Consider the forms of insurance and bonds necessary to operate a business in Texas when starting one. Business insurance protects a company’s assets in the case of a lawsuit, a settlement, or a business interruption caused by sickness or a change of control. In most circumstances, a firm must be bonded in order to secure its assets and maintain a trustworthy relationship with its customers. A licensed insurance provider should be used to get business insurance and bonds.
Contact the Texas Department of Licensing and Regulation to find out what kind of business insurance and bonding you’ll need to apply for a Texas business license.
To find out if business insurance and bonding are necessary to organize a formal business organization, such as a corporation, limited liability company, or partnership, contact the Texas Secretary of State’s office (see Resources). Various types of insurance, such as general liability, worker’s compensation, malpractice, criminal, or home-based business insurance, may be required depending on the services you plan to provide. If you hire staff, consider acquiring general liability and workers’ compensation insurance to cover the costs of litigation, settlements, and medical expenditures or missed income as a result of an accident or injury on the job, even if your firm does not require particular insurance coverage.
Purchase insurance coverage from a qualified insurance provider.
Provide information about your company, the services or products you wish to offer, if you want to hire staff, and where your company is located. The names, phone numbers, email addresses, and locations of local and national insurance providers with licenses to operate in Texas can be obtained via your local chamber of commerce, small business administration office, or local business directories.
Get a surety bond from a reputable insurance company.
A surety bond keeps company owners honest when selling items to clients. The bond may be utilized by the state of Texas to pay legal fees in the case of a lawsuit or settlement. Contractors, vehicle dealers, notaries, accountants, store owners, court reporters, truck drivers, and others sometimes require surety bonds ranging from $10,000 to $50,000 or more in order to conduct business. For a list of regulated insurance carriers that provide surety bonds, go to the Small Business Administration website or call the Houston Small Business Administration office (see Resources). In many circumstances, you may obtain business insurance and bonds from the same insurance provider. To keep the bond active, you must pay a monthly fee.
How to Get a Bonded and Insured in Texas: 6 Simple Steps
If you want to sell a car in Texas without a title, you’ll need to get a title bond, also known as a lost title bond. The sale will be halted unless you can show that you have one of these surety bonds.
As a result, it’s critical to comprehend the Texas bonded title method and what it entails for you. Simply follow the six procedures outlined below to get a Texas bonded title.
Step 1: Understand the Title Bond
Before signing a title bond, you should understand how it works. Principal (title applicant), the obligee (DMV), and surety (the bonding agency).
A bonded title in Texas lets the DMV authenticate a car’s owner. If you sell a car with a bonded title and the original title returns to another owner, it may raise issues about your legal ownership and sale.
The obligee might file a claim against the bond for the vehicle’s value. If the claim is upheld following an investigation into automobile ownership, the surety will pay damages immediately.
The bondholder must then pay the surety agency’s settlement costs (plus interest and fees). Bondholders pay all claims. In Texas and other jurisdictions, title bonds are necessary to dissuade people from seeking false titles by making them accountable for any harm they create.
Step 2: Contact the DMV
All automobile sales in Texas are regulated and overseen by the Texas Department of Motor Vehicles (DMV). If your vehicle lacks a title and you intend to sell or transfer ownership to someone else, you must first request a new title from the DMV.
You will not need to get a bonded title in Texas if the DMV decides that you are the lawful owner of the car and issues a replacement title. If the DMV is unable to demonstrate ownership, you may be required to get a bonded title. If this is the case, you must provide proof of possessing the bail before the DMV can give the title.
Step 3: Complete the Documents
The next step in getting a bonded title in Texas is to submit your application’s paperwork. Gathering papers, paying a $15 filing fee, and giving confirmation of car ownership are all part of the procedure.
The following documents are included in the paperwork:
- A photocopy of your driver’s license
- A Statement of Fact for Bonded Title is a document
- Proof that you are the rightful owner of the vehicle.
The following items can be used as proof of legal ownership:
- The vehicle’s bill of sale.
- An invoice for the cost of the automobile.
- A copy of the cheque that was used to buy the automobile.
Finally, if the car was previously registered in another state, you must take it to a Texas Vehicle Inspection Station to have the Vehicle Identification Number confirmed (VIN).
Step 4: Receive Approval
The application paperwork from the previous stage will be reviewed by the Texas DMV. This can take a long time. Your application for a bonded title may also be denied by the DMV. Vehicles with liens, for example, are frequently refused for bonded titles due to the increased risk of ownership disputes resulting in bond claims.
Step 5: Procure a Title Bond in Texas
The next step is to get the appropriate bond after receiving approval from the Texas DMV for a bonded title.
You’ll need to accomplish the following to get a title bond:
- In Texas, look for a surety company that offers title bonds.
- Make an application for the bond. (A credit check and a regular bond application are usually required as part of the application procedure.)
- Wait for the surety agency’s underwriters to analyze the application papers and provide a bond pricing quote.
- Make a payment for the title bond.
When it comes to the cost of a Texas title bond, the DMV will establish the bond amount. This is the maximum amount the surety agrees to pay in settlements, and it usually mirrors the vehicle’s worth.
To answer the question of how much is a bonded title in Texas, the fee is a modest proportion of the bond’s overall value. The exact amount will be determined by the applicant’s credit, financial history, and bonding history (where applicable).
You should expect to pay extra if you have terrible credit. You won’t necessarily be rejected if you choose the correct surety agency. Work with a reputable surety firm like Viking Bond Service to make the application process quick, simple, reasonable, and accessible to everyone.
Step 6: Apply for a Bonded Title
You’ll receive paperwork indicating you’ve satisfied the DMV’s bond requirement once you’ve paid for the Texas title bond. You’ll need to take that paperwork, as well as a few others, to the county tax office, which deals with title difficulties. You should have most of the relevant documentation on hand at this point in the procedure.
Bonded title applications must be submitted within 30 days after receiving the title bond. A bonded title is valid for three years after the DMV issues it, following which the DMV provides a standard title for the same car.
