What is the purpose of a California Dance Studio Bond?
As written in Title 2.4 of the Civil Code, every dance studio shall maintain a bond before they can do business in the State. This surety bond is intended to protect dance studio clients from any malpractice and deceit by the dance studio. It guarantees that the dance studio will follow all laws, rules, and regulations set forth by the state. This bond protects clients from any poor financial decisions or violations of the law by the dance studio. The California Dance Studio Bond is required by the Secretary of State to be in the amount of either $25,000 or 25% of the dance studio’s gross income from its business during the studio’s last fiscal year, whichever is greater. A $30.00 filing fee is also required by the Secretary of State.
There are exemptions that will exclude some dance studios.
- Studios that receive less than $50 in advance payments from or on behalf of each student in which the advance payments are not received by the studio more frequently than once every 30 days.
- Studios that only offer instruction in ballet, modern, jazz, tap dance, or any combination thereof, to persons under 21 years of age if the contract between the studio and the student follow certain parameters outlined in California Civil Code Title 2.4, Section 1812.67.
- Those that qualify for a tax exemption under Section 501(c)(3) of the Internal Revenue Code and receive a direct grand of funds from the California Arts Council.
How do I obtain a California Dance Studio Bond?
Complete our easy to navigate online application. Within one business day, one of our licensed agents will contact you with a no-obligation quote for your bond (the “premium”). Once any necessary paperwork is signed and the premium payment is processed, your surety bond will be shipped to you via USPS Priority Mail (overnight shipping options also available).
The surety bond experts at Surety Solutions Insurance Services, Inc. (Surety1) are here to help you get bonded quickly and reliably. We work with over a dozen “A” rated surety markets to ensure we find you the lowest rate for your bond. We are also licensed in all 50 states and maintain an A+ rating by the Better Business Bureau.