Video Summary:

In this transcript from a video by Gale & Vallance, attorney Andy Gale of Orange County explains important bail bond company legal requirements in California when forming a corporation. He highlights the unique steps bail bondsmen must follow, particularly with corporate name approval through the California Department of Insurance, before filing articles of incorporation with the Secretary of State.

To learn more about the bail bond company legal requirements California business owners must follow before incorporation, check out our detailed article on starting a bail bond corporation.

This video is for educational purposes only and does not constitute legal advice. For guidance about your specific situation, we recommend contacting a qualified attorney.

00:00:05 – Introduction

Hi. My name’s Andy Gale. I’m a business attorney and I practice here in Orange County California.

00:00:11 – Client Example: Bail Bond Corporation Formation

I had a client retain us this week who wanted to form a corporation for his bail bond company.

And bail bondsmen, like a lot of other people, are licensed professionals in the state of California, and whenever you have a license that’s given to you by the state, a lot of times there are some unique requirements that are placed upon you that are not placed on the typical business corporation.

And so I want to just walk you through one of those examples, which happens to do with how you select and how you get approved the name for your bail bond corporation.

00:00:44 – First Step: Articles of Incorporation vs. Department of Insurance Approval

Many times, the first step in getting your corporation formed is filing the articles of incorporation with the Secretary of State.

However, in the case of a bail bond corporation, there’s actually a preliminary step, and that step is getting your corporate name approved by the Department of Insurance.

If you happen to do things in reverse, that is file your articles of incorporation, get a name approved by the Secretary of State, and then go check with the Department of Insurance, the Department of Insurance could reject the proposed name that you have and then you’ll be stuck with either having to go back and amend your articles of incorporation with the Secretary of State or from that point forward doing business under a fictitious business name, which is not always desirable.

00:01:39 – Steps to Get Your Bail Bond Corporate Name Approved

So the steps that you need to go through in order to you get your name approved are these.

First, you’d go to the California Department of Insurance at this URL, and you would want to familiarize yourself with what the descriptive or definitive words are that need to appear inside the corporate name.

00:01:57 – Required Word for Bail Bond Companies

So in this particular case, we will go to the definitive word section and you will find that, under the law, what is required for a bail bond company is that a bail applicant or a bail licensee must include the word “bail” in its corporate name.

So if you just happen to do ABC Enterprises and submit that for approval with the Department of Insurance, they will reject it, but if you have the ABC Bail Company, or ABC Bail Corporation, or something with the word “bail” in it then that would be approved.

00:02:36 – Exceptions and Unacceptable Words

Next what you need to do is you need to review the Exceptions to Name Approval Requirements, and there is an entire list put out in the code found here in the Department of Insurance’s website. Sorry.

And it’s found in the California Insurance Code regulations where they will talk about the exceptions to the name approval requirements, and then the list of unacceptable words is here in California Code of Regulations, and none of these words can appear in your corporate name. Otherwise that will get rejected as well.

00:03:19 – Quick Name Search

And then finally, what you want to do to do a “quick and dirty” search, if you will, is go to the business entity name search here, and you will click on your name search here, and you can run a check.

If your name, if the two first words of your corporate name conflicts with another, in this case bail bond company, then the Department of Insurance will not permit you to use that name.

00:03:45 – Closing Remarks

So I hope that was helpful in letting you know some of the nuances that apply to forming a bail bond corporation.

If you’re a bail bondsman and are interested in forming a corporation in the state of California, I’d love to be able to help you. Please give me a call.

My name again is Andy Gale. I’m an attorney practicing in Orange County, California.

Conclusion: Bail Bond Company Legal Requirements in California

Forming a bail bond corporation involves specific legal requirements that go beyond a standard business filing. As attorney Andy Gale explains, bail bondsmen must ensure their corporate name complies with Department of Insurance regulations before proceeding with incorporation. These bail bond company legal requirements in California are critical to avoid delays, rejections, or costly amendments. Always consult with a qualified attorney for personalized guidance.