Nevada Document Preparer bonds are required by anyone in the state of Nevada that is offering Document Preparation Services. These bonds help to ensure that the public has some protection against negligent and malicious actions by someone that provides Document Preparation Services. The required bond limit is $50,000.
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Document Preparation Services
In Las Vegas, and other places in Nevada, there are many small businesses that also offer to help their clients prepare legal documents. The types of legal documents that they help prepare may include, but are not limited to:
- Immigration forms
- Divorce & Custody forms
- DMV vehicle registration and title forms
A Document Preparation professional is someone that has sufficient knowledge to assist another person in the completion of these types of forms. They are not attorneys or legal experts but some times they may have experience working as a paralegal. A Nevada Document Preparer Bond is required by anyone that offers these services to the public.
Seeking out the services of a Document Preparation professional is almost always a less expensive option. If the documents that need to be prepared are not too complex in nature then this is often a good option for most people. Some people may even choose to prepare their own documents in these cases.
Nevada Document Preparer Bonds
The State of Nevada governs the registration and conduct of people that provide document preparation services. Since this is a service where someone in the public may suffer harm from the negligence of the document preparer, it is important that not just anybody is able to offer these services. It also helps to ensure that malicious document preparers do not take advantage of unsuspecting people.
From the Nevada Secretary of State website, we learn more about Document Preparation Services.
A document preparation service is a person who, for compensation and under the direction of a client, provides assistance in certain legal matters and is required to be registered with the Nevada Secretary of State. The law provides consumers protections and remedies for violations of conduct by a document preparation service.
The definition also includes, without limitation,:
- Preparing or completing any pleading, application or other document for the client,
- Translating an answer to a question posed in such a document,
- Securing any supporting document, such as a birth certificate, required in connection with the legal matter,
- Submitting a completed document on behalf of the client to a court or administrative agency, or
- Preparing or assisting in the preparation of all or substantially all of a federal or state tax return or claim for a tax refund
- A paralegal who performs one or more of the actions described unless the paralegal works under the direction and supervision of an attorney authorized to practice law in this State,
- A bankruptcy petition preparer as defined by section 110 of the United States Bankruptcy Code, 11 U.S.C. § 110, or
- Holds himself or herself out as a person who provides such services.
A person acting as a document preparation service cannot provide legal advice unless he or she is a licensed attorney in the State of Nevada.
How does a Nevada Document Preparer Bond work?
A Bond is different than an insurance policy, mainly in the fact that there are 3 parties involved with a bond.
- The Principal – This is the person or organization that takes out the bond
- The Surety – This is the company that provides the financial guarantee
- The Obligee – This is the party that receives the benefit if a claim is made against the bond
If someone offering document preparation services negligently causes harm to another individual then a claim may be made against the bond. The bond is held on file with the Nevada Secretary of State. This is why it is extremely important that people seeking document preparation services verify that the person is in fact licensed by the State of Nevada. Someone that is not licensed may not have the experience and definitely does not have bond on file with the state.
Someone that has suffered due to the negligence of their document preparer may have recourse by making a claim on their bond. They should contact the Nevada Secretary of State Document Preparation Services Division for directions on making a claim against a Document Preparer Bond in Nevada.
How do I obtain a Nevada Document Preparer Bond?
Securing a Nevada Document Preparer Bond is the same process as other kinds of bonds.
- Complete an application with a license surety bond agent
- Your agent will obtain bond rates from their surety underwriters
- You may have the option to secure a 1, 2, or 3 year bond (we recommend taking the longest term offered)
- Pay the premium (surety bond premiums are typically paid in full)
- Take the original bond, signed & sealed by the surety, to the State
Bonds are also continuous which means that as long as the premium is paid the original bond remains active. This is different than an insurance policy where you receive a renewal policy each year.
The surety can cancel the bond at renewal if they no longer want to write these types of bonds or if the principal’s credit profile is no longer acceptable to the surety company. The bond will also cancel if the premium is not paid.