The following is a guest contributed post from Vic Lance, the founder and president of Lance Surety Bond Associates. He is a surety bond expert who helps business owners get licensed and bonded.
If you are planning to start a telemarketing business in California, it’s a good idea to get well acquainted with the administrative procedures that you need to undergo.
The first and foremost is to obtain a California telemarketing license. Most states have similar rules for companies that want to sell over the phone to their citizens.
Telemarketers in the state need to get registered with the California Attorney’s General Office. The process involves a number of steps that need to be satisfied, so that you are allowed to operate legally. One of the major ones is to obtain a telemarketing surety bond. All requirements are set forth in the California telemarketing rules.
Let’s look at the most important criteria that you need to satisfy, so that you launch your telemarketing business.
#1. Get to know the California telemarketing law
Before you delve into the licensing process, it’s essential to know what rules govern the trade you are about to enter.
The California telemarketing curfew is from 8 a.m. to 9 p.m, which follows the Federal Rule. There is no state-specific Do-Not-Call (DNC) list, but telemarketers have to respect the national DNC list.
Additionally, there are a number of mandatory disclosures, prohibited statements and cancellation rights that you need to comply with.
It’s important to keep in mind that even if your business location is not in California, you would still need a license in the state in order to contact residents there.
Not complying with state rules can lead to serious fines. Currently, the fine is $11,000 per violation.
#2. Complete your California telemarketing license application
The first step of obtaining the right to conduct telemarketing in California is to obtain a Telephonic Seller Registration Number from the Attorney’s General Office.
You need to complete the license application form and mail it to the address indicated on it. Make sure you pay special attention to all the data required, as incomplete applications can slow down your licensing process.
The most important information that needs to be included in the application includes:
- Business entity – corporation, partnership or other
- Description of products sold
- Certificate of filing for the business locations
- Telephone numbers to be used for telemarketing
- Detailed personal data about owners and managers
- Records of financial problems i.e. liens, judgments
- Telemarketing bond in the appropriate amount
For many of these points, you would need to provide additional paperwork, which should be attached to the application form.
#3. Obtain your telemarketing bond
One of the major requirements for getting your California telemarketing license is to post a $100,000 surety bond.
The telemarketing bond works as a protection for the state and your clients. It guarantees that you will comply with all applicable laws. Claims can be made on the bond in case you transgress from the statutes set forth in the bond language.
While the bond amount is considerable, your bond cost is only a percentage of that amount. When you apply for a telemarketing bond, your surety provider examines your overall finances. The crucial factors include your personal credit score, assets and liquidity and business financials. Your professional experience can also be considered.
On the basis of these indicators, it assesses the risk of bonding you. The bond cost is lower if your financial stats are solid.
Starting your California telemarketing company doesn’t need to be complicated. Following these steps, you will be on your business path as quickly as possible.
Have more questions about the licensing and bonding process? Please share your them in comments below!
