If you plan to start a car wash business in New York City, you may need a bond first. Learn what an NYC car wash bond is, who needs it, the requirements, and how much it costs.
What is an NYC car wash bond?
A car wash bond is a type of license and permit bond that car wash owners in certain states and cities, including New York City, must obtain to operate legally. This bond is a form of protection for customers who may suffer financial loss due to the car wash’s negligence or misconduct.
In other words, a car wash bond ensures the business follows all applicable laws and regulations. If they breach their contracts, their customers will be compensated.
Get Your NYC Car Wash Bond:
- An NYC car wash bond ensures the business follows all applicable laws and regulations.
- NYC car washes include businesses offering various vehicle cleaning services at a fixed location or as part of an on-demand, mobile, or pop-up service.
- This bond is required by the New York City Department of Consumer and Worker Protection (DCWP) to ensure the car wash company complies with all regulations and protects customers from financial loss.
- The bond amount for a car wash is $150,000.
Who needs an NYC car wash bond, and why?
If you own or operate a car wash in New York City, you’ll need to obtain a car wash bond along with your business license. NYC car washes include businesses that offer the following vehicle services – either at a fixed location or as part of an on-demand, mobile, or pop-up service:
- Other cosmetic care
This bond is required by the New York City Department of Consumer and Worker Protection (DCWP) to ensure the car wash company complies with all regulations and protects customers from financial loss.
Car wash bonds are necessary due to the risk involved when running a car wash. Car washes may handle expensive vehicles, and there is also a risk of damage or theft for vehicle owners. A car wash bond provides peace of mind to customers, knowing they will be reimbursed if they suffer financial loss.
What are the licensing and bonding requirements for car washes in New York City?
Specific requirements for obtaining an NYC car wash license and bond may vary depending on the type of car wash you own, your location, and other factors. Here are the general criteria you must meet to become licensed and bonded:
- Complete the basic license application.
- Obtain car wash self-certification.
- Obtain a sales tax ID number or application confirmation number.
- Purchase a surety bond (see form preview).
- Obtain workers’ compensation, disability benefits, commercial general liability, and unemployment insurance.
- Complete the Granting Authority to Act Affirmation (if necessary).
- Pay the licensing fee.
The New York City DCWP sets the bond amount for a car wash at $150,000. The one exception is if you are a party to a collective bargaining agreement (CBA) OR you’ve entered a settlement with a federal or state governing agency and are covered by an active monitoring agreement. If either of these is the case for you, your bond requirement would be $30,000. Learn more on the DCWP website.
How much does a car wash bond cost in New York City?
The cost of a car wash bond in New York City varies depending on several factors, including the bond amount, the type of car wash, and your credit score. The cost of a car wash bond can range anywhere from 1% to 10% or more of the bond amount. For example, to get a $150,000 car wash bond, you may need to pay between $1,500 to $15,000. The better your credit score is, the lower your premium rate will be (typically).
How to Start an NYC Car Wash
To start a car wash in New York City, you’ll need to follow these steps:
- Obtain a license from the New York City DCA.
- Register your business with the New York State Department of State.
- Obtain insurance.
- Obtain a tax ID number from the Internal Revenue Service (IRS).
- Purchase a car wash bond from a licensed surety company.
- Purchase or lease a location for your car wash.
- Purchase or lease equipment for your car wash.
- Hire employees and provide training.
- Promote your car wash through advertising and marketing.
Starting a car wash in New York City requires careful planning, hard work, and compliance with all laws and regulations. You can protect your customers and operate legally in the city by obtaining a car wash bond.
How to Get Your Car Wash Bond in NYC
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 get bonded in a flash!
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.