Before you can have your license activated you will probably be required to purchase a bond, commonly known as a LICENSE bond, with a minimum value (our minimum was $10,000 in 1995 so I can imagine it's significantly more now).

This bond that you are required to purchase basically gives your customer one more pocket to reach into when and if you do not perform as your contract(s) states, and your customer wins a lawsuit against you.

The bond company you choose will provide proof of your purchase to the License Board and at that time you will pay your fee of $150 to have your license activated.A nice thing about the bond requirement is that once you have purchased your bond, you will use the same bond for all additional classifications you add to your license.

Two exceptions to this rule are: 1) If the additional classification(s) is used to start an additional company in which case, an additional bond is required and 2) If the additional classification(s) is roofing and/or pool contracting in which case, a higher bond of $10,000 is required.

We have many more articles pertaining to business available by clicking here. Have a great day! Diane

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