Salem City License Bond
Under the Title III of the Revised Salem City Code, some businesses are required to apply for a license with the city in order to operate. Examples of these include short-term rental businesses, vehicles for hire agencies, and mobile food units. A full list of the businesses that needs to apply for a license bond is written in the City’s business license list.
What is the Salem City License Bond?
The Salem City License Bond ensures that public welfare, safety, and health is ensured with the businesses that will operate on the city. Applications will require a license fee that will vary for the different types of businesses. A price range can be seen through the city’s guide for license fees.
For the step-by-step process of applying for a license bond in the city, visit their application for business license guide.
Why do you need the Salem City License Bond?
The bond is a prerequisite prior to the beginning of operations for specific businesses that is cited in the Title III of the Revised Salem City Code. Additionally, the applicants will get the following benefits: good reputation of your company; financial security and credential boost; available full line of credit; confidentiality of your transactions - unless required by law; and, access to professional advice or counseling from lawyers, estimators, and similar professionals.
How does the Salem City License Bond work?
The parties in the agreement are the Principal (business or permittee), Obligee (City of Salem), and Bond Company or Obligor (surety bond carrier). The bond must be filed with the Salem City and must be issued by a surety bond provider certified by Oregon’s Insurance Department.
The Bond Company will guarantee the compensation (performance bond) of the Obligee in case the Principal fails to deliver agreed upon services or violate any licensing provisions. The Bond Company will receive and assess the validity of all public claims where claims may only amount to the total penal sum arranged in the bond form. The Principal shall reimburse all expenses covered by the Bond Company.
How much does it cost?
Normally, applicants of the Salem City License Bond will find it priced around 1-3% of the total bond amount. If you are planning to secure this bond, take note of the following factors as these will typically affect the cost:
- Applicant’s credit score;
- Industry experience;
- Business history; and
- Surety provider’s background
How can I secure the bond?
Get your Salem City License Bond quickly and hassle-free by transacting with a reputable surety company. Get in touch with us today to get your surety bond related questions answered and to secure proper licensing in no time.
For the speedy processing and issuance of your bond, make sure you gather and provide the following information as accurately as possible:
- Nature of your business
- Credit Score
- Financial strength
Rest assured our expert surety bond agents will guide you from the time of your application until the issuance of your bond. Once the assessment is done, we will promptly issue your bond and send it your way!