Surety Bond Requirements in Michigan
Michigan requires surety bonds for various industries and professions to ensure compliance with state regulations, protect consumers, and uphold contractual obligations. The required surety bond and amount depend on your industry.
There are four general surety bond types in Michigan:
- License and Permit Bonds: These bonds are mandatory for various professions as part of their licensing requirements. Examples are contractors, auto dealers, money transmitters, and more.
- Contract Bonds: These bonds are required mostly in the construction industry, ensuring contractual obligations such as project completion and payment to subcontractors.
- Court Bonds: Required in legal contexts, protecting parties involved in a specific case.
- Fidelity Bonds: Not required by the state of Michigan but adding a layer of protection to businesses against employee misconduct.
Cities like Detroit, Grand Rapids, and Lansing may also have specific bonding requirements.
Most Common Surety Bonds in Michigan
Here are some of the surety bonds requested the most in Michigan:
Auto Dealer Bond: Required by the Michigan Department of State for individuals selling more than five vehicles annually. This $25,000 bond ensures compliance with state regulations and protects consumers from fraudulent practices.
Contractor License Bond: Certain municipalities in Michigan require contractors to obtain a license bond to ensure adherence to local building codes and regulations. For example, St. Clair contractors must secure a bond amount starting at $1,000, which increases based on the project's square footage.
Notary Bond: Michigan notaries are required to post a $10,000 surety bond to protect the public from errors or misconduct. This bond is filed with the county clerk's office upon application for a notary commission.
Money Transmitter Bond: Businesses engaged in money transmission services in Michigan are required to secure a surety bond to ensure compliance with financial regulations and protect consumers from fraud.
Collection Agency Bond: Collection agencies operating in Michigan must obtain a surety bond to guarantee ethical practices and compliance with state laws and to safeguard consumers from abusive collection tactics.
Private Investigator Bond: Private investigators in Michigan are required to post a surety bond as part of their licensing process, ensuring adherence to state regulations and protecting clients from unethical behavior.
Business Service Bonds: Protects against theft when working in clients' homes or businesses. You can get this bond instantly online for as low as $125 for a 1-year term.
Certificate of Title Bond: Necessary as a way to prove vehicle ownership when you want to sell or transfer a vehicle without titles.
Mortgage Broker, Lender, or Servicer Bond: Required for specific mortgage professionals operating in Michigan. Mortgage brokers and lenders in Michigan must obtain a $25,000 surety bond as part of their licensing requirements.
Proprietary School Bond: Required for private or for-profit schools operating in Michigan.
For assistance in finding the right bond for your needs, contact our experts at 866.450.3412.
Find the Bond You Need
The table below contains a list of only the most popular surety bonds. If you can't find yours, fill out our online application and select "Not in the list".
| Freight Broker Bond (BMC-84) | FMCSA | N/A | Apply Now |
| Contractor License (No P&P Language) Bond | Michigan Dept. of Licensing and regulatory Affairs | Residential Builder and/or Residential maintenance | Apply Now |
| Contractor License (No P&P Language) Bond | Dept of Licensing and Regulatory Affairs | Security Alarm Contractor Bond | Apply Now |
| Contractor License Performance & Payment (State) Bond | Dept of Licensing & Regulatory Affairs Lic. Div. | Residential Builder and/or Residential Maintenance | Apply Now |
| Excess Weight, Other Highway & Street Permit Bond | City of Detroit,County of Wayne, State of Michigan | Uniform Bond | Apply Now |
| Collection Agency Bond | Bureau of Commercial Services, Licensing Division | Collection Agency | Apply Now |
| Collection Agency Bond | Department of Insurance and Financial Services | Non-Depository Sales Finance Company and/or Out-O | Apply Now |
| Collection Agency Bond | Department of Insurance and Financial Services | Depository Financial Institution - Sales Finance C | Apply Now |
| Professional Fund Raisers Bond | Department of Attorney General-Charitable Trust Sec | Uniform Professional Fund Raiser Surety Bond | Apply Now |
| Mortgage Broker (1st & 2nd Mortgages) Bond | OFIR | Mortgage Lender | Apply Now |
| Mortgage Broker (1st & 2nd Mortgages) Bond | Office of Financial and Insurance Services | First Mortgage Broker, Lender, and/or Servicer Bon | Apply Now |
| Mortgage Broker (1st & 2nd Mortgages) Bond | Office of Financial and Insurance Regulation | Mortgage Loan Originator - Individual | Apply Now |
| Mortgage Broker (1st & 2nd Mortgages) Bond | OFIR Consumer Finance Section | Mortgage Loan Originator - Company | Apply Now |
| Mortgage Broker (1st & 2nd Mortgages) Bond | Commissioner, Office of Financial & insurance | SECOND Mortgage Broker, Lender, and/or Servicer | Apply Now |
| Mortgage Lender/Banker (1st & 2nd Mort.) Bond | Office of Financial and Insurance Services | Bond - FIRST Mortgage Broker, Lender, and/or Servi | Apply Now |
| Mortgage Broker (2nd Mortgages Only) Bond | Office of Financial and Insurance Regulation | Second Mortgage Broker, Lender, and/or Servicer | Apply Now |
| Defective Title Bond | Michigan Department of State | Vehicle Uniform Bond | Apply Now |
| Defective Title Bond | State of Michigan | Manufactured Home Uniform Bond | Apply Now |
| Auto & Mobile Home Dealers (New & Used) Bond | Department of State | Uniform Vehicle Dealer | Apply Now |
| Auto & Mobile Home Dealers (Used Only, No New) Bond | Department of State | Motor Vehicle Dealer | Apply Now |
| Motor Vehicle (Non-Dealer, Not Listed) Bond | Michigan - Department of State | Uniform Manufactured Housing Retailer's Bond | Apply Now |
| Motor Vehicle (Non-Dealer, Not Listed) Bond | Dept of Licensing and Regulatory Affairs | Uniform Manufactured Housing Retailer's Consumer D | Apply Now |
| Sport Permits Bond | MI Department of Licensing and regulatory Affairs | Unarmed Combat License Bond | Apply Now |
| Detectives Bond | Dept. of Licensing and Regulatory Affairs | Security Guard Agency | Apply Now |
| Detectives Bond | Michigan Department of Energy, Labor and Economic | Professional Investigator or Professional Investig | Apply Now |
| Employment Agencies Bond | State of Michigan | Professional Employer Organization Bond | Apply Now |
| Professional Licenses (All Other) Bond | Michigan Department of State | Information Purchaser's Uniform Surety Bond | Apply Now |
| Professional Licenses (All Other) Bond | State of Michigan | Deferred Presentment Service Provider Bond | Apply Now |
| Professional Licenses (All Other) Bond | Michigan Dept of Licensing and Regulatory Affairs | Alarm Business Bond | Apply Now |
| Professional Licenses (All Other) Bond | City of Lansing | Door to Door Sales Bond (City of Lansing, MI) | Apply Now |
| Schools (All) Bond | Michigan Department of State | Driver Education Provider | Apply Now |
| Schools (All) Bond | Mich Dept Energy, Labor, Economic Growth | Office of Postsecondary Services - Proprietary Sch | Apply Now |
| Schools (All) Bond | State of Michigan-Board of Cosmetology | School of Cosmetology | Apply Now |
| Schools (All) Bond | Michigan Department of State | Basic Driver Improvement Course Sponsor Bond | Apply Now |
| Alcohol (Manufacturers, Warehouses, Wholesalers) Bond | Michigan Liquor Control Commission | MLCC Non-Retail License | Apply Now |
| Alcohol (Retailers) Bond | MLCC - MICHIGAN LIQUOR CONTROL COMMISSION | Retailer or Applicant for Retail License Bond | Apply Now |
| Alcohol (Retailers) Bond | MI Department of Licensing and Regulatory Affairs | Special License for Sale of Beer, Wine, and Spirit | Apply Now |
| Utility Deposit Bond | Consumers Energy | Bond Guaranteeing Payment of Utility Bills | Apply Now |
| Money Transmitter Bond | Office of Financial Services | Money Transmission Services Provider Bond | Apply Now |
How Much Does a Surety Bond Cost in Michigan?
The cost of a surety bond in Michigan typically ranges from 1% to 10% of the total bond amount. For example, a $25,000 auto dealer bond may cost as little as $250 annually, depending on the applicant’s credit score and other factors.
The main factors influencing the surety bond cost are:
- Bond Amount: Higher bond amounts result in higher premiums.
- Credit Score: Typically, applicants with good credit pay lower premiums (1%-3%).
- Bond Type: Certain bonds may have higher premiums due to associated risks.
- Business Financials: Strong financial health and industry experience can lead to reduced costs.
Can I Get Bonded With Bad Credit in Michigan?
Yes, individuals with bad credit can still obtain a surety bond in Michigan. Bryant Surety Bonds offers a bad credit bond program with rates ranging from 3%-10% of the bond amount, ensuring that all applicants can meet their bonding requirements.
You can get a free bond quote in minutes by completing our online application form.
To get a quick ballpark estimate for your bond based on your credit score, you can use our surety bond cost calculator below.
Surety Bond Cost Calculator
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Get a free exact quote Get another estimateHow to Get a Surety Bond in Michigan
Obtaining a surety bond in Michigan involves the following steps:
- Determine the Bond Type: Identify the specific bond required for your profession or business.
- Apply Online: Complete our online application with your personal and business information.
- Receive a Quote: Get a customized quote based on your application details.
- Make Payment: Pay the premium securely online.
- Receive Your Bond: Obtain your bond electronically or via mail within 24 hours.
Agency License in Michigan
Bryant Surety Bonds is fully licensed to issue surety bonds in Michigan.
Agency License Number in Michigan: 0122177
For further assistance or inquiries, please contact us at 866.450.3412.
