Benefits of Being a Licensed and Bonded Business
When you own a business, it is for the purpose of providing services to consumers or other businesses. Depending on the type of service that is provided, your state may require your business to be licensed, bonded, or both. Although these requirements may cost a fee, it is a great way to protect your business.
Having a business license simply means that your business has passed all the local or state requirements that are necessary in order to legally operate a business. The many benefits of having a license include:
- Assuring customers that your business is indeed legit, and that your company is qualified to provide a specific service
- Not having to pay a hefty fine for not being in accordance with the local or state laws
- Receiving tax benefits that is separate from personal taxes
- Investments from other companies
- Discount and wholesale price advantages
A business that has been bonded is also a great way to let customers know that the service that you provide is guaranteed to be up to their standards. This provides more benefits, including:
- Opportunities to contract with other businesses
- Retaining or gaining more customers since bonds obligate a service provided to be completed
- Top reputation due to customers being comfortable with doing business with you
- Beating competitors that are not bonded
- Additional business opportunities