The Secretary of State requires a Document Preparation Service Bond to be obtained by any registered person or business entity that performs document preparation services for compensation within the State of Nevada.
Jet Insurance Company provides the Document Preparation Service Bond as an assurance that the document preparer or business entity will abide by all registration statutes instituted by the Nevada Secretary of State (SOS) for the protection of clients. The surety bond acts as a guarantee of restitution for financially damaged clients in cases where violations such as negligence, unethical conduct, and fraud are committed.
The lowest rate for the Document Preparer Bond is $188 a year or $19 a month, but the cost is dependent on the bond limit and the personal credit of the registrant. Take a look at the chart below for additional examples of custom surety bond limits and Jet’s monthly or annual rates at the preferred credit tier.
Our monthly payment plan is a great option to keep your bond active with no need to worry about renewing, especially with the bond’s larger limits.
The Nevada Secretary of State has set tiers of custom limits for the Document Preparation Services Bond; these tiers are solely based on whether you act as an individual document preparer or if you are a business entity with multiple registrants on your staff. The greatest number of registrants employed within your business will be the deciding factor on what tier you qualify for regarding your custom bond limit. You can find what custom bond limits are required of individual registrants and business entities listed below:
The number of registrants employed within your business throughout the year applies to temporary and seasonal workers as well. The Secretary of State will also ask that you maintain an updated list of all individuals actively employed under your business with their office. If a reported registrant is no longer employed with your company, the SOS needs to be notified.
The Document Preparation Service Bond is required by the Nevada Secretary of State for the purpose of holding all document preparers, document service businesses, and their registrants accountable for their actions in cases where rules and regulations are violated. The bond is ultimately required to ensure that the document preparer will conduct all services in an ethical, professional, and up-to-code manner. If a client is fiscally damaged due to an unethical transgression and the licensee is unable to or refuses to provide the claimant with proper restitution, the surety bond will act as a financial guarantee for losses incurred.
It is important to note that licensed document preparers who only practice with the Internal Revenue Service (IRS) are exempt from this surety bond requirement. Further information detailing the criteria for licensing and the Document Preparation Service Bond can be found on the “Qualifications” webpage.
Jet has created an efficient application process that can be completed fully online. Our application asks for general information such as your contact details, the bond limit required, and your social security number for a soft credit check. Once you have submitted everything, a Jet underwriter will complete a review of your application. If further information is needed, we’ll give you a call right away. Otherwise, you will receive approved rate options via email that are ready for immediate purchase. Just choose your preferred option, fulfill payment, and receive a copy of your bond form and receipt instantly.
Yes, Jet can file your surety bond for you free of charge! However, if you would rather take care of this step yourself, this option may be selected at checkout.
The original signed and sealed Document Preparation Service Bond must be filed with the Nevada Secretary of State, specifically the Document Preparation Services office. The surety bond and any other required documents should be sent to the mailing address below.
Nevada Secretary of State
Document Preparation Services
2250 Las Vegas Blvd., Suite 400
Las Vegas, NV 89030
If you are a first-time registration applicant, there are further details and instructions on how to apply on the “Application Process” webpage.
You can send a written cancellation request to us at [email protected] at any time! Once received, we will notify the Nevada Secretary of State of your Document Preparation Service Bond’s termination. The SOS will release the liability of your bond within 30 days of receiving our notice.
Your bond is technically still active during the cancellation period. Those on monthly payment plans will be charged for that month and payments will then automatically stop. If you paid for the bond in full and are cancelling early, Jet will analyze the bond’s remaining time for any unused premium and return it to you once cancellation is final.
Jet’s monthly plan participants won’t have to worry about renewing! Your Document Preparation Service Bond will remain active with the Nevada Secretary of State as long as payments are completed and until cancellation is sought.
If you purchased your bond with Jet in full and upfront, we will send you a renewal invoice far in advance of your bond term expiration date via email and the mailing address of your choice. No renewal fees will be asked of you, all we need from you is the standard payment. Once this step has been completed, we’ll take care of sending a continuation certificate for your bond to the Nevada Secretary of State.
Sole document preparers, document preparation service businesses, and registrants are expected to follow all rules and regulations pursuant to Chapter 240A of the Nevada Revised Statutes as it pertains to the obligations and legalities for their certificate of registration with the Secretary of State. A violation of the statutes may lead to penalties such as the suspension or permanent revocation of your registration, civil action, and/or a bond claim.
Although claims on the Document Preparation Service Bond are uncommon, they can occur due to negligence, unethical conduct, dishonest behavior, or acts of fraud. An example scenario is charging a client fees/costs for services not performed or promising a certain result after the submission of a document that is not actually feasible.
If a past or present client of the document preparer feels that a license violation has been committed, they must first report the licensee to the Secretary of State (claims may only be made within three years of the alleged incident’s date). Once this step has been completed, the damaged party may take civil action against the registrant. In cases where a Nevada State court rules in favor of the claimant, the Document Preparation Service Bond may be used to cover losses faced, as well as the cost of attorney fees.
Contact Jet as soon as possible if you receive a Nevada court-ordered claim notice. We also ask that you gather all available documents and information for us as the Jet team will utilize these details for our own investigation of the civil action that resulted in a claim.
If the claim is ultimately justified, Jet is legally obligated per the Document Preparation Service Bond to make payment up to the custom limit?payouts will never exceed the bond amount. You, the registered document preparer or business owner, are fully responsible for your own actions and the actions of your registrants. Therefore, you must reimburse Jet for the claim payout made on your behalf. Failing or neglecting to fulfill this obligation will lead to future difficulties acquiring the Document Preparation Service Bond which is required for your certificate of registration as a document preparer in the State of Nevada.