Texas Surety Bonds

City Requirements

We have dedicated pages for several cities in Texas. Navigate to yours if you want to find out more about its specific requirements.

Overview of Texas Surety Bonds

Surety bonds can be required from a number of businesses or individuals looking to operate in Texas. Usually, they are needed as part of the process of obtaining a license or a permit.

What is the purpose of the surety bond?

Broadly put, surety bonds ensure that the bonded entity will comply with certain regulations imposed by the obligee (the state). Generally, bonds guarantee that the principal will comply with state laws, such as the Texas Administrative Code, that govern how business is conducted in the state.

The bond is backed by a bonding company which assumes financial and legal responsibility for the actions of the bondholder, also called a principal. Thus, the surety, the obligee and the principal sign a legally binding contract.

If the principal doesn’t adhere to the terms of this contract, they can become liable for sums up to the total amount of the bond. Surety bonds are a regulatory method not only in Texas but nationwide because they can provide quick compensation in case a third party suffers loss or damage.

Want to know more about bonds? See our ‘What is a surety bond’ guide to find out more about how bonds work.

See the sections below for more information on the different types of bonds in Texas, their cost, and how to get bonded.

Surety Bond Search

You can search for the bond you need in the table below. If the one you are looking for is not there, do not worry. Call us at 866.450.3412 and we will help you get bonded.

Texas Surety Bond Requirements

As mentioned in the beginning, surety bonds can be required from businesses and individuals alike. Depending on the purpose they serve, these bonds can fall into one of the following two main categories.

License and Permit Bonds

License bonds are the most frequently required types of bonds. A number of businesses need to obtain them when they apply to get or renew their business license.

For example, if you are an auto dealer in Houston you’ll need to post a $25,000 auto dealer bond in order to get licensed. Other popular types of bonds in the state are contractor license bonds and freight broker bonds.

Contract Bonds

Contract bonds, such as performance and payment bonds, are required on large public projects as well as on some private ones. Their purpose is to protect the project owner from negligence, contractor default, and other violations. Some contract bonds are also required to ensure subcontractors, laborers and suppliers are duly paid.

If you’ve never obtained a surety bond before, read on to find out more about surety bond rates and premiums.

How Much Does it Cost to Get Bonded in Texas?

The cost of getting bonded depends on the type of bond you are applying for. Each bond has a different total amount which refers to its penal sum. This is the maximum amount of compensation a surety may extend to claimants against the bond.

The total cost you will have to pay is a premium - a fraction of the total amount. The factors that influence the rate of that premium the most are:

• Your personal credit score
• Your personal and business financials
• Your industry experience
• How long your business has existed

These factors, and especially personal credit score determine the amount of your bond premium. If you have a high personal credit score, the rate of your Texas surety bond will range between 1%-4% of the full bond amount. This is called a standard market rate.

You can enter your bond type, bond amount and credit score in the calculator below to get an estimate of your bond premium.

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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

State Requiring the Bond Select Your StateAlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWashington D.C.West VirginiaWisconsinWyoming

Surety Bond Amount ($)

Select Your Credit Score Please select Above 700 650 - 699 600 - 649 550 - 599 549 and under

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Can I get bonded if I have a low credit score?

If you happen to have a low credit score, tax liens, civil judgments or other issues which may qualify you as a high-risk applicant, you will receive a slightly higher premium rate which ranges between 5%-15% of the total amount.

By improving your credit score and removing any liens and judgments from your record over time, you can improve your bond rate significantly, and come to qualify for standard market bond rates.

How Can I Get Bonded in Texas?

There are two different bond applications depending on the type of bond you are applying for.

License bond application

Applying for a surety bond is quite straightforward with our simple 1-page online application. Once you complete the application, you will be contacted by one of our experts and offered a free quote on your bond.

To complete the bonding process you will have to submit a number of documents pertaining to your bond, along with your bond form. From then on it’s only a matter of time for your bond to be underwritten.

Contract Bond Application

To apply for a contract surety bond, fill out the online application. We will get in touch with you as soon as we have processed and reviewed your application

Call us at 866.450.3412 anytime to speak to one of our surety bond professionals. They can help you with the application process and answer all your questions regarding getting bonded in Texas.

Further Reading

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.