Surety Bond Encyclopedia

Electrical Contractor ($5,000) Bond - City of Dothan, AL in Alabama

Brief Summary

Your Alabama Electrical Contractors Board license lets you work anywhere in the state, but Dothan will not issue your city business license until a $5,000 surety bond is on file. Pay a small annual premium, get the executed bond, and send it back to Business Services so the license can be issued.

The City of Dothan requires a $5,000 surety bond from electrical contractors before it issues a city business license. The requirement sits in the license schedule of the city business license ordinance under NAICS code 23821, alongside a $150 license fee and proof of state certification. The bond runs to the City of Dothan and is filed with the Business Services office.

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How to Apply for a Electrical Contractor ($5,000) Bond:

Hold a current license from the Alabama Electrical Contractors Board.
Register your LLC or corporation with the Alabama Secretary of State before applying to the city.
Submit the City of Dothan business license application with a copy of your state electrical license.
Watch for the city email with the bond form and filing instructions.
Apply for the $5,000 bond, pay the premium and have it executed on the city form.
Return the executed bond to Business Services and pay the $150 electrical contractor license fee.
Renew the city license by January 31 each year and keep the bond active.

Detailed Information About the Alabama Electrical Contractor ($5,000) Bond:

Who has to post this bond

Any electrical contracting business working inside Dothan city limits needs a city business license, and the license schedule for electrical contractors (NAICS 23821) lists three items: a $150 license fee, state certification, and a $5,000 surety bond. The amount is a single flat figure. The schedule does not tier it by job size or revenue.

Your state license does not replace the city bond

Alabama Code 34-36-13 allows a contractor holding a statewide license from the Alabama Electrical Contractors Board to perform electrical work in any county or municipality, provided the contractor also holds the proper local building permit and business license. The state license settles the question of competency. It does not waive the Dothan business license or the bond that goes with it.

How filing works

When you submit the city business license application and select electrical contractor, the city asks for a copy of your Alabama Electrical Contractors Board license and emails you the bond form with instructions. Have the bond executed on that form with the City of Dothan as obligee, using the business name exactly as it appears on your application.

Term and renewal

Dothan business licenses run on the calendar year and expire December 31. Renewals are due by January 31. A 15% penalty applies in February, and from March 1 the penalty rises to 30% plus interest. Keep the bond in force for as long as the license is active.

What the bond costs

You pay an annual premium, not the $5,000 face amount. The surety sets the premium after reviewing the owner's personal credit and business history. Confirm the current bond form and any filing steps with the City of Dothan Business Services office before the bond is issued.

Eligibility and Requirements for a Alabama Electrical Contractor ($5,000) Bond:

Bond amount of $5,000, a flat figure for all electrical contractors.
City of Dothan named as obligee on the city supplied bond form.
Principal name matching the business license application exactly.
Valid Alabama Electrical Contractors Board license.
Owner credit review, which shapes the premium rate.

Alabama Electrical Contractor ($5,000) Bond FAQs:

I already hold a statewide electrical contractor license. Do I still need the Dothan bond?

Yes. State law lets licensed electrical contractors work in any Alabama city, but only with that city's building permit and business license. In Dothan, the business license for electrical contractors carries the $5,000 bond.

Does the bond amount change with the size of my jobs?

No. The Dothan license schedule lists one figure, $5,000, for electrical contractors.

Where do I get the bond form?

The city emails it to you after you submit a business license application for an electrical contracting business. Use that form so the filing is accepted.

When does the license and bond need to be renewed?

City business licenses expire December 31 and are due for renewal by January 31. Penalties start in February. Keep the bond continuously in force while you hold the license.

What will the bond cost?

You pay a yearly premium set by the surety after a review of the owner's credit and business history. Apply to get an exact quote.