Texas Surety Bonds

Surety bonds are required in Texas for businesses and individuals to ensure compliance with state laws, protect consumers and the state, and guarantee contractual obligations.

Whether you're a contractor, auto dealer, or business professional, who has a business registered in the state of Texas, obtaining the right surety bond is essential. This guide walks you through everything you need to know, including the most popular types of surety bonds, their costs, and how to apply for one.

Most Popular Bonds in Texas

Here are some of the most common Texas surety bonds, along with brief descriptions of who needs them and their purpose:

• Auto Dealer Bonds are required for new and used car dealers in Texas to obtain their dealer license. They ensure compliance with state laws.
• Contractor License Bonds guarantee a contractor’s compliance with local laws, regulations, and licensing requirements.
• Freight Broker Bonds - freight brokers need them to meet the FMCSA's financial responsibility requirements.
• Mortgage Broker Bonds are required for mortgage lenders and brokers to ensure they operate according to Texas laws.
• Texas Title Bonds guarantee protection and compensation when replacing a lost vehicle title, safeguarding the DMV and future vehicle owners.
• Alcohol Bonds - alcohol retailers, manufacturers, and wholesalers must secure this bond to operate legally.

You can search for the bond you need in the table below or complete our online application and our agents will help you apply for the correct surety bond in Texas.

Texas Surety Bond Requirements

In Texas, professionals in many industries are legally required to obtain a surety bond in order to obtain a license or permit in the state, work on a specific project, or when required by courts. The Texas Administrative Code and local laws mandate these bonds to protect consumers and guarantee compliance with state regulations. Below are the most common types of surety bonds required in the state of Texas:

Failure to maintain these bonds can result in license suspension, fines, or legal consequences.

Some cities in Texas have additional local bonding requirements. Here’s a quick overview:

• Houston: Requires a $50,000 auto dealer bond for new and used car dealers as part of the licensing process.
• Dallas: Contractors must post a paving bond to work on public streets and sidewalks.
• Austin: Contractors may need a contractor license bond to secure permits for various construction projects.
• San Antonio: Certain industries, like health spas, require a bond to guarantee compliance with city regulations.
• El Paso: Contractors may need a blanket building bond to cover multiple construction projects within the city.
• Fort Worth: Some professionals, like solicitors, must obtain a vendor bond to operate legally in public spaces.

How Much Is a Surety Bond in Texas?

The surety bond cost in Texas typically falls between 0.5% and 10% of the total bond amount. The final price depends on several factors, including:

• Bond amount: The cost you will pay for the bond will be a percentage of the bond’s total amount.
• Credit score: Applicants with good credit can expect to pay between 0.5%-3% of the bond amount. For example, a $50,000 surety bond may cost between $250 and $1,500 annually.
• Bond type: The specific type of bond required can influence the premium amount. For instance, certain businesses, like freight brokers, are considered higher risk due to the financial liabilities associated with their operations, which can result in higher bond premiums. In contrast, lower-risk industries may benefit from more affordable bond rates.
• Industry experience: Extensive experience in the industry may result in lower bond costs due to reduced perceived risk.
• Business financials: A strong business history can lead to lower premiums.

Can I Get Bonded With Bad Credit in Texas?

Even with bad credit, you can still get bonded in Texas. While high-risk applicants (those with no credit, low credit, or tax liens, civil judgments, etc.) may face higher premiums, Bryant Surety Bonds offers a special bad credit bond program, with rates ranging from 5%-15% of the bond amount.

This program provides bonding options for individuals with financial challenges, allowing those with lower credit scores to meet their bonding requirements. Over time, as applicants improve their credit score and financial standing, they can reapply and qualify for lower premiums.

You can get a ballpark estimate of your surety bond cost by using our calculator below.

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Surety Bond Cost Calculator

Bond Type Select Your Required Bond Auto Dealer BondCollection Agency BondContractor License BondDebt Collector BondFreight Broker BondMedicare/Medicaid BondMortgage Broker BondRetail & Professional Services BondSchool BondSmall Loan Company BondSports Permit BondTax & Utility BondTelemarketing BondTravel Agent BondAll Other License Bonds

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To get a firm quote, you need to apply online. It’s free and there is no obligation to purchase the bond.

Get Your Texas Surety Bond in 4 Easy Steps

1. Apply Online – Fill out our quick online form with your business details.
2. Get a FREE Quote – Receive your bond quote within minutes. Some bonds offer instant approval!
3. Pay – Securely pay your premium online.
4. Receive Your Bond – We’ll send your bond and our agents can also help you file it with the respective obligee.

Not sure about the specific bond requirements for your business in Texas? No problem—our agents are here to help you meet your specific requirements in any state in the US. Contact us today at 866.450.3412!

Agency License in Texas

Bryant Surety Bonds holds a legal license to issue surety bonds in Texas.

Agency License # 2431403

About us:

Bryant Surety Bonds

Bryant Surety Bonds, Inc. is a surety bond agency based in Pennsylvania. Licensed in all 50 states and with access to over 20 T-listed, A-Rated bonding companies, we have the contacts, expertise, and top service to provide you with a hassle-free experience, all while offering competitive rates for your surety bond.