How to get bonded and licensed
You, as the owner of a small business, may safeguard both your company and your personal funds by taking the necessary steps to ensure that you and your employees have the appropriate licenses, and bonds. This indicates that you have taken the necessary efforts to comply with licensing rules and have safeguarded yourself, your employees, and your clients by obtaining professional bonds and licenses.
There are several states and municipalities that mandate the licensing of all enterprises. To begin operating a company, in certain circumstances, you will just be required to submit an application and pay the associated charge in order to get the necessary authorization.
Some kinds of enterprises may be required to meet certain criteria in order to be eligible for and submit an application for a specialized sort of business license. For instance, it’s not unheard of for restaurants to demand specialized licensing, which typically requires proof that the employees have successfully completed food sanitation courses and that there has been a comprehensive inspection of the establishment by a government inspector.
On the other end, bonding is a procedure that may safeguard your consumers and customers in the event that one of your workers engages in unethical behavior. There are several situations in which bonding an employee is not required.
As an example, home health aides as well as cleaning personnel are often required to have bonds. If it can be shown that one of your workers has stolen or destroyed property belonging to a customer, the bonding firm will compensate the client for any financial damages incurred as a result of the theft or damage.
You will need to look for a surety bond firm in your region if you want your employees to be protected by a bond. The price of a bond will change based on the level of coverage that you need for each individual worker.
How to safeguard your financial investment
Verify all applicable local regulations.
Investigate the requirements for obtaining a business license imposed by your town or city. Several kinds of enterprises are required to have licenses in order to operate inside the boundaries of certain cities. There are many industries that do not need licenses. Make sure you get all of the information and papers you need from the municipal clerk.
Examine the state’s requirements.
In order to establish whether or not your particular line of work or company is required to get a license, you need to check with the state government. The capacity of the applicant to obtain a surety bond could play a role in determining whether or not they are granted a license.
Finish all documentation that is needed.
Complete all of the appropriate papers that the state requires in order to establish the company. Companies may be sole proprietorships, partnerships, limited liability companies, or corporations, depending on their organizational structure. To select the most appropriate legal form for your company, you should discuss the matter with a lawyer or a certified public accountant.
Forms and methods for establishing the company might differ from state to state. Thus, it is important to consult with the business-development bureau of the state for specific instructions.
Determine bonding needs.
Determine whether or not the state where your company is located needs it to be bonded. If you are doing work in construction, for instance, you may not need to be bonded unless you are going to bid on government projects or huge projects that are going to exceed a value that the state has defined.
When you are seeking to secure contracts from new customers, having a bond may boost the amount of confidence they have in you, even if it isn’t necessary. The government of your state ought to have a list of agents who are able to provide surety bonds.
Employ the services of a corporate lawyer.
Throughout the process of starting a business, it is a good idea to get the services of an experienced attorney.
An attorney who is knowledgeable in general business law and who is licensed to practice law in your state is a useful ally who will safeguard your interests and guarantee that all of the legal criteria for beginning your company are completed.
Get an EIN.
Get from the Federal Revenue Service an Employer Identification Number (EIN). The fundamental instrument for acquiring this essential federal ID number is the Form SS-4, which may be completed in its entirety online.