FOR ALL YOUR SURETY BOND NEEDS.
These surety bonds are general for all states.
Learn more about marijuana surety bonds, and apply today. Single Source Insurance offers surety bonds nationwide through a convenient online application system.
The rapidly growing cannabis industry is highly regulated in the states that have legalized medical or recreational use. Because the cannabis laws vary from state to state, the licensing process and the specific bond requirements differ as well.
Most states require businesses in the cannabis industry to obtain a marijuana license and permit bond in order to open for business and operate legally. However, some states impose a sales tax bond instead, which is meant to guarantee the remittance of sales taxes collected from customers to the state taxing authority.
Generally, any business in the cannabis industry is subject to a marijuana bond requirement. This includes medical and recreational marijuana dispensaries, marijuana growers, processors, edibles companies, and testing labs. All of these typically must obtain surety to ensure that they comply with state laws in this highly regulated industry.
The state agency that requires the purchase of a surety bond is the obligee. The marijuana business required to obtain a bond is the principal. And the company that underwrites and issues the bond is the surety. The terms of the bond specify the principal�s obligations.
If the principal violates any of those terms, the obligee or members of the public who have suffered a financial loss may file a claim against the principal�s marijuana bond. For example, if the principal does not remain in compliance with state rules and regulations or fails to remit sales taxes to the obligee, a claim may be filed. The surety will pay any claims found to be valid and will seek reimbursement from the principal, who is legally responsible for repaying the surety.
Every state establishes its own required bond amount, and there is wide variation from state to state. The principal will pay only a percentage of the required bond amount as the premium for a marijuana bond. That percentage is determined by the surety, based on the applicant�s credit score and financial strength. Applicants who have good credit usually pay no more than 3% of the bond amount, but credit-challenged applicants may pay a higher rate.
Our experts will help you obtain the right marijuana bond you need, regardless of the state in which you will be operating a cannabis-related business. Apply online today!
