How to Get Licensed and Bonded in Kentucky
The words “Licensed and Bonded” following your company name can enhance credibility and increase market share, as it assures clients you are competent and reliable. Kentucky law requires myriad businesses, from health clubs to construction companies, to obtain both a license and a bond. The number and type of licenses required by the Commonwealth of Kentucky vary according to industry, as do administrating agencies and the type and amount of bond. The process may take days or weeks depending on your business.
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Instructions
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Obtain the required licenses. Sole proprietors and general partners must file a DBA (doing business as/fictitious name) with the county where their business is located; limited partnerships and corporations of all types must register with the Kentucky Secretary of State. You will require different additional licenses to open a pharmacy than to launch a hair salon; determine which agency administrates your industry and the specific licenses you need at ThinkKentucky.com.
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Verify the insurance requirements for your company with the agency that administrates your industry; some Kentucky businesses are neither required nor eligible to be bonded. All businesses must carry insurance that covers employees in case of on-the-job injury, and many must have protection against property damage or personal injury to clients. A bond differs; it is a triad agreement between you, the business owner, the regulating agency mandating it and the bonding company that provides your clients recourse in the case you do not deliver the promised goods or services.
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Research bonding producers; they are not all the same. According to Surety Bond News, published by America's largest bond agency JW Surety, your producer can make the difference between getting and not getting the job. Ensure the company you hire is interested in you; they should know federal and Kentucky law governing your industry, as well as your financial situation and goals. Your bond producer must be more invested in growing your business as than their commission. Remember the type and amount of bond you need is determined by your business; find an industry specific-listing at Surety Bond News (see Resources). Hire the bond producer whose expertise and personal investment profile are right for your company.
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