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Llc employee worker bond form 13b 20 2025

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This document is a bond form required by the Contractors State License Board of California for LLCs, ensuring that the principal pays all wages and benefits to employees. It outlines the bond's terms, conditions, and obligations, including cancellation provisions and liability limitations as per Section 7071.6.5 of the Business and Professions Code.

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What does it mean to put a bond on an employee?

Employee Commitment Bonding The terms of this kind of bond state that, in return for receiving training and financial investment in the newly hired person, the employee will agree to remain with the company for a specified period of time.

How much does a $20,000 surety bond cost?

Surety Bond Cost Table Surety Bond AmountYearly Premium Excellent Credit (675 and above)Bad Credit (599 and below) $20,000 $200 - $600 $1,000 - $2,000 $25,000 $250 - $750 $1,250 - $2,500 $30,000 $300 - $900 $1,500 - $3,0007 more rows

How much is an LLC bond in California?

California LLC Employee / Worker Bond Requirements The state Contractors State License Board requires a $100,000 bond. This requirement is only for LLCs, in addition to posting the regular contractor license bond needed for the licensing.

How much does a $25,000 contractors bond cost?

Surety bond premiums are calculated as a small percentage of the bond amount. $25,000 surety bonds typically cost 0.510% of the bond amount, or $125$2,500. Highly qualified applicants with strong credit might pay just $125 to $250, while an individual with poor credit will receive a higher rate.

What are the requirements for a bond in the CSLB?

Requirements for the Contractors Bond: The bond must be in the amount of $25,000. The business name and license number on the bond must correspond exactly with the business name and license number on the CSLBs records. The bond must have the signature of the attorney-in-fact for the surety company.

What is an LLC employee worker bond?

A California LLC Employee/Worker Bond is a $100,000 surety bond required by the Contractors State Licensing Board (CSLB) to protect workers from any issues concerning pay and benefits. This bond is necessary due to a lack of case law that deals with limited liability companies.

How much does a $5000 surety bond cost?

For applicants with good credit, surety bonds usually cost between 1% and 5% of their value. Therefore, for a surety bond of $5,000, an applicant with a strong credit history can expect to pay between $50 and $250.

Llc employee worker bond form 13b 20 2025

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