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Last reviewed: Next review due: Reflects current Michigan surety bond requirements
✓ 2026 Requirements Verified
Michigan Surety Bonds

Michigan Surety Bonds— Two Agencies, One Place to Bond

Auto Dealer Bond Now $25,000

As of January 2023, Michigan's motor vehicle dealer bond increased from $10,000 to $25,000 (DIFS Bulletin 2023-06-INS). Many online sources still show the old amount. All new and renewing dealer licenses require the updated $25,000 bond filed with the Secretary of State under MCL 257.248.

Michigan splits bond authority between LARA and DIFS, has no statewide contractor bond, and uses a birthday-based notary commission unlike any other state. Whether you need a $10,000 notary bond, a municipal contractor bond for Detroit, or a $500K+ money transmitter bond, we handle every Michigan bond type through both agencies. Browse all bond categories on our surety bonds hub or use the auto dealer bond cost calculator to estimate your premium.

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LARA & DIFS Accepted
All 83 Counties

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Dealer, notary, contractor, and all bond types

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Official Michigan Requirements

"Each applicant for a vehicle dealer license shall file with the secretary of state a surety bond in the amount of $25,000... conditioned upon the faithful performance by the dealer of the obligations imposed by this act."
Michigan Legislature • MCL 257.248 (as amended Jan. 2023)
$25K
Dealer Bond (2023)
$10K
Notary Bond
No State
Contractor Bond
$1.5M
Max Transmitter Bond

Understanding Michigan's Two-Agency System

Michigan is unusual: two separate agencies regulate bonded professions. Knowing which agency controls your license determines where you file and what form you use. If you are new to surety bonds, our guide on what a surety bond is explains the fundamentals.

LARA -- Occupational & Professional

Department of Licensing and Regulatory Affairs

  • Security Alarm Contractor -- $25,000

    MCL 338.1067, filed with LARA

  • Security Guard Agency -- $25,000

    MCL 338.1059

  • Private Investigator -- $10,000

    MCL 338.822

  • Personnel Agency -- $10,000

    Employment agency licensing

  • Residential Builders -- No Bond

    LARA requires insurance, not a surety bond

DIFS -- Financial Services

Department of Insurance and Financial Services

  • Money Transmitter -- $500K-$1.5M

    $500K base + $10K/location, max $1.5M

  • Mortgage Broker -- $25K-$125K

    MCL 445.1658/493.56, varies by license type

  • Collection Agency -- $5K-$50K

    Scaled by collection volume

  • Debt Management -- Varies

    Based on trust account balances (DIFS FIS 0508)

  • Auto Dealer -- $25,000

    MCL 257.248, filed with SOS, increased Jan 2023

Michigan Has No Statewide Contractor Bond

Unlike California, Florida, or most other states, Michigan does not require a statewide contractor license bond. LARA regulates residential builders but requires liability insurance, not a surety bond. Contractor bonding in Michigan happens entirely at the city level.

Municipal Contractor Bond Requirements

Detroit (BSEED)
$5,000-$25,000 depending on trade and license class. Electrical, mechanical, and general builders bonded separately.
Grand Rapids
Bond amounts set by the City Building Inspection Department, vary by contractor classification.
Lansing
City-specific bonding through the Building Safety Office for licensed trades.
Other Municipalities
Ann Arbor, Flint, Kalamazoo, and dozens of other cities set independent bond requirements. We track them all.

Complete Michigan Bond Guide

Every bond type with verified amounts and statutes

Notary Bond

$10,000 -- MCL 55.291

Birthday-based commission lasting 6-7 years. Filed with the county clerk. Attorneys admitted to the Michigan Bar are exempt from the bond requirement.

  • No credit check
  • Instant approval
  • Starting at $30
Michigan Notary Bonds
UPDATED 2023

Auto Dealer Bond

$25,000 -- MCL 257.248

Increased from $10,000 to $25,000 effective January 2023. Annual bond with December 31 expiration. Filed with the Michigan Secretary of State.

  • All dealer types
  • Dec 31 annual renewal
  • Starting at $100
Michigan Dealer Bonds

Vehicle Title Bond

2x FMV -- MCL 257.217

Required when applying for a bonded title. Bond amount is twice the fair market value of the vehicle. Bond remains in effect for 3 years.

  • 3-year term
  • Based on vehicle value
  • Same-day issuance
Get Title Bond Quote

Mortgage Broker Bond

$25K-$125K

$25,000 for first mortgage brokers, $25,000 for second mortgage brokers, $125,000 for combined servicer licenses. Filed through NMLS with DIFS under MCL 445.1658/493.56.

  • NMLS filing
  • DIFS regulated
  • Multiple license tiers
Mortgage Broker Bonds

Public Works Bonds

MCL 129.201

Required on public construction projects over $50,000. Bid bonds at 5%, performance bonds 25-100%, and payment bonds at 100% of contract price.

Public Works Bonds

Court & Probate Bonds

EPIC

Probate bonds set at estate value plus one year of expected income under the Estates and Protected Individuals Code. Appeal bonds, fiduciary bonds, and conservator bonds for all Michigan circuit and probate courts.

All Court Bonds

Additional Michigan Bond Types

Money Transmitter$500K-$1.5M
Freight Broker (Federal)$75,000
Liquor License$50,000
Security Alarm Contractor$25,000
Security Guard Agency$25,000
Private Investigator$10,000
Personnel Agency$10,000
Collection Agency$5K-$50K
Debt ManagementVaries

Michigan's Birthday-Based Notary Commission

Most states issue notary commissions for a fixed term from the appointment date. Michigan does it differently: your commission expires on your birthday in the seventh year after appointment, resulting in a 6- to 7-year term depending on when during the year you apply.

Key Requirements

  • $10,000 bond filed with your county clerk under MCL 55.291
  • 6-7 year term expiring on your birthday
  • Attorney exemption -- Michigan Bar members skip the bond
  • No credit check required for notary bonds

Example Timeline

Commissioned:March 15, 2026
Your birthday:July 10
Commission expires:July 10, 2032

How to Get Your Michigan Surety Bond

1

Identify Your Regulator

Tell us your business type and location. We determine whether your bond is regulated by LARA, DIFS, the Secretary of State, a municipal building department, or a Michigan court -- and confirm the exact bond amount and form required.

2

Get Approved Same Day

Notary bonds are approved instantly with no credit check. Dealer bonds, contractor bonds, and financial services bonds are quoted within hours through Treasury-certified sureties authorized by the Michigan Department of Insurance.

3

Receive and File Your Bond

Download your bond formatted for the correct Michigan agency or municipality. We file directly with LARA, DIFS, the SOS, county clerks, and municipal building departments on your behalf.

Serving Every Michigan Municipality

Bonds accepted by every city building department, county clerk, and state agency

Detroit
Grand Rapids
Warren
Sterling Heights
Ann Arbor
Lansing
Flint
Dearborn
Livonia
Troy
Kalamazoo
Traverse City

Michigan Surety Bond Questions

LARA, DIFS, and municipal bonding answers

Why did the Michigan auto dealer bond increase to $25,000?
Effective January 2023, Michigan raised the motor vehicle dealer bond from $10,000 to $25,000 under DIFS Bulletin 2023-06-INS. The increase was driven by rising vehicle prices and a pattern of consumer complaints where the old $10,000 bond was insufficient to cover damages from title fraud, odometer rollbacks, and failure to deliver clear titles. All new and renewing dealer licenses must now carry the $25,000 bond filed with the Secretary of State under MCL 257.248. Existing dealers had until their next renewal date to update their bond amount.
Does Michigan require a statewide contractor license bond?
No. Michigan is one of the few states with no statewide contractor licensing or bonding requirement. LARA (Department of Licensing and Regulatory Affairs) regulates residential builders and requires them to carry insurance, not a surety bond. However, individual municipalities set their own rules. Detroit requires contractor bonds ranging from $5,000 to $25,000 depending on trade and license class through BSEED (Buildings, Safety Engineering, and Environmental Department). Grand Rapids, Lansing, Ann Arbor, and other cities each have separate requirements. Always check with the local building department before starting work.
How does Michigan's birthday-based notary commission work?
Michigan notary commissions are unique because they expire on the notary's birthday rather than a fixed date from the appointment. Under MCL 55.291, the commission runs for approximately 6 to 7 years, ending on your birthday in the seventh year after appointment. For example, if you are commissioned on March 15, 2026, and your birthday is July 10, your commission expires on July 10, 2032. Your $10,000 surety bond must remain in effect for the entire commission period. Attorneys admitted to the Michigan Bar are exempt from the bond requirement.
What is the difference between LARA and DIFS for Michigan bonds?
Michigan splits regulatory authority between two agencies. LARA (Department of Licensing and Regulatory Affairs) handles occupational and professional licenses including security alarm contractors ($25,000 bond), private investigators ($10,000 bond), security guard agencies ($25,000 bond), and personnel agencies ($10,000 bond). DIFS (Department of Insurance and Financial Services) handles financial services including auto dealer bonds ($25,000), mortgage broker bonds ($25,000-$125,000), money transmitter bonds ($500,000-$1,500,000), collection agency bonds ($5,000-$50,000), and debt management bonds. Knowing which agency regulates your license determines where you file your bond.
How much is the Michigan money transmitter bond?
Michigan requires a base surety bond of $500,000 for money transmitters, plus an additional $10,000 for each location, up to a maximum of $1,500,000. This bond is filed with DIFS and must be issued by a surety authorized to do business in Michigan. The bond amount reflects the significant consumer funds at risk in money transmission. Bond premiums for money transmitter bonds typically range from 1.5% to 5% of the bond amount depending on the applicant's financial strength and experience in the industry.
What bonds does Michigan require for public works projects?
Under MCL 129.201 (the Michigan Public Works Bond Act), contractors on public construction projects exceeding $50,000 must furnish both a performance bond and a payment bond. Bid bonds are typically 5% of the bid amount. Performance bonds range from 25% to 100% of the contract price depending on the contracting authority's requirements. Payment bonds are 100% of the contract price to protect subcontractors and suppliers. These requirements apply to state, county, and municipal projects.
Can I get a Michigan surety bond with bad credit?
Yes. Michigan notary bonds require no credit check and cost $30-$50 for the full commission term. For the $25,000 auto dealer bond, applicants with credit scores below 600 can still get approved through specialized surety programs, though premiums will be higher -- typically 5-12% of the bond amount rather than the 1-3% that strong-credit applicants pay. Vehicle title bonds, security contractor bonds, and smaller license bonds are also available to applicants with challenged credit.

Official Michigan Resources

Government sources for Michigan bond requirements

MCL 257.248 -- Motor Vehicle Dealer Bond

Statute requiring $25,000 dealer bond (as amended January 2023)

MCL 55.291 -- Notary Public Bond

$10,000 bond requirement for Michigan notary commissions

LARA -- Licensing and Regulatory Affairs

Occupational and professional license bond requirements

DIFS -- Insurance and Financial Services

Financial services licensing, money transmitter and mortgage broker bonds

MCL 129.201 -- Public Works Bond Act

Performance and payment bond requirements for public construction over $50,000

U.S. Treasury Surety Bond List

Federal listing of Treasury-certified surety companies authorized to write bonds for U.S. government contracts

Nick Thoroughman, Editorial Director
Reviewed by Nick Thoroughman, Editorial Director
Eric Drummond, Surety Specialist
Surety review by Eric Drummond, Surety Specialist
Nevada DOI license pending issuance

All content is researched from official state and federal sources (.gov) and verified before publication. BuySuretyBonds.com works with Treasury-certified, A- minimum rated surety carriers serving all 50 states.

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Other Michigan Bonds

Additional surety bonds available in Michigan

Michigan Notary Bond

Notary public bond

Michigan Contractor License Bond

Contractor licensing

Michigan Auto Dealer Bond

DMV dealer licensing

Michigan Performance Bond

Construction & service contracts

Nearby States

Surety bonds in neighboring states

Ohio Surety Bond

Ohio requirements, statute, and bond amount

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