How to Open a Bail Bonds Company in Texas
A bail bond company pays for the bail of defendants awaiting trial in exchange for a fee. After the defendant's case is adjudicated, the bail money is returned to the company. If the defendant flees, the bail company must locate him or risk losing their deposit. In Texas, bail bondsmen must receive a license from the state before they can legally practice their trade. In addition, bail bond companies, like all small businesses, must register with various government agencies before opening.
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Instructions
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Apply for a license. In Texas, each county has a bail bond board, to which prospective bondsmen must apply. Both an individual and a corporation can apply for a license to issue bonds. Applicants must fill out an application describing their background and financial resources.
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Deposit collateral with the county treasurer. If the application is accepted, a corporation must then place a deposit of cash or collateral with the county treasurer to use as collateral against bonds it issues. A bail bond company can issue bonds worth no more than 10 times the amount on deposit.
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Find a physical location. Bail bond companies must have a physical space in which they can see clients. Many bail bond companies choose to place their offices near jails and courts, for easy access to clients.
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File with the county clerk's office. Small businesses in Texas must file an assumed name certificate with the county clerk stating the name of the business. In addition, bail bond companies must designate to the clerk persons who are authorized to execute bonds on its behalf.
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Register with the secretary of state. If your bail bond business if not a sole proprietorship, you must choose a legal structure of your business, such as LLC, LLP or joint partnership, and register it with the state. Consider consulting an attorney for the relative advantages of each.
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Register for taxes. Businesses with employees must register with the Internal Revenue Service, who will issue them a Employer Identification Number. In addition, in Texas, a new business must register with the state comptroller, who will issue it number of tax-specific identification numbers.
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Apply for permits. In Texas, both the state and local governments require new businesses to apply for a number of permits, such as those issued by the fire department and the police. Inquire with your city hall for information on local requirements. Fees vary between cities.
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Market yourself. One of the difficulties of bail bond businesses is the constant need to attract new clients. Let people know you're opening by advertising widely, particularly in the yellow pages and around courts and jails.
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