Michigan broker-dealer bonds.
$100 flat.
A Michigan broker-dealer whose registration carries a bond condition files a $10,000 surety bond with the securities administrator at LARA’s Corporations, Securities & Commercial Licensing Bureau — ours is $100 flat, and the price you see is the checkout price. The application includes a credit consent, but it authorizes a soft credit pull only.
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How much does a Michigan broker-dealer bond cost?
$100 at the $10,000 amount, the same for every applicant.
Three steps. One sitting.
A fixed-amount, fixed-price bond is about the simplest thing in surety. Here is the entire process:
Apply online
Firm details, years in business, and an effective date, plus the credit consent that authorizes a soft pull. No financial statements, no FOCUS report to attach here.
Pay & e-sign
Bonds like this are among the thousands of bond types that issue right after purchase. The soft inquiry never affects your score, and no hard inquiry ever runs on this bond.
File with the administrator
Your executed bond and power of attorney arrive by email, ready to file with LARA CSCL alongside the registration or renewal it belongs to. Wet-ink original mailed on request.
What it is and who needs it.
What the broker-dealer bond actually covers
Michigan registers broker-dealers under the Michigan Uniform Securities Act (2002), 2008 PA 551, administered by the securities administrator inside LARA’s Corporations, Securities & Commercial Licensing Bureau. MCL 451.2411(5) is the bonding hook: a rule or order may require a broker-dealer that has custody of or discretionary authority over customer funds or securities to obtain insurance or post a bond, in an amount the administrator sets, and the bond must permit an action to enforce liability on it within the limitation period in section 509(10)(b).
The same subsection carves out the well-capitalized: neither insurance nor a bond may be demanded of a registered broker-dealer whose net capital exceeds the amount fixed by rule or order. That threshold is why the bond has always been a small-firm instrument in Michigan. The rescinded rule that named the number, R 451.602.7, applied it to a broker-dealer whose net capital did not exceed $50,000 and set the bond at $10,000, restorable to $10,000 if a recovery reduced it — which is where the $10,000 figure on this form comes from.
The protected parties are broader than the statute’s own causes of action. The historical bond ran for the use and benefit of anyone with a Michigan cause of action arising from embezzlement, defalcation, or misappropriation of securities or funds by the principal, its agents, or its employees. It is not insurance for you — if the surety pays a claim, you repay the surety. Michigan broker-dealer registrations run on the calendar year and renew through the CRD cycle, so the bond has to stay continuous across December 31.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the $10,000 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose; a longer term is the same price per year, chosen at checkout.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with the administrator. Your executed bond and power of attorney arrive by email, ready to file with LARA CSCL alongside the registration or renewal it belongs to. Wet-ink original mailed on request.
What sets the price
The premium is fixed at $100 at the $10,000 amount for every applicant: the carrier’s rate book prices this bond by the form, not by your credit or your business profile.
One soft credit pull, never a hard inquiry, and it never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued instantly.
These are the actual issuing fields. The credit consent in the form authorizes a soft pull only — a soft inquiry that never affects your score.
Start the application →Common questions.
Other Michigan bonds.
Been told you need a different amount?
Price and requirements checked on the carrier’s application, . Page updated .
Clear the bond condition on your registration today.
$100 flat, soft pull only, bond often issued in the same sitting and e-signed for filing with LARA. Free until issued.