California LLC Employee/Worker Bond |
AmeriPro Surety Bonds |844-58-9732
Surety Bond Requirement
If you are:
- 1.) a construction company in California, WHICH
- 2.) operates as an “LLC” (limited liability corporation), in addition to any other surety bonds requirements (i.e. California contractor bond), the Contractors State License Board requires you to obtain a $100,000 LLC employee/worker surety bond.
Purpose of LLC Employee/Worker Bond
Your LLC employee/worker surety bond is a financial guarantee for the state of California which guarantees to your employees the timely payment of wages, interest on wages where applicable, and fringe benefits, pursuant to California state law as found under Section 7071.6.5 of the Business and Professions Code.
The financial guarantee is up to the limit of your LLC employee/worker bond, which is $100,000.
This surety bond is specifically required of LLC’s because unlike other types of company structures (i.e. C or S corporations, sole proprietorships), frankly, there just is not a lot of case law dealing with LLC’s.
In the eyes of the state of California and Contractor Licensing Board, LLC’s are in a bit of a legal limbo, and therefore this surety bond serves as a stop-gap measure for the benefit of your employees.
Qualifying and the Premium
Our agency offers you the California LLC employee/worker bond after completing a surety bond application and undergoing a credit review of your application by a surety bond underwriter.
To expedite the process, our agency provides your application to you via Docusign. Docusign allows you to complete, sign, and return your surety application to our agency electronically.
Conditions for Approval
Good credit is required for approval, and our rates are typically 2% of the surety bond amount required.
Your bond is issued for a standard 1 year term from the date of issuance. Multiple year discounts are available for up to a period of 3 years.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, court, probate, and other surety bonds in all 50 states.
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