Any nonresident person or firm (contractor or subcontractor) doing business in Delaware so as to be subject to Delaware income tax, occupational/business licenses, or unemployment compensation laws. Required when: Before construction is begun in the State on any contract the price of which is $20,000 or more, or when …
Overview
What it is.
Any nonresident person or firm (contractor or subcontractor) doing business in Delaware so as to be subject to Delaware income tax, occupational/business licenses, or unemployment compensation laws. Required when: Before construction is begun in the State on any contract the price of which is $20,000 or more, or when …
Who usually needs it
Any nonresident person or firm (contractor or subcontractor) doing business in Delaware so as to be subject to Delaware income tax, occupational/business licenses, or unemployment compensation laws.
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateDEBond amount6% of the contract or subcontract price on all contracts of $20,000 or more, or…Term lengthContinuousObligeeDelaware Division of RevenueRenewalThe bond remains in force until the liability thereunder is released by the Secretary of Finance or their designated departmental representative.Bond classLicense BondCategoryConstructionBondNon-Resident Contractor BondStatutory reference30 Del. C. § 375JurisdictionState
