License vs. Permit Bonds: What’s the Difference?

License and permit bonds may sound interchangeable, but they serve slightly different purposes. License bonds are required by states or municipalities as a condition of obtaining a business license, ensuring you operate ethically and in compliance with laws. Permit bonds, on the other hand, are specific to certain activities—like construction, excavation, or selling alcohol—and guarantee you’ll follow regulations tied to those permits.
Understanding the difference ensures you’re applying for the right bond at the right time. Not sure which one you need? Don’t sweat it—Bond Babes USA will walk you through it.