Should You Invest In A Bail Bonds Business?
The bail bond business is not for everyone. It requires a significant cash investment and also the ability to adhere to very strict regulations. You cannot provide your services independently, and you can only work with one bondsman at a time or face criminal charges.
In return, though, you get access to a lucrative industry that has been growing consistently over the years. To find out if this industry is right for you, keep reading!
Bail Bonds Business Investment Costs
In most states, the capital required to start a bail bonding business begins at around $10,000. The requirements may vary from state to state, but most require some combination of:
Cash Deposit: This money must be available in your account when applying for your bail bond license.
Business Entity Registration – You must register your company with the Secretary Of State or a similar office to start doing business.
Fee Deposit: The amount varies, but there’s usually a hefty fee associated with starting up, anywhere from $500 to $2,500. This deposit is only refundable when you close your account or if you fail to get your license after six months.
Insurance Deposit: Most states require an insurance deposit of around $10,000, while others may require more depending on the type of services you provide (i.e., carry guns).
This serves as proof that you can cover any losses your business might suffer, and that should be replenished within thirty days of your business being closed. On top of these fees, you should also expect to follow the rules and laws specific to your state.
Failure to do so can result in criminal charges for both you and your bondsman license, so make sure you understand your legal requirements before establishing yourself as a bail bond company.
Are You An Entrepreneur?
First, ask yourself how much risk you’re willing to take with your money. Bail bondsmen work on commission only (typically 10% of the total bond amount) which means they don’t get paid unless the defendant appears at their hearings.
The greater the risks involved with each case, the higher they must charge their fees. To make up for this risky investment, many bail bond agents like bail bonds in Jefferson County Mo work more than one case at a time.
Before you can begin working on your own, several requirements must be met to get your bail bond license. First is an application fee paid directly to the state.
It typically costs around $100 but might vary from state to state, and most states require both a written and oral exam which you must score 80% or higher to pass.
You also have to be at least 18 years old, a U.S citizen or permanent resident, with no criminal record beyond minor traffic violations and have proven residency within the state where you’re applying for licensure.
In addition, every person who will serve as an officer/employee/agent of your business must be approved by the state as well.
They will do a full background check of every person on your staff to ensure they haven’t had any run-ins with the law (other than minor traffic violations) that might jeopardize their ability to work in this industry.
To everyone’s benefit, there are usually minimal educational or experience requirements for bail bond agents. Most states require less than one year of experience before you can take the exam.
The Numbers Don’t Lie.
Facts don’t lie, so here’s some hard data regarding the bail bond industry:
Over 15,000 licensed bail bonding agencies in the United States like bail bonds in Jefferson County Mo, generated an estimated $2 billion in revenue during certain years.
It is the most significant revenue-generating private business in the criminal justice industry. It has over 90% of the market share, meaning it’s an excellent investment for anyone interested in working with people while earning a solid income.
The average bail bond agent earns between $50k and $75k per year, more than most other industries. Successful agents usually see their incomes double within five years, thanks to steady growth.
Now that you understand what’s required both financially and legally, your next step should be getting your license so you can get out there and start generating some high income!