A North Carolina Motor Fuels Bond is a type of surety bond required by the North Carolina Department of Revenue to obtain a license for the wholesale distribution or sale of motor fuels. This bond ensures that the dealer will comply with state regulations and pay any taxes or fees owed to the state. The most common license and bond is a Motor Fuels Distributor Bond. A surety bond in the amount of two times the average monthly motor fuel tax liability, minimum $2,000 maximum $500,000, is required to obtain a distributor license. The cost of the surety bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150.
How to Get a North Carolina Motor Fuels Bond
At Surety1.com we make it easy to obtain this surety 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. 2
- Sign some paperwork and pay the bond premium
Once these steps have been completed, the North Carolina Motor Fuels Bond will be shipped to the bond applicant.
1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
2- Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required
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 nationwide since 2003.
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Who Needs This Surety Bond?
Businesses storing, delivering, or selling fuel in North Carolina may be required to have a license. The following are the license types:
- Refiner
- Terminal Operator
- Supplier
- Distributor
- Importer
- Exporter
- Blender
- Fuel Alcohol Provider
- Biodiesel Provider
- Alternative Fuel Provider
- Retailer of Alternative Fuel
- Bulk End-User of Alternative Fuel
- Kerosene Distributor
- Kerosene Supplier
- Dyed Diesel Distributor
- and Transporter
Each license type has a bond requirement attached to it in an amount of $2,000 to $2,000,000
Obtaining a North Carolina Motor Fuels Dealer License
The North Carolina Department of Revenue is responsible for licensing motor fuel dealers. To obtain a license, you’ll typically need to:
- Complete an Application: Submit the required application forms to the Department of Revenue.
- Provide Documentation: Furnish supporting documents, such as proof of business ownership, financial information, and background checks.
- Obtain a North Carolina Motor Fuels Bond
- Pay Fees: Pay the applicable licensing fees.
- Meet Other Requirements: Comply with any additional requirements, such as safety regulations or environmental permits.
Once your application is approved, you’ll receive a motor fuel dealer license.
Potential Consequences of Non-Compliance
Failing to comply with North Carolina’s motor fuel dealer regulations can lead to severe consequences, including:
- License Revocation: The Department of Revenue may revoke your license, preventing you from operating as a motor fuel dealer.
- Financial Penalties: You may face significant fines or penalties for non-compliance.
- Legal Action: In serious cases, you could face legal action, including criminal charges.
- Reputation Damage: Non-compliance can tarnish your business reputation and harm your relationships with customers and suppliers.
It’s essential to ensure strict adherence to all regulations to avoid these consequences.
The information provided above is for general informational purposes only and does not constitute legal advice. Do not rely solely on the information presented here as a substitute for professional legal counsel.
How to Get Your North Carolina Motor Fuels Bond
- Complete an online application. It’s free and no-obligation.
- One of our surety experts will contact you with a firm quote and an agreement to sign.
- Provide payment and your signed agreement, and then you will receive your Surety Bond!
If you have any questions, please call us at 877-654-2327.
Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.