Registration Service Surety Bond

A registration service bond is a contract between three parties:

• Principal: The registration service provider 
• Obligee: The state government that requires the bond
• Surety: The financial institution that issues the bond

If the registration service provider violates the terms of the bond agreement, such as committing fraud or misrepresenting services provided, they may face bond claims.

The cost of a registration service bond varies by state, the bond amount required, and the registration service provider’s creditworthiness. Typically, registration service providers with good credit can expect to pay a premium of 1-5% of the bond amount. Those with bad credit may pay a higher premium.

• For example, registration service providers in California need a $25,000 bond. The bond premium typically ranges from $250 to $1,250 annually (1-5%).

To apply for a registration service bond, follow these general steps:

• Determine the bond amount required by your state’s licensing agency.
• Find a reputable surety bond company that can provide the bond (like ZipBonds).
• Complete the bond application, which typically includes information about your business, personal information, and financial history.
• Provide any additional documentation or collateral required. This may vary depending on your credit history and the bond amount.
• Pay your premium.
• Once approved, the surety bond company will issue your bond and provide you with a copy. You’ll need to file the original bond with your state licensing agency to obtain or renew your registration service provider license.