Why You Need a Document Preparation Bond in Nevada
Who Needs A Document Preparation Bond?
Businesses or individuals who profit from preparing clients’ legal documents need to register with the Nevada Secretary of State. You will find the wording of the provision on this government site. The registration includes getting bonded in the amount of $50,000. The bond should continue throughout the duration of the license or registration with the Secretary of State. A Document Prep bond must be renewed with each year the the license is valid in order to do business legally. You can apply for a Document Prep License and get started on the requirements by visiting The Secretary of State Website for more information.
How Does This Bond Work?
The bond functions to protect the clients of the business rather than the businessman. For the individual conducting document preparation business, the bond is an incentive for a business to work in accordance with the law. If a document prep business is working illegally and the client suffers as a result, then the client can make a claim on the bond. The claim will then pay out the damages to the client, leaving the business to reinstate the surety company in the dollar amount of the claim.
Why Would I Need A Document Preparation Bond?
In a field where misconduct and fraud are prevalent, the bond helps to regulate the market. This way, the Secretary of State may streamline accountability for those who are licensed to prepare documents in Nevada. Before the bond requirement existed, there was no recourse for the Secretary of State to correct or prevent wrongdoing. Now, the bond requirement does just that.
Is Getting Bonded Affordable?
Applying with Surety1 will guarantee you the best premium for the $50,000 bond requirement. Depending on the soft credit inquiry that we administer, the lowest premium could be between 1-2% of the bond amount. This is of the best premium rates among bonding agencies. Our competitors could charge substantially more. Go ahead and submit our free application, we will get you a firm quote in 1-2 business days!