Video: Orange County Small Business Legal Advice for Incorporating a Bail Bond Company
Read this page to learn about the first legal step to incorporate a bail bond company. Get tips from an expert Orange County business lawyer to make the process easier.
Legal Requirements for Incorporating Bail Bond Companies are Different
Like other professionals licensed by the state of California, bail bondsmen face unique legal requirements when incorporating their business. A typical business corporation doesn’t face the same challenges. These legal requirements can complicate the process of incorporation for bail bond companies, and it’s important to know what they are. One major difference when it comes to incorporating a bail bond company involves the selection of a corporate name.
The First Thing You Must Do to Incorporate Your Bail Bond Company
For a typical business corporation, the first step in forming a corporation is filing articles of incorporation with the Secretary of State. They’re often submitted by an Orange County small business attorney. In the case of a bail bond company, however, there’s a preliminary step – getting your corporate name approved by the Department of Insurance.
Major consequences could ensue if you skip this important step. For example, let’s say that you start the process to incorporate your business by filing articles of incorporation and get your business name approved by the Secretary of State. Then you submit that name to the California Department of Insurance only to have it rejected.
You’re now left with two flawed alternatives. First, you can amend your articles of incorporation with the Secretary of State. Of course, this option costs both time and money.
Second, you may choose to do business under a fictitious business name, which is not always desirable. With a little information, you can avoid this situation and the resulting headaches. It’s advisable to contact a corporate lawyer in Orange County if you need help.
Three Steps to Get Your Corporate Name Accepted by the Department of Insurance
To get started, visit the California Department of Insurance website. Click the link for Agents and Brokers near the top of the page. Then click on Applying for a License. Finally, click on Business Entity License. On this page, there are three specific actions you can take to select a corporate name that meets California’s legal requirements for bail bond companies.
1. Definitive Words Must Be Included in Your Corporate Name.
Under Name Approval Criteria, you’ll see a link for Required Definitive Words. Near the bottom of the page, you’ll note that a bail applicant or a bail licensee must include the word “bail” in the corporate name.
Therefore, if you submit a name like “ABC Enterprises” for approval with the Department of Insurance, they will reject it. Examples of acceptable alternatives include names like “ABC Bail Company” or “ABC Bail Corporation.”
2. Review the Exceptions to Name Approval Requirements and Unacceptable Words/Phrases.
View the Exceptions to Name Approval Requirements page. Then review the list of unacceptable words and phrases that must not be used in your corporate name. Use of these prohibited words and phrases in your corporate name guarantees its rejection by the Department of Insurance.
3. Perform A Search for the Name You Want.
Finally, take advantage of the Business Entity Name Search field. There you can run a convenient, but unofficial, check to see if the name you want is available. If the two first words of your corporate name conflict with an existing name, the Department of Insurance will not permit you to use that name.
As professionals licensed by the state of California, bail bond companies face additional hurdles when forming a corporation. And any mistakes could prove costly and time consuming.
If you’re a bail bondsman interested in setting up a corporation, make sure it’s formed properly. Contact expert Orange County business lawyer Andy Gale today. He can give you legal advice specific to your business. Let Andy deal with the complexities of forming your bail bond corporation. You can get back to work on your primary business. Call us at +1 (714) 634-4838.