The Nevada Document Preparation Bond is a type of surety bond and is required by the Nevada Secretary of State. In compliance with Nevada’s Revised Statutes Chapter 240A.120, the surety bond protects any client who has suffered damage as a result of fraud, dishonesty, negligence, or wrongdoing by the document preparation registrant. In addition, the bond protects clients from the wrongful failure or refusal by the registrant to provide services in accordance with their contract. Under this bond, the Secretary of State is also protected.
How to get a Nevada Documentation Preparation Bond
At Surety1.com, we make it easy to obtain this bond. Our simple, three step process is:
- Complete the easy to navigate and secure online application. 1
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
- Sign some paperwork and pay the bond premium
Once these steps have been completed, the Nevada Document Preparation Bond will be shipped to the bond principal (applicant) for the required original signature.
1-The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
The cost of the surety bond is usually between .75% and 3% of the bond amount. Surety1 will shop its many markets to procure the right price at the right terms.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds and maintains an A+ rating from the Better Business Bureau.
What is the bond amount?
The bond amount will vary depending upon certain factors. If the bond is to be issued to an individual, the required bond amount is $25,000. If this individual is a sole proprietorship, each hired employee must have their own individual bond.
For a business entity, the bond amount varies depending on the number of employees because the obligee wants to be sure that the bond penalty is sufficient to cover any claims that may be made against the bond. The employees are covered by the bond and not required to file an individual bond. The bond amount will be determined by the number of individuals employed that perform document preparation services. Use the following guide to determine your bond amount:
- $25,000: the business entity employs 1 individual to perform document preparation services. The bond must be in the individual’s own name.
- $50,000: the business entity employs 2 – 25
- $75,000: 26 – 75
- $100,000: 76 – 125
- $150,000: 126 – 200
- $200,000: over 200
The Nevada Document Preparation Bond is continuous until cancelled. However, the Office of the Secretary of State must receive proof of annual bond renewal. Proof can be in the form of a continuation certificate or a paid invoice showing a zero balance due.
Who needs a Document Preparation Bond?
If you provide assistance in certain legal matters for compensation and under the direction of a client, you need to be a licensed document preparation service. These matters include:
- Preparing or completing any pleading, application, or other document for the client;
- Preparing or assisting in the preparation of all or substantially all of a federal or state tax return or claim for a tax refund;
- Preparing or assisting in the preparation of a will, trust, or other estate planning document;
- Preparing or assisting in the preparation of a divorce decree, child support order, or other family law document;
- Preparing or assisting in the preparation of a bankruptcy petition or other debt relief document.
One of the requirements to be licensed is the surety bond. For more information visit the Nevada Secretary of State’s Office https://www.nvsos.gov/sos