Surety Bond Education

When you are out of cash, you are out of business. Cash-Flow in your Construction Business – Why positive cash-flow is the lifeblood of your business A contractor should be reviewing their financials monthly or quarterly to evaluate the performance of the company. It is easy to take a quick look at the profit & loss report, see a positive profit and give yourself high marks. But the reality is, you cannot use profits to pay your bills, you can only pay for things with cash. This makes the cash-flow statement the most important report to understand how and when […]

The Federal Motor Carrier Safety Administration (FMCSA) requires that all license applicants post a $75,000 Surety Bond on Form BMC-84. How Do I Obtain A $75,000 Freight Broker Bond? In order to obtain a $75,000 BMC-84 Freight Broker Bond you must submit an application.  As part of the application process your personal credit will be pulled.  The better your personal credit score, the better rate you will be able to obtain on this bond.  Business and personal financial statements will also be required as part of the underwriting process.  Having good working capital and net worth in your company will […]

A probate bond is a type of bond that a court may require.  The court may appoint an executor, fiduciary, trustee or administrator of a deceased person’s estate.  And the court may also require that the executor/administrator/fiduciary post a surety bond.  The surety bond will guarantee that you will uphold your fiduciary responsibility to lawfully perform your duties. How Do I Obtain A Probate Bond? In order to obtain a probate type of bond you will need to complete an application.  This application will ask a variety of questions about your personal finances and the finances of the estate that […]

If you are a new retailer of alcohol in the state of Texas you may be required to post a surety bond.  There are several different alcohol related bonds in Texas that you might be required to post including Conduct & Mixed Beverage Bonds.  We tell you more about each of those bonds below. Conduct Surety Bond One alcohol related bond you may need to post is either a $5,000 or $10,000 surety bond required by the Texas Alcoholic Beverage Commission.  The bond will guarantee that you will comply with the applicable laws of the commission.  The size of bond […]

In order to obtain an annual Over Gross Axle and Over Gross Weight Tolerance Permit in Texas you must first obtain a permit bond.  In this quick article we will tell you what this permit bond is, how to obtain the bond and how much it costs. What Is An Over Axle and Over Gross Weight Tolerance Permit Bond? This permit bond guarantees to the Texas Department of Transportation that you will pay for any damage that you cause to the highways on which you travel.  This bond covers an annual period but can also cover up to two or […]

In many states there is a requirement that the suppliers or permissive suppliers of motor fuels must collect taxes.  In the state of Texas, the Comptroller of Public Accounts requires that the suppliers, permission suppliers, distributors, exporters, importers and blenders of fuel to collect and remit tax.  Sometimes a surety bond or other security must be provided.  The bond guarantees the payment of all tax liability, penalties, interest and other costs. How Do I Obtain A Motor Fuel Tax Bond? The requirements for a Motor Fuel Tax Bond vary from state to state.  However, it is common for the following […]