I'm a starting a business and have a couple of questions about licenses, bonding and LLC?
I am starting an organizing business and I want to come off really professional by having the appropriate licenses. I know how to get a business license but what about the other stuff? What is bonding? What is an LLC? How much does it cost? Also, I would want to have insurance so that if I slip and fall on my ass or break something I’ll be covered. What would that cost? Please advise. Thank you !
In regards to bonding; If your business requires a license bond (i.e. contractor, motor vehicle dealer, notary, tax preparer, etc.), then you would need to apply for the amount and specific type of bond required. These bonds usually require credit and experience to support the amount of the bond. One site that can write these bonds even with poor credit is: http://www.southcoastsurety.com .
A bond for general business is usually a form of fidelity bond. These bonds are easily written and require no qualifications nor credit. They are relatively inexpensive. This bond protects your customers from theft by your employees.
For a general business bond, which would be fidelity (Business Services) bond and it is very similar to insurance. It protects your clients in the event an employee is arrested and convicted for stealing from them. You will not be expected to cover the loss.
The rates are based upon the number of employees and the amount of coverage. They range from a $5000 bond with less than 5 employees at $100 to a $100,000 with 25 employees less than $800.
These are instant issue bonds are readily available on the internet or through your local insurance agent. You can run a Google search for Janitorial Bond and find a site that has on line submissions. One of those sites processing on line applications is http://www.southcoastsurety.com.
You can get more information on this bond and a link to the application at http://www.southcoastsurety.com/fidelity-bonds.htm
An LLC is a legal format for a business, like a corporation.
For all forms of insurance coverage, you should check with a local insurance agent familiar with business insurance.
Go to http://www.score.org/template_gallery.html and download the Excel template for estimating start up costs.
Go to your states web site and then to the Secretary of State section. There you will find a down-loadable one page form. Fill it out and mail it in, together with the filing fee, and in about a week, you’ll be an LLC.