Surety bonds are not only for contractors or individuals involved in court proceedings. When you're entangled in the commotion of starting a new business, it's pretty easy to ignore the need for surety bonds. Getting a surety bond is the first step to obtaining licenses and permits for new business owners.
Here, we list down 10 types of businesses in Arizona that need to get bonded:
The Arizona Department of Transportation requires all aircraft dealers to post a surety bond with the Aircraft Registration Unit of the said department. An Aircraft Dealer Bond serves as a guarantee that aircraft dealers will adhere to all state regulations and all applicable laws. Also, the bond demonstrates the sincerity of intention on the part of aircraft dealers in showing their customers, partners, and associates that they will not engage in any unfavorable transactions that will compromise public safety and welfare.
Automotive recyclers are those who purchase or obtain motor vehicles for the sole purpose of selling, disposing or disassembling parts or accessories and dismantling six or more vehicles in a year. According to the Arizona Revised Statutes, Title 28, Chapter 10, automotive recyclers in Arizona must be authorized and qualified to conduct their automotive recycling operations legally. This is why there is a need to post an Automotive Recycler Bond.
Business service providers
Business service providers may perform many things: they may require delivery of financial services to bank customers, the supply of temporary personnel, or transfer of goods to consumers of a retail store. In Arizona, business service providers must post a Business Service Bond to protect their clients from employee theft and other offenses committed during work at the residence or office of a client. This surety bond not only protects business investments but safeguards the company against crooked employees that it may have employed.
Even debt collection agencies operating in the state need to acquire surety bonds. A Collection Agency Bond ensures that collection agencies perform ethical and proper collection procedures involving debts resulting from the use of credit cards, delayed/non-payments of automobile loans, non-payment of medical bills, business-related debts, unpaid utility and mobile phone costs, and so on.
Debt management services
The Arizona Department of Financial Institutions requires companies intending to provide debt management services to post a surety bond. A Debt Management Bond protects clients from contract coercion or alterations and ensures compliance with all laws applicable to the delivery of debt management services.
Under the Arizona Employment Agency guidelines, any person or business entity who intends to match the employment needs of a business owner to job seekers possessing specific skills set must post a surety bond. Called as Employment Agency Bond, it guarantees the agency’s financial capacity and compliance with all state licensing regulations.
The state requires janitorial service providers to purchase a surety bond before conducting business. The Janitorial Service Bond ensures that janitorial services will comply with state laws and standard business regulations. It also serves as further proof that the business carries proper government permissions and licenses to offer cleaning services to clients.
MMA and boxing promoters
All participating mixed martial artists (MMA) and boxing promoters must post a surety bond to secure appropriate licensing to conduct business. An MMA and Boxing Promoter Bond enables MMA and boxing promoters to conduct and sponsor MMA and boxing matches legitimately.
Private investigation agencies
Any person or business that carries out activities as a private investigator in any place within the state of Arizona is required to obtain a surety bond. The Private Investigator Bond is part of the licensing requirements that protect clients from deceptive acts done by private investigators. This surety bond also ensures adherence to state laws and local statutes regarding public safety concerns when conducting investigations.
Wholesale pharmacies are those who operate a business wherein they sell pharmaceutical drugs or drug sundries at wholesale. These pharmacies are often required to purchase a surety bond. A Wholesale Pharmacy Bond protects pharmacies if their managers/employees commit unethical conduct when giving prescriptions, running the pharmacy business, and selling over-the-counter drugs to the general public.
There are still many businesses that Arizona state laws require to post a surety bond. For more information about Arizona surety bonds, feel free to call us today.