Minnesota — Collection Agency (Corporation Or LLC) Bond
For a Minnesota collection agency applying as a corporation or LLC, this bond secures the collection business's obligations to the state and people it harms. The required amount starts at $50,000 and can reach $100,000, based on the previous year's Minnesota collections after commissions.
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- Recorded state
- Minnesota
- Bond type
- Collection Agency Bond
- Category
- Financial services
What this bond does
The agency and surety are jointly and severally bound to the Department of Commerce. Their obligation secures the agency's compliance with the collection statutes and its other legal obligations as a collection agency. The Commissioner and an injured person have a right of action on the bond for the injured party's loss.
- Who needs it
- Owners and compliance officers of collection agencies organized as corporations or LLCs that need to meet Minnesota Department of Commerce licensing requirements. Use the bond form for your actual legal entity.
- Who it protects
- The bond benefits Minnesota and people damaged by the agency's failure to comply with Minnesota Statutes 332.31 to 332.45 or other legal obligations arising from its collection business. The surety's aggregate liability cannot exceed the bond's penalty, regardless of the number of claims or years in force. Before paying a claim, the surety must notify the Commissioner of Commerce through the address specified on the form.
Your bond option
This is the option on record for this bond.
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The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.
Sources
- Minnesota Collection Agency (Corporation/LLC) Surety Bond Form (opens in a new tab)Checked October 18, 2026
- Minnesota Statutes section 332.34 (opens in a new tab)Checked October 27, 2026
Have these ready
- Review your collection agency's financial records from the previous calendar year to calculate the total amount received from Minnesota debtors and the total commissions earned.
- Use the state-provided surety bond worksheet to determine your exact required bond amount between $50,000 and $100,000.
- Ensure your agency is prepared to provide the official legal name and state of incorporation as required by the state bond form.
- Coordinate with your surety to obtain the necessary notarized signatures and Power of Attorney documentation prior to filing.
Questions about this bond
What is the minimum bond amount required?
The bond amount is at least $50,000, plus an additional $5,000 for each $100,000 received from Minnesota debtors during the previous calendar year, less commissions earned, up to a maximum of $100,000.
Who can make a claim against this bond?
The Commissioner of Commerce and a person damaged by violations of Minnesota Statutes 332.31 to 332.45, or other legal obligations arising from the agency's collection business, have a right of action on the bond for the injured party's loss.
Does the bond expire?
It is a continuing bond, not a new limit for each year. The form provides for cancellation; the surety's cancellation takes effect 30 days after its written notice is sent to the Department of Commerce. Liability incurred before cancellation remains.
Where should the bond be filed?
The completed bond form, including all required signatures and the Power of Attorney, must be filed with the Minnesota Department of Commerce.