If you are wondering about surety bonds and whether or not you are supposed to have one, that is a great question to be asking. The fact is, if you are supposed to have a surety bond in place (as per the federal or state government ) and don’t, you are in a very dangerous place as far as the government is concerned, because they have the ability and the power to come in and shut you down. See, if you are mandated to have a surety bond in place, that is because they have deemed the risk to the general public to be too great to not mandate that requirement upon persons in your line of work. As is similar in taxes, it is better that you do the legwork on the front end and get it in place, because if you have a surety bond already secured by the time the government finds you, you will probably be ok.
Businesses that typically are required to have a surety bond include but are not limited to car dealers, some insurance companies, some construction companies working in certain niche industries (depending on the local government many times), and the like.
These days, you can probably Google what you want to know about it and find it out there on the web. While that is true, I still recommend double checking with your local authorities (or as close to local as you can get), because, as they say, ignorance of the law is no excuse. IF you are in violation of a surety bond statute or code and your government officials find out, “the internet told me thus and so about surety bonds” isn’t going to get you very far.
Preparation is always a good idea, and in few cases more than surety bonds is it more important. While surety bonds are a good idea anyway, when they are mandated by the government it is a completely different ballgame.
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