New Law in North Carolina Establishes Education Savings Account

Feb 19 Posted on

education savings account

Photo by�NeONBRAND on Unsplash

North Carolina SB 257, passed in June 2017, established an Education Savings Account for students in the state. The bill was vetoed by Gov. Roy Cooper, but his veto was overridden by the state’s General Assembly. Keep reading to see where surety bonds come in.

What’s an Education Savings Account?

North Carolina’s Education Savings Account (ESA) is a fund that will award eligible students with disabilities in the state with grants for educational spending. Applications opened on February 1, and the priority deadline is March 1; funds will be disbursed for the 2018-19 school year and recipients will be notified in April. This program is overseen by the North Carolina State Education Assistance Authority (NCSEAA).

No student can receive more than $9,000 from the ESA in a school year, with $3.4 million allocated for the program including administrative costs. The funds can only be used for educational expenses, including private school tuition and fees, textbooks, tutoring, extracurriculars, educational therapy, and approved educational technology. If the funds are used at a private school, it must be an approved school that is registered with the NCSEAA. Students’ eligibility is reevaluated every three years to ensure they are still eligible to receive ESA funds.

When students are granted ESA funds, their parent or guardian receives a debit card onto which their funds are loaded quarterly. Parents are responsible for tracking the money they spend and submitting quarterly expense reports with receipts to the NCSEAA. Any problems with expenses must be resolved each quarter before the student can receive any more funds.

When could a bond be needed?

The NCSEAA may require a bond if a school is receiving a certain amount of ESA funds. The surety bond would protect the state and recipients of ESA funds from loss of those funds should the school close, mishandle funds, or otherwise cause financial damages. While there is no current surety bond mandate by the state, SB 257 gives NCSEAA the option to require the bond if they deem it necessary.

You might not yet need this bond, but get in touch with Single Source Insurance for a quote for another North Carolina surety bond.

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How To Get A Missouri Dealer License

Feb 16 Posted on

Missouri auto dealer

Becoming a Missouri auto dealer involves getting licensed and bonded, like it does in many states. Learn more about the process, and apply online for the bond you need today.

Get Bonded

Navigating Licensing and Bonding Requirements

If you want to be a Missouri auto dealer, you’ll submit an application to the Motor Vehicle Bureau, a division of the Department of Revenue. If you sell six or more new or used vehicles in a year, you need to get this license. Here’s some of the other information the Bureau will need:

  • Business name, DBA, and address
  • Type of business (LLC, corporation, etc.)
  • Contact person
  • Requested dealer plate quantity
  • Franchise agreements (if applicable)
  • Owner information
  • $25,000 surety bond
  • Garage liability policy (if applicable)
  • Photos of building, lot, and sign

If you will be a used car dealer, you will also need a Certificate of Completion of the Dealer Educational Seminar. You’ll also need to pay licensing fees, which are prorated depending on when you apply, since Missouri auto dealer licenses expire annually on December 31. The fee starts at $150 for January applicants, decreasing monthly to $12.50 for December applicants. You’ll also need to pay $50 for your first dealer license plate, plus $10.50 for each additional plate. Those fees are also prorated if you are applying later than January.

Missouri Dealer Bond Requirements

The surety bond form Missouri auto dealer applicants need to use is available on page 54 of the Dealer Operating Manual. Auto dealers have a responsibility to customers and the state to conduct business fairly, in accordance with the law. That’s where the $25,000 surety bond comes in: when you sign the bond, it’s your promise that you will follow state and federal laws and abide by the terms of your license. If you don’t, and cause financial damage to a consumer, they can file a claim against your surety bond. If the claim is proven, the surety will pay the claim—but you’ll have to reimburse the surety for that claim amount. That means if a $10,000 claim is paid, you owe that amount to the surety company.

Get Bonded

How Much Does The Bond Cost?

The bond amount required is $25,000, and it’s subject to underwriting. That means your premium depends on a review of your credit history by the underwriter. Applicants typically pay 1-5% of the bond’s total amount, which means you might pay $250-$1,250�or more, or less. The only way to know is to get a free quote from Single Source Insurance�get in touch today!

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North Carolina Electrical Contractors’ Surety Bond Guide

Feb 14 Posted on

North Carolina electrical contractors need to get a license and a surety bond�keep reading to find out how to get yours.

Getting licensed

North Carolina electrical contractors’ licenses are issued by the state’s Board of Examiners of Electrical Contractors. Contractors are licensed by classification:

  • Limited classification�Can work on projects valued at no more than $50,000 and 600 volts
  • Intermediate classification�Can work on projects valued at no more than $130,000
  • Unlimited Classification�Can work on any project regardless of value

On the application, contractor applicants must list one or more qualified individuals, those who have taken the required exam and passed, and those who are authorized to perform electrical contracting work under the licensee. The application asks for other general business information, such as the address, DBA, and phone numbers, and licensure carries an annual fee as well:

  • Limited license�$85
  • Intermediate license�$130
  • Unlimited license�$180

North Carolina practices reciprocity with several states, so electrical contractors from Alabama, Florida, Georgia, Mississippi, Ohio, South Carolina, Texas, West Virginia, Louisiana, and Virginia can fill out a reciprocity application instead.

North Carolina electrical contractors that let their license lapse for more than a year need to reactivate it, which they can do by filing for reactivation and completing 16 hours of continuing education.

Why do electrical contractors need a bond?

Like any contracting profession, working as an electrical contractor can be risky business. To protect the state and the Board from liability, licensees get a surety bond. By getting the bond, contractors promise to assume liability when a customer suffers financial damage as a result of their illegal business practices. This means that if work is not performed as contracted, or an electrical contractor breaks a law while working on a project, the customer can file a claim on the contractor’s surety bond. If the claim is proven and paid out, the contractor must reimburse the surety.

Licensees with an intermediate or unlimited classification are subject to the surety bond requirement:

The cost of these surety bonds varies depending on a review of the applicant’s financial history. Ready to get a North Carolina electrical contractor’s bond? Get the licensing process started by getting in touch with Single Source Insurance today!

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Oregon Contractors: Becoming Licensed and Bonded

Feb 12 Posted on

Oregon contractors

In Oregon, contractors need to get licensed and get a surety bond. Keep reading to find out how to do just that.

Getting an Oregon contractors’ license

The Oregon Construction Contractors Board licenses professionals in the state; most any type of contractor needs the license. Licenses are needed for electrical, roofing, heating, concrete, and many other kinds of contractors—if you perform any kind of home improvement for compensation, you most likely need this license.

First, you need to decide if you’d like to work on commercial or residential projects. If you choose to be licensed as a commercial contractor and later want to bid on a residential project, or vice versa, you’ll need to apply for the other endorsement type. Next, you’ll need to complete at least 16 hours of approved training and pass the exam—you must apply for your Oregon contractor’s license within two years of passing the exam. Register your corporation, LLC, or DBA with the Secretary of State, and obtain general liability insurance in the correct amount ranging from $100,000 to $2,000,000 per occurrence. If you’re hiring employees, you will need workers’ compensation insurance as well.

Finally, fill out an application for either the residential, commercial, or dual license, and pay the $225 two-year license fee. You can submit your application, along with your bond, proof of insurance, and fee, either in person or via mail.

Mail to:

P.O. Box 14140
Salem, OR 97309-5052

Deliver in person to:

201 High St. SE
Ste. 600
Salem, OR 97301-3416

Why do contractors need a bond?

Construction is a high-risk business, and surety bonds help to protect clientele and anyone the contractor works with. Should the contractor fail to pay a bill, wages, or fail to complete a project according to their contract, the bond provides a means for those who suffer financial damage to seek reimbursement.

Oregon contractors’ surety bond amounts depend on the type of license they apply for. Residential contractors’ bond amounts are as follows:

  • General contractor�$20,000
  • Specialty contractor�$15,000
  • Limited contractor�$10,000
  • Developer�$20,000
  • Home services contractor�$10,000
  • Locksmith services contractor�$10,000
  • Home inspector services contractor�$10,000
  • Home performance score contractor�$10,000

Commercial contractors’ bond amounts are generally a bit higher:

  • General contractor level 1�$75,000
  • General contractor level 2�$20,000
  • Specialty contractor level 1�$50,000
  • Speciality contractor level 2�$20,000
  • Developer�$20,000

Make sure your bond is issued on the correct form, and submit the original bond, NOT a copy. Contractors working on public works projects totaling $100,000 or more need to submit a $30,000 Public Works surety bond before starting the project.

Ready to get an Oregon contractor’s surety bond? Single Source Insurance is ready to help you get bonded!

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What You Need to Know About the Oregon Highway Use Tax Bond

Feb 9 Posted on

highway use tax

Photo by�Robson Hatsukami Morgan on Unsplash

In Oregon, private and for-hire carriers need to get a highway use tax bond and maintain appropriate records. Keep reading to see what carriers need to do.

Who needs the highway use tax bond?

Motor carriers operating trucks over a certain weight in Oregon need to register with the state’s Department of Transportation in order to legally travel in the state. Carriers operating certain vehicles or combinations of vehicles need to register and get a surety bond—check the Oregon Vehicle Code Chapter 825 for a complete look at who is subject to registration and bonding.

If you’re a carrier that needs to register, here’s what ODOT asks you to do. First, you’ll need to fill out an application for an Oregon Motor Carrier Account. If applicable, complete an application for an Oregon IRP and IFTA license. Your business’s Assumed Business Name must be on file with the Secretary of State, assuming your business is based in the state. In-state carriers also need an established place of business in the state and proof of their Oregon residency.

If you’re an out-of-state applicant, you may need to submit a few more documents, so check ODOT’s requirements before submitting your registration application.

How to get bonded

The highway use tax bond ensures motor carriers are paying their taxes as the state and federal law require. The amount of the surety bond needed depends on how many vehicles the motor carrier operates in the state. It also varies depending on if the carrier is a new or established carrier. A new applicant may be treated as an established applicant if they have substantial control over the carrier’s operations in Oregon.

New carriers need surety bonds in these amounts, with a maximum bond amount of $10,000:

  • $2,000 for one vehicle
  • Plus $375 per vehicles two through five
  • Plus $250 per vehicles six through ten
  • Plus $125 per vehicle above ten vehicles

Established carriers need surety bonds in these amounts, with a maximum bond amount of $20,000:

  • $2,000 for one vehicle
  • Plus $750 per vehicles two through five
  • Plus $500 per vehicles six through ten
  • Plus $250 per vehicle above ten vehicles

Get in touch with ODOT if you have questions about registering as a motor carrier in Oregon�and get in touch with Single Source Insurance to get your surety bond today!

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Florida Alcoholic Beverage and Tobacco Industry Requires Surety Bond

Feb 7 Posted on

alcoholic beverage

Photo by�David Straight on Unsplash

Florida alcoholic beverage and tobacco businesses that sell, manufacture, or distribute those substances must be licensed and bonded to do so. Keep reading to find out how it works.

How to get an alcohol and tobacco license in Florida

The state of Florida requires alcoholic beverage and tobacco businesses to get a license before they can sell or manufacture any of those products. Licenses are issued through the Division of Alcoholic Beverages and Tobacco within the Department of Business and Professional Regulation. There are many different types of licenses issued based on the types of products the licensee will sell, manufacture, or distribute, and licensing fees and surety bond amounts vary along with the different licenses.

Since there are so many different license types, the Division has created a flow chart for applicants to ensure they don’t miss a step in the process. Let’s take a look at what it takes to get licensed as a distributor of beer and wine (JDBW). Here’s some of the information you’ll need to provide:

  • $1,250 fee for permanent license; $312.50 if temporary
  • Completed license application
  • Fingerprints (if applicable)
  • Floor plan drawn in ink of the entire premises
  • Zoning compliance approved by local zoning authority
  • Names of all interested business parties
  • Surety bond in the correct amount

Once the license application has been submitted and any mistakes corrected, the state will conduct an inspection of the business location. After the inspection, the decision is made about whether or not the license will be issued.

What does this bond do?

The reason this bond is required is to ensure alcoholic beverage and tobacco licensees pay taxes as the law requires. The amount of the bond needed varies widely. Cigarette manufacturers and distributers need a bond that is 110% of their monthly tax liability amount, but is no less than $2,000. The amount varies even more among alcoholic beverage licensees—their bond can range from $1,000 to $100,000. Taken into account are the kinds of alcoholic beverages the license allows the licensee to sell, distribute, or manufacture, and the licensee’s total tax liability. A bond over $25,000 is not common; the $100,000 surety bond is required of spiritous liquor distributors.

The purpose of the bond is to make sure that alcoholic beverage and tobacco licensees are paying their taxes on time and as required by state law. Make sure to understand how your tax schedule works as a licensee and contact the Division with your questions about licensing and taxation.

Know your bond amount and ready to get the licensing process started in Florida? Request a free quote from Single Source Insurance and get your bond fast!�

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How To Get A Tennessee Car Dealer License

Feb 2 Posted on

Tennessee motor vehicle dealer

Interested in getting a Tennessee motor vehicle dealer license? If you’re new to business licensing, here’s a quick rundown of how the process works. Learn more below, and apply online for the bond you need today.

Get Bonded

Tennessee Dealer License Requirements

In order to be eligible for the auto dealer license, applicants in Tennessee need to be prepared to begin doing business. They are licensed through the Tennessee Motor Vehicle Commission, and that agency has established a checklist of materials applicants need and criteria they must meet to get a license.

Motor vehicle dealer applicants must establish a permanent place of business that is at least 288 square feet with a restroom. The dealership’s lot must accommodate fifteen vehicles for display and have at least three customer parking spaces. The place of business can’t be at a private residence, and it must not share its lot with another business. Dealer licensees can operate one other business out of the same location, as long as the dealership remains the primary business.�Applicants also need a letter stating the business’s compliance with local zoning laws.

If the dealership will not have a repair facility on-site, applicants need a Service Agreement with a nearby auto repair shop. The dealership’s signs must be permanent, visible from the road, and display its full name in eight-inch letters. Applicants need to include photos of the entire business with the application.

Dealer Bond Requirements

Tennessee motor vehicle dealer applicants need a $50,000, two-year surety bond, a business tax license, and a financial statement showing a net worth of at least $10,000. Proof of liability and garage liability insurance is also a requirement. Any salespersons employed by the business need to apply through the state’s online portal.

If the dealership is a franchise, applicants pay a licensing fee of $400 per line-make they will sell; used auto dealer applicants pay $400.

Get Bonded

What Does This Bond Do?

The Tennessee motor vehicle dealer license bond is a dealer’s promise that they will adhere to all state and federal laws regarding their business. That means they won’t misrepresent the vehicles they’re selling or commit any sort of fraud that would cost their customers money dishonestly. But, if a customer does suffer financial damages as a result of the dealer’s unlawful business practices, the $50,000 surety bond protects them and the state from financial liability. The surety company pays out on any proven claims, but the dealer must reimburse the surety for that claim amount.

This bond must have a two-year term. Dealers can’t do business without this bond! Ready to get bonded as a Tennessee auto dealer? Single Source Insurance is ready to help!�

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How Do You Get a California Immigration Consultant Bond?

Jan 31 Posted on

immigration consultant

Photo by�Anthony DELANOIX on Unsplash

Becoming a registered immigration consultant in California is easy with this quick guide. Learn more about how to register and get bonded.

What is an immigration consultant?

An immigration consultant is someone who, for a fee, offers advice and assistance to clients on immigration matters. It’s important to note that immigration consultants are not authorized to offer legal advice. Some of their services can include:

  • Translating clients’ answers to questions on immigration forms
  • Submitting forms on a client’s behalf to U.S. Citizenship and Immigration Services
  • Referring clients to legal representation

That’s not a complete list, so make sure you understand the scope of services you can offer as an immigration consultant in California.

What do consultants need to register?

The first step in becoming an immigration consultant is registering with the California Secretary of State. Here’s what you’ll need to do and some of the documents you’ll need to submit for registration:

Here are a few pieces of information you’ll need to provide on the disclosure form:

  • Your name, date of birth, and home address and phone number
  • Business address and phone number
  • Employer information (if employed by a corporation or partnership)

Then, mail the form to the Secretary of State’s Special Filings Unit, P.O. Box 942870, Sacramento, CA 94277-2870.

You are not eligible to be an immigration consultant if you:

What does this surety bond do?

The immigration consultant surety bond protects anyone who uses their services, and the state, from financial damages. That’s because should a consultant’s business practices cause financial damages, a claim can be filed and if proven, the surety company will pay the claim up to the bond’s full amount. In this case, consultants need a $100,000 bond�that’s the total dollar amount the surety company will pay out for claims on this particular bond. But if any claims are paid, the consultant is on the hook for reimbursing the surety. Conduct business according to the law, and you’ll never need to use the bond.

Make sure to file a renewal or continuation of your surety bond with the Secretary of State before the bond expires. When you renew the bond, be sure to notify the Secretary’s office in writing within 30 days.

Ready to get the California immigration consultant bond? Single Source Insurance is ready to get you the best rate!�

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A Quick Guide to Texas Automobile Club Licensing and Bonding

Jan 29 Posted on

automobile club

Want to learn more about how to get a Texas automobile club license? Keep reading

What’s an automobile club?

Texas defines an automobile club as a business that offers car and travel related assistance to members. Services falling under the definition include those related to:

  • Community traffic safety
  • Travel and touring
  • Theft prevention or rewards
  • Maps
  • Towing
  • Emergency roadside assistance
  • Bail bonds and traffic offense legal fee reimbursement
  • The purchase of accidental injury and death benefits insurance coverage

If an automobile club offers insurance as defined above, the policy offered has to be approved by the Texas Department of Insurance.

Automobile clubs are issued Certificates of Authority by the Texas Secretary of State. The application asks clubs to specify if they are applying for initial licensure or renewal. Here’s some of the other information the Secretary’s office needs:

  • Club business name, contact person, phone number and email
  • Principal business and/or office address
  • Business type
  • Names and contact information for business owners or management
  • $150 license fee
  • Certificate of existence for corporation, or operating agreement for other business types
  • $25,000 surety bond
  • Certified copies of service contracts

Automobile club licenses expire annually on August 31, and renewal applications must be accompanied by a $150 fee.

Any agents employed by the automobile club need to be registered and pay a $10 filing fee—see the Texas Administrative Code for exemptions and registration rules. Their registrations expire one year from the date they are issued. If an agent leaves their position, the club needs to file a termination notice.

What does this bond do?

By purchasing and signing this�$25,000 surety bond, automobile club licensees agree to honor the terms of the bond. This bond requires principals (bondholders) to adhere to the Automobile Club Services Act in the Texas Transportation Code, and any other applicable state and federal laws.

Should the principal violate the bond’s terms and their actions cause financial damages for a customer, the customer can file a claim against the surety bond. The surety company pays out proven claims up to the bond’s full amount�in this case, $25,000. But the principal must reimburse the surety for paid claims, meaning liability lies with the principal.

Have more questions about the bond or ready to apply? Get in touch with Single Source Insurance for a fast, free quote!�

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Licensing and Surety Bonds for Arkansas New Car Dealers

Jan 26 Posted on

New car dealers (and used branches of new car dealerships) in Arkansas are licensed differently than used car dealers. In December, the Single Source Insurance blog went over how to get a used auto dealer license in the state; keep reading to learn about new car dealer licensing.

Getting licensed as an auto dealer

The Arkansas Motor Vehicle Commission issues new car dealers’ licenses, and requires them to submit an application plus a $100 licensing fee. Here’s some of the information applicants will need to provide:

  • Indicate whether business location is leased or owned
  • Description of facilities, including building, showroom, and lot square footage and dimensions
  • Business information including DBA, mailing address, contact person, and email
  • Makes of all vehicles that will be sold
  • $50,000 surety bond
  • Proof of adequate liability coverage
  • Pictures of showroom, lot, building, sign, and all departments
  • Applications for any salespersons plus $15 fee per application
  • Contact information for several dealership employees, including a renewal contact and the general manager

The Commission has created a dealer procedure packet that all new car dealers should read thoroughly before submitting their application. Note that new dealer applications need to be accompanied by a letter from the manufacturer stating their intent to establish the franchise.

Licenses expire on December 31 and need to be renewed annually. The license renewal application requires a $100 fee, or $25 for a new dealer’s used branch. The same rules apply to any salesperson licenses, and their renewal fee is $15.

New car dealer surety bonds

One goal of the Motor Vehicle Commission is to protect consumers from unethical and unfair business practices, and a surety bond is one of the ways they do that. When new car dealers purchase and sign the surety bond (found on page six of the application), they are agreeing to follow the state’s laws for their license. Section 23-112-308 of Subchapter 3 the Commission’s Laws details violations that can result in license suspension, revocation, and in some cases, civil or criminal penalties.

Violations like those could also result in claims being made against the dealer’s surety bond. Should a claim be proven, the surety pays the claim up to the bond’s full amount. However, the new car dealer must reimburse the surety bond for that claim. Since new car dealers no doubt want to avoid paying out expensive claims, not to mention hang onto their business license, the bond is a deterrent to shady business practices.

Ready to get bonded as an Arkansas new car dealer? Give Single Source Insurance a call today for a free quote!�

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