There are quite a few cities in the US that have made it mandatory for carwash owners to procure a carwash bond when getting a license. Los Angeles is one of them.

Like other surety bonds, carwash bonds provide a promise and protection for the public and the government.

In spite of this, the current bond requirements have caused a lot of debate and controversy within the industry. 

Car wash Bonds – Explained:

A surety bond provides protection from financial loss, fraud, or other problems to the obligees of the bond and may even offer financial reimbursement in the case of a default.

Similarly, car wash bonds serve as a license or a permit bond and a wage and welfare bond.

When an owner applies for a car wash license, for example, the license and permit bond will ensure that they operate within the industry and state regulators' standards.

If they deviate from these standard practices, customers can file a compensation claim, and the surety bond backs their claim. The surety compensates the customer, and the company is indebted to the surety to pay them back. Therefore, surety works as a line of credit as well.

Wage and welfare bonds ensure that all employees are paid fair wages and receive their promised fringe benefits and bonuses. If an employer refuses to provide these, the employee can file a claim against the bond to receive remuneration.

Car wash Bonds In Los Angeles, California:

From January 2014 onwards, the California government made it mandatory for every person applying for carwash licenses to have a $150,000 California carwash bond.

This bond needs to conform with the provisions of Labor Code Section 2055(b).

In June of the same year, New York City also passed a carwash license and bond requirement for businesses.

How To Obtain A Car wash Bond In LA:

To get a carwash license in California, you first need to apply for the permit on the website for the California Car Washing and Polishing registration.

Next, you'll have to buy a carwash bond worth 150,000 dollars. This bond will cover the assurance that as the owner, you'll pay your workers fair wages and that you'll follow the local government's employment regulations.

If you default on either of these promises, anyone can use the bond to make a claim against you.

Depending on your credit, you may be paying around 1-15% of the bond amount to be bonded.

This part can be tricky, which is why we suggest getting in touch with the experts at SuretyEZ. We can help you obtain carwash bonds in Los Angeles with ease so that you are one step closer to starting your business.

Contact us on our website to learn how to buy a surety bond that suits you.