Bail bonding companies are valuable in every community. Many people would have to stay in jail if they couldn’t pay a percentage of the bond. Here are a few tips for anyone planning on starting a bonding company. First and foremost, one has to follow the state and local rules.
The Insurance Commissioner’s Office regulates bail bonding in most states. After all, bonding is a form of insurance. It’s smart to develop a business plan that determines how much capital is needed. You will need to calculate start-up costs and projected revenue. Register the business with the Secretary of State’s office and file the proper paperwork. Most businesses are formed as corporations to limit the owner’s liability. Every business pays taxes so a taxpayer i.d. number is needed from the I.R.S. Further, one must register with the state and local governments for tax purposes. Most local governments require businesses to have a license.
Why so Many Rules and Regulations?
The state wants to make sure bondsmen are trustworthy and reliable. Bondsmen must stand for people accused of all types of crimes. There are many types of bonds including immigration bail bonds cincinnati oh. Other bond types include cash, property, surety, and federal. Surety bonds are what most people are familiar with. Individuals pay a percentage of the bail amount so the company stands for the rest. That’s why it pays to be fiscally responsible. Bonding companies work closely with the Sheriff who makes sure bonds are paid.
A bondsman must be at least 18 and have no criminal background. Candidates must fill out the Insurance Commissioner’s forms and receive state approval. Next, most jurisdictions require candidates to take an extensive course. Indeed, candidates have a lot of information to learn. The license exam can be daunting. The test consists of 60 multiple-choice questions and 10 survey questions. Individuals must make a score of 70 or higher to pass. Once the candidate has a license, they must get a surety bond. The surety bond is a guarantee to the government the company will follow the law.
A bondsman must set up bank accounts and find a physical location. Most companies find a space near the courthouse or jail. Bonding is a 24-hour a day operation. Therefore, most companies have big neon signs that show up at night. Potential clients have to be able to see and find you. In addition, the company must set its rates. For instance, the standard rate is ten percent of the bond amount. However, the bondsman may charge more if the bail amount is over $10,000.
Let Them Get To Know The Company
Have a grand opening and invite local government officials, prosecutors and defense attorneys. Meet all the people that are important to your business. Remember, you are the best advertisement. Try to make a good impression and give out cards constantly. The Sheriff wants to know you are trustworthy. Tell them about the system you must keep track of your clients and make sure they go to court.