Overview of California LLC Employee Worker Bond Requirements

If you want to obtain an Limited Liability Company (LLC) license in California, you will be required to get a surety bond as part of the licensing process.

The bond is required by the CSLB and its purpose is to guarantee company compliance with state regulations. In particular, it guarantees that LLCs will pay wages, interest on wages, or fringe benefits, as well as other contributions to their employees and workers.

The amount of this bond is $100,000 and it must be obtained in addition to the $15,000 contractor license bond in the state.

If an LLC, through its actions, fails to comply with the above requirements and causes damages to its employees or workers, a claim can be filed against the bond to secure compensation for claimants. Such compensation can be as high as the full amount of the bond, also known as its penal sum.

New to surety bonds? Our ‘What is a surety bond’ guide is a good place to start!

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In the following sections you can find out more about how much it costs to get bonded, what bond claims are, and how you can get bonded.

For more information about the bonding requirements for LLCs in California, call us at (866)-450-3412 to speak to our bond professionals!

Cost of Your Bond

The LLC employee worker bond in California is in the amount of $100,000. The cost of getting bonded will be a fraction of this amount. It will be determined by the surety when you apply, primarily based on your personal credit score but also on other financial information you will be asked to provide.

Applicants who have a high credit score, one of 700 FICO or above, can expect to get a rate on their bond that ranges between 1% to 2% of the total bond amount.

See the table below for an estimate of the cost of your bond, based on your credit score.

Surety Bond Cost Based on Credit Score
Surety bond name Surety bond amount Above 700 Between 650-699 Between 600-649 Below 599
California LLC employee/

worker bond

$100,000 $1,000-$2,000 $1,500-$3,000 $2,000-$4,000 $3,000-$5,000

* The table provides a bond cost ballpark estimate based on the applicant's credit score. Actual bond prices can differ due to a number of factors. For an exact quote, please complete our online application. It's fast and 100% free!.

Find out how much exactly your bond will cost by submitting a bond application form. We will contact you with a free quote on your bond, with no obligations attached!

Bad Credit Bond Program

Even if your credit score is less-than-perfect, you can still get bonded! While some sureties will turn down applicants with low credit, our Bad Credit Program is designed to enable such applicants to get a bond as easily as those with higher scores.

Due to the high amount of the bond, and because sureties have stricter requirements for applicants with lower credit, rates under this program are higher. The exact cost is determined on a case-by-case basis, and you can also improve your rate significantly over time by working on your credit score.

Read more about this option on the program page!

Bond Claims

A bond claim can occur when a bonded LLC company violates the terms of the surety bond agreement and/or the provisions of the California Business and Professions Code. Section 7071.6.5.(c) in particular states that:

“The bond required by this section shall be for the benefit of any employee damaged by his or her employer’s failure to pay wages, interest on wages, or fringe benefits and is intended to serve as an additional safeguard for workers employed by or contracted to work for a limited liability company.”

So, if a bonded LLC in California fails to comply with the above condition of the Code, this may give rise to a claim against their bond to provide compensation for any losses or damages that result out of such a violation.

When a claim against a bond is filed, the compensation extended can be as high as the full amount of the bond. The surety will cover any claims for compensation, up to that amount. Regardless of the amount of the claim, it is the bonded LLC that is ultimately liable for payments made under a bond claim, and must reimburse the surety in full.

Given the high amount of this bond, having to repay the surety for a bond claim can be very cost consuming. For this reason, LLCs that get a surety bond must carefully study and understand all the conditions placed on them under the bond agreement, and strive to comply with them.

Apply for Your Bond Here!

Begin the application process by submitting a bond form. You will then get a free quote on your bond, along with additional information about finalizing your application.

It will take about two working days for your bond to be issued. After that, we will send it to you via standard mail and email.

Start your surety bond application today! Why us?
  • The lowest possible rates
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  • Access to specialty programs, not available to small agencies

Call us at (866)-450-3412 anytime to speak to our professionals and get advice on bond-related issues!

About us:
Bryant Surety Bonds, Inc. is a surety bond agency based in Pennsylvania. Licensed in all 50 states and with access to over 20 T-listed, A-Rated bonding companies, we have the contacts, expertise, and top service to provide you with a hassle-free experience, all while offering competitive rates for your surety bond.