Nevada is a great place to open a business. Las Vegas, of course, is one of America’s most vibrant cities and a hub of entertainment and services, but the state is also home to beautiful natural landscapes and a state government that puts a lot of resources into helping small businesses grow and thrive.
However, new businesses in Nevada need to know about the state’s laws and requirements, including Nevada surety bonds that may be required for their specific industry—see What Is a Surety Bond? to learn about the basics of how surety bonds work. Here, we’ll discuss seven of Nevada’s most common types of surety bonds that new businesses may need.
Nevada Contractor License Bond
Construction contractors in Nevada must obtain a Nevada contractor license bond to apply for a Nevada contractor license. A contractor license bond guarantees that a contractor will follow all applicable laws, will not misuse a client’s funds and will complete all contractually specified work. The required penalty sum for a Nevada contractor bond can vary widely by the type of contractor license applied for and other factors. Make sure to provide complete information about your required bond type and penalty sum when applying for your Nevada contractor surety bond.
Nevada Document Preparation Service or Legal Document Assistant Bond
Nevada is one of a small number of U.S. states that requires document preparation services and legal document assistants to obtain surety bonds. Legal document preparation businesses are responsible for assisting with critical legal documents, and a Nevada document preparation surety bond guarantees that they will follow the law and not harm their clients through negligence or malfeasance. Individuals and businesses with a single document preparation registrant need a document preparation surety bond with a $25,000 penalty sum. Businesses with 2 to 25 registrants must obtain a $50,000 surety bond instead.
Document preparer surety bond amounts vary by the number of registrants who perform document preparation services Number of Registrants Surety Bond Amount 1 Registrant (or sole proprietorship) $25,000 2-25 Registrants $50,000 26-75 Registrants $75,000 76-125 Registrants $100,000 126-200 Registrants $150,000 201 or more Registrants $200,000 A registrant is any person who performs document preparation services.
Nevada Motor Vehicle Dealer Bond
Like most other states, Nevada requires automobile dealers to obtain surety bonds that guarantee the dealer’s obligation to follow the law and operate ethically. A Nevada motor vehicle dealer bond helps ensure that the dealer will fulfill all obligations to their creditors and customers. The penalty sum amounts for different types of surety bonds for Nevada motor vehicle dealers include:
Different types of Nevada dealer licenses require different surety bond amounts Dealer Type Surety Bond Amount Car Dealers or Brokers $100,000 Off-Highway Vehicles $50,000 Garages $5,000 Body Shops $10,000 Wrecking and Salvage $50,000 Vehicle Transportation $100,000 Builder/Manufacturer/Rebuilder varies
Nevada Sales Tax Bond
Any business in Nevada that collects sales tax from customers, which includes most retailers, restaurants, and bars, must apply for a Nevada sales tax permit. Many of these businesses will also need to obtain a Nevada sales tax bond to guarantee that they will pay all sales tax on time and in full as specified under Nevada Title 32. The penalty sum for a Nevada sales tax bond is based on a business’s expected taxable monthly sales. The easiest way to calculate your business’s sales tax bond is to use the Nevada SilverFlume business portal, the state’s unified platform for business registration and services.
Durable Medical Equipment Provider or Supplier (DMEPOS) Bond
To accept Medicare and bill the federal government for Medicare reimbursement, providers of durable medical equipment must obtain a DMEPOS surety bond. A DMEPOS surety bond helps prevent Medicare fraud by guaranteeing that a medical provider will follow federal law in Medicare billing for medical equipment.
Since DMEPOS surety bonds are federally required, their requirements are the same in Nevada as in every other state: a $50,000 penalty sum for each location with its own NPI number. If a provider has previously lost Medicare billing privileges, had their license suspended, or has been subject to other disciplinary action, the penalty sum required may be higher.
Nevada Notary Bond
Like most other states, Nevada requires notaries public to obtain a surety bond. This bond guarantees the financial interests of the notary’s clients if the notary commits an act of negligence or malfeasance, such as failing to check for proper ID when notarizing a document.
Nevada notary bonds require a $60,000 penalty sum. Fortunately, Nevada notary bonds are available as an instant purchase for a one-time $60 premium payment.
Whatever types of surety bonds your Nevada business needs, Surety Bonds Direct can provide them quickly, easily, and for a lower premium. Get started now with a free online quote for your Nevada surety bond, or contact our surety bond experts at 1-888-746-1026 to learn more.