. The bond is a legally binding contract between three parties:
- Car wash business (the principal)
- State of California (the obligee)
- Surety bond company (the financial institution that issues the bond)
Get Your California Car Wash Bond:
- Any car washing or car polishing business operating in California must post a car wash bond to become and remain licensed.
- A car wash bond protects your customers and the state from any potential financial harm your business might cause.
- The bond amount is set at $150,000.
- California car wash bonds are continuous, meaning they must remain in effect for the duration of your business.
How much does a car wash bond cost in California?
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.
Who needs a California car wash bond?
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.
What are my CA car wash bonding requirements?
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.
How to Start a California Car Wash
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.
How to Get Your CA Car Wash Bond
ZipBonds offers the fastest and most secure option for getting the surety bonds you need. Our all-digital platform is intuitive and straightforward. Apply online or call us at (888) 435-4191 to speak with an agent. Most of our bonds are approved and processed instantly from our site.
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.