Single Source Blog - Surety News - Page 14

Who Needs an Indiana Liquor License?

The state of Indiana Alcohol and Tobacco Commission regulates the production, transportation, and sale of alcohol, as well as its possession and use. However, permits for companies and individuals involved in the alcoholic beverage industry are issued at the county level through local beverage and alcohol commissions.

To determine the specific type of permit you may need, check out the list on the state Commissions Licenses page. There are dozens of different permit types that are distinguished in terms of the permittee�s role (e.g., alcohol production, retail or wholesale sales, transportation, etc.), venue (grocery store, restaurant, resort hotel, stadium, etc.), and other factors.

Bear in mind that only a certain number of permits are available in each county.

What Are the Licensing Requirements?

Each county commission has its own established requirements and process for issuing alcoholic beverage permits. Procedures vary depending on whether a new permit is available or you�re purchasing an existing permit from its current owner.

One common requirement is to submit a copy of a lease or proof of ownership of the premises for which the permit is needed. Another is property tax clearance from the county.

Obtaining a permit to operate as a brewer, distiller, vintner, or liquor wholesaler requires the purchase of a license and permit surety bond. Getting a permit to sell alcohol as a retailer involves collecting sales tax and requires the purchase of an alcohol sales tax surety bond.

Why is a Surety Bond Required?

A surety bond is a guarantee that the purchase (known as the bond�s �principal�) will operate in accordance with all applicable laws, statutes, and industry standards as identified in the surety bond agreement. The party requiring the bond (the bond�s �obligee�) establishes what those are and sets the required bond amount.

A license and permit bond is intended to ensure that the principal conducts business lawfully and ethically. It is the principal�s guarantee to compensate any party suffering a financial loss as a result of the principal�s violation of the surety bond agreement.

A sales tax bond ensures that the principal remits to the state the sales taxes collected from customers. The principal�s failure to remit tax payments as required entitles the obligee to recoup the funds by filing a claim against the surety bond.

How Does It Work?

Anyone financially harmed by the principal�s failure to comply with the terms of a surety bond agreement has the right to file a claim against the bond and be compensated for their loss.

Upon receipt of a claim, the surety bond company (referred to as the �surety�) will make sure it is valid and then try to negotiate a settlement. If no mutually agreeable settlement is reached, the surety typically goes ahead and pays the claim.

However, the principal is legally obligated to pay all claims and must reimburse the surety for any claims paid in advance. Essentially, the surety bond functions like a line of credit for the principal. It gives the principal time to gather the necessary funds while ensuring timely payment of the claim.

What Does It Cost?

The annual premium for a surety bond is calculated by multiplying the required bond amount by the premium rate assigned to the principal by the surety bond company. The surety company sets the premium rate based largely on the principal�s personal credit score. The better the principal�s credit, the lower the premium rate will be.

Get Bonded Today

Contact us today to get the surety bond you need to obtain an Indiana liquor license at a competitive rate.

Who Needs a California Liquor License?

California�s Department of Alcoholic Beverage Control issues nearly a hundred different types of liquor licenses covering just about every aspect of the industry, from manufacturing to shipping, storage, distribution, and wholesale and retail sales.

What Are the Licensing Requirements?

Whether you�re applying for a new license or a transfer of a license from a current licensee, the process begins at the nearest ABC district office. The process is intended to be initiated in person. If a transfer is involved, both the current licensee and the transferee should be present. You�ll be advised as to what forms you must complete, what fees you will need to pay, and any other requirements you must meet.

Depending on the municipality your business is located in, you may also need to obtain a local business license or permit.

Before opening a business involving alcoholic beverages, you�ll need to check with the U.S. Treasury Department�s nearest Alcohol and Tobacco Tax and Trade Bureau and see if you need a federal permit or whether an Occupational Tax stamp is required.

You�ll also need to register your business with the State Board of Equalization, because you�ll be responsible for collecting sales tax from customers and remitting it to the state through the California Department of Tax and Fee Administration�s Taxpayer Online Services Portal.

Why is a Surety Bond Required?

Requiring businesses in the alcoholic beverage industry to purchase a surety bond is the primary way that California prevents alcohol tax fraud and nonpayment of sales taxes owed to the state. By purchasing the required bond, licensees guarantee that they will make the necessary tax payments on time and in full.

How Does It Work?

An alcohol tax surety bond agreement is a legally binding contract among these three parties:

-������ The state of California (the �obligee� requiring the bond)

-������ The licensee/business owner (the �principal� purchasing the bond)

-������ The surety bond company (the �surety� underwriting and issuing the bond)

If the principal violates the terms of the surety bond agreement by failing to make required tax payments, the obligee can file a claim against the bond and be compensated for financial damages. When a claim is filed, the surety will attempt to negotiate a quick settlement. If that�s unsuccessful, the surety will typically go ahead and pay the claim, even though legally paying claims is the principal�s responsibility.

The surety bond works like a line of credit for the principal. The surety�s advance payment gives the principal a little time to gather the necessary funds while ensuring timely payment of the claim. Ultimately, the principal is legally obligated to repay the surety in full for payments made on the principal�s behalf.

What Does It Cost?

The annual premium for any surety bond is a small percentage of the required bond amount. While the obligee establishes that bond amount, the surety sets the premium rate based primarily on the principal�s personal credit score. The higher the principal�s credit score, the lower the premium rate�potentially as low as 1% to 3% for someone with excellent credit.

Get Bonded Today

Contact us to discuss your bonding needs to obtain a California liquor license.

Who Needs a Travel Agent License?

Only 13 states require licensing, registration, or bonding of travel agents, technically known as �sellers of travel.�

What Are the Licensing Requirements?

The licensing or registration requirements and procedures differ depending on which of those states you want to operate in as a travel agent.

In general, you can become a travel agent with no formal education beyond high school, though some people pursuing a career in travel sales complete a certificate program. Others earn an associate or bachelor degree in tourism or some aspect of the hospitality industry.

Some states require travel agencies to register as sellers of travel in addition to registering as a business. They may even require some form of financial security, such as a deposit into a special fund or the purchase of a surety bond.

Why is a Surety Bond Involved?

Travel agencies often receive deposits from clients that they then turn over to tour operators, hotels, and other travel industry operators. The states that require a security deposit or surety bond do so because of the potential for clients to suffer a financial loss due to a travel agent�s unethical or unlawful business practices.� The bond ensures that these clients are compensated for their loss.

Even in states that don�t impose a bonding requirement, many travel agents choose to purchase a type of surety bond known as a fidelity bond for their own protection. A fidelity bond will protect you against being held liable for money lost through theft, fraud, or other dishonest act by an employee, and it will compensate the injured party for their loss.

Advertising the fact that you chose to get bonded can be a very effective marketing strategy. People will see it as a demonstration of your commitment to running an honest and ethical business with your clients� best interests at heart.

How Does It Work?

Most surety bonds protect the state or consumers, not the bonded individual. However, fidelity bonds are actually an insurance product that protects the insured�the travel agent.

Let�s say you buy a fidelity bond that provides blanket coverage for the dishonest acts of any of your employees. Subsequently, one of your employees absconds with a $2,000 cash deposit from a client. The client would have a valid claim against the bond, a claim that would be paid by the company that issued the bond.

What Does It Cost?

The annual premium you�ll pay for a fidelity bond depends largely on two key factors: the amount of coverage and the number of employees who will be covered.

If you�re buying a bond to meet a state requirement, the state dictates the dollar amount. But if you�re voluntarily purchasing a fidelity bond, you get to choose the amount of coverage. You also have the choice of covering only specific employees or buying blanket coverage for all of them.

Get Bonded Today

Whether you need to buy a bond to get licensed or are choosing to buy one, give us a call or request a quote online today.

Who Needs a Florida Telemarketing License?

Most businesses and individuals engaged in commercial sales via telephone need to be licensed by the Florida Department of Agriculture and Consumer Services, but there are some exceptions. The types of businesses that are not required under the Florida Telemarketing Act to be licensed are identified in Section 501.604 of the Act.

Both telemarketing businesses and the salespeople working for them must obtain a Florida Telephone Seller license.

What Are the Licensing Requirements?

Both business applications and salesperson applications can be submitted online through the Department’s website, which provides all required forms and a checklist of the tasks that must be accomplished. These include, among other requirements, providing sample telemarketing scripts and sales materials and purchasing a $50,000 telemarketer surety bond.

Why Is a Surety Bond Required?

The purpose of the surety bond is to ensure compliance with relevant sections of the Florida Telemarketing Act and other applicable laws and regulations. The bond also ensures that funds will be available to compensate those with a valid claim for damages resulting from the telemarketer�s unlawful or unethical business conduct.

How Does It Work?

There are three parties to a telemarketer surety bond agreement, which is a legally binding contract:

-������ The �obligee� requiring the bond (the Department of Agriculture and Consumer Services)

-������ The �principal� purchasing the bond (the telemarketing business or salesperson)

-������ The �surety� underwriting and issuing the bond (the surety bond company)

When a claim is filed against a telemarketer bond, the surety company that issued the bond will first investigate to make sure that it is valid. If it is, the surety company will try to work out a settlement with the claimant. If that�s not successful, the principal will be responsible for paying the claim.

However, it�s common practice for the surety to step up and pay a claim on behalf of the principal, essentially advancing funds to the principal. The legal obligation for paying claims belongs to the principal alone, who must reimburse the surety for any claims paid by the surety.

What Does It Cost?

The principal will pay an annual premium for a telemarketer surety bond that is only a small percentage of the required $50,000 bond amount. The surety�s primary consideration in assigning a premium rate to is the principal�s personal credit score.

There is an inverse relationship between a principal�s credit score and the premium rate�the higher the credit score, the lower the premium rate, and vice versa. A high credit score earns a premium rate somewhere between 1% and 4%, or $500 to $2,000. Those with credit challenges should still be able to get bonded, but will pay a higher premium rate.

Get Bonded Today

Give us a call or request a quote online for the surety bond you will need for your telemarketing business or as an individual telemarketer.

Who Needs a California Real Estate Broker License?

California requires real estate professionals who want to operate a brokerage firm to obtain a license as a California real estate broker. Bear in mind that you must have a certain amount of experience working in real estate before you can get a broker�s license.

What Does the Licensing Process Involve?

Before you can apply for a California real estate broker�s license you must have the following:

-������ Five years of full-time or four years of part-time experience as a real estate license, or

-������ A bachelor�s degree with a major or minor in real estate, or

-������ Real-estate related work experience equivalent to two years of sales experience (e.g., as a real estate developer, loan officer, property manager, etc. or as a licensed real estate agent or broker from another state or country)

In addition to obtaining documented evidence of your education and experience, you�ll need to complete eight college courses in specific brokerage subjects. You can�t apply for your license until you have passed all eight courses.

The remaining steps in the licensing process then include:

1.������ Get fingerprinted unless you have already been fingerprinted to become licensed as a California real estate agent.

2.������ Complete the Combined Broker Examination and License Application, and attach evidence that you have met all education and experience requirements. Indicate whether you want the Department of Real Estate (DRE) to schedule you for the real estate exam or prefer to do that yourself. Pay all applicable fees.

3.������ Pass the 5-hour broker exam within two years of submitting your application for licensing.

4.������ Consider obtaining a surety bond to demonstrate your commitment to ethical business conduct.

Why is a Surety Bond Recommended?

California does not require real estate brokers to purchase a license bond. However, voluntarily purchasing one or more types of fidelity bonds is a smart move for any real estate broker. It provides important financial protection for you and your business in the event that an employee commits a dishonest act, such as theft or forgery�occurrences that aren�t normally covered by general liability insurance.

Being bonded can give you a competitive advantage in marketing your business. Some clients, particularly commercial clients, will only work with a broker who is bonded. To other consumers, a fidelity bond is a sign that you are trustworthy and will be proactive in protecting their interests.

How Does It Work?

While most surety bonds protect the state and/or consumers but not the bonded individual, a fidelity bond is actually a form of insurance policy and protects the real estate broker as well as the broker�s clients. You can purchase one that covers dishonest or unethical acts committed by certain designated individuals only or by any member of your staff.

Depending on the terms of the fidelity bond you purchase, you may have to wait until criminal charges have been filed or an employee has been convicted to file a claim against the bond.

What Does It Cost?

The annual premium for a fidelity bonds is a small percentage of the total bond amount. The exact percentage is based on the total amount of coverage requested and the number of employees to be covered.

Get Bonded Today

If you agree that voluntarily purchasing a fidelity bond for your California real estate brokerage is a good idea, give us a call or request a quote online.

Who Needs a California CPA License?

Anyone who wants to work as a CPA (Certified Public Accountant) in the state of California must be licensed by the California Board of Accountancy (CBA). You do not need to be an American citizen or even a resident of California to be licensed as a California CPA.

What Does the Licensing Process Involve?

The following is an overview of California�s CPA licensing process. You�ll need to access the CBA website for detailed instructions. The process doesn�t begin in earnest until you have met certain education, testing, and experience requirements. Take a look at the necessary steps:

1.������ Verify completion of at least 150 semester hours of undergraduate study that meet the following criteria:

-� � � �24 hours of certain accounting subjects,

-������ 24 hours of approved business subjects,

-������ 20 hours of accounting, and

-������ 10 hours of ethics.

Simply having a bachelor�s degree isn�t sufficient unless the coursework meets the above criteria.

2.������ Establish an online account with the CBA and have every educational institution you’ve attended forward official, sealed transcripts to the board.

3.������ Apply to sit for the American Institute of Certified Public Accountants� standardized CPA exam. You will receive your Authorization to Sit (ATT) once your transcripts have been received and approved by the CBA.

4.������ Sign up for your NASBA Notice to Schedule (NTS) upon receipt of your ATT.

5.������ Schedule yourself to take the CPA exam at a specific testing center upon receipt of your NTS. You can take the four exam sections one at a time over an extended period. You must pass all four sections before you can apply for your license.

6.������ Fulfill the work experience requirement by working under a California licensed CPA for a minimum of one year, including at least 500 hours of auditing or attestation. Obtain the necessary documentation from your supervisor(s)—Certificate of General Experience (CGE) and Certificate of Attest Experience (CAE)—and submit to the CBA.

7.������ Take the CBA�s California Professional Ethics Exam (PETH).

8.������ Complete and submit your CPA license application along with the required photo, fingerprint packet, criminal conviction disclosure, and application fees.

9.������ Consider obtaining a surety bond to demonstrate your commitment to ethical business conduct.

Why is a Surety Bond Recommended?

The kind of work that CPAs do requires the highest level of trustworthiness and ethical conduct. Purchasing one of the types of surety bonds classified as fidelity bonds provides financial protection for your clients and for yourself.

For example, you might decide to purchase a fidelity bond to protect yourself against fraud, theft, or embezzlement by your employees with access to payroll funds or other client assets. Such bonds can cover specific named employees or provide blanket coverage for all employees or a class of employees.

Being bonded gives you a competitive advantage in marketing your services. The fact that you voluntarily purchased such protection makes a powerful statement about your commitment to your clients.

How Does It Work?

Unlike most surety bonds, which protect the state and/or consumers but not the bonded individual, a fidelity bond is actually a form of insurance policy. If you purchase a fidelity bond, the company that underwrote and issued it will pay any valid claim filed by you or by a client who has suffered a covered financial loss stemming from the dishonest or unethical actions of an employee.

In some cases, criminal charges must be filed or the employee must be convicted before a claim will be paid.

What Does It Cost?

The cost of a fidelity bond is a small percentage of the total bond amount you request. The company issuing the bond will assign you a premium rate based on the amount of coverage you choose and the number of employees the bond will cover.

Get Bonded Today

Request an online quote today for a fidelity bond that will enhance your reputation as a CPA and give you a competitive advantage. Or, contact us to discuss your bonding objectives with one of our surety bond professionals.