Texas Surety Bonds

There are over 150 different types of Texas surety bonds needed by various professionals to operate legally in the state.

Our Texas bond guide below explains who needs a surety bond and the bonding process, in addition to helping you find the right surety bond.

A Texas surety bond is any type of bond required by an obligee for you to legally conduct work in the State of Texas (this also entails any court bonds needed for Texas court proceedings).

Obligees (the entities requiring the bonds) include The Secretary of State, municipalities like Austin and Houston, the Texas Department of Licensing and Regulation, and other regulatory bodies.

What is the Purpose of a Surety Bond?

A surety bond acts as a form of credit to you. It will pay your customers if you fail to complete the agreed-upon work. Or, in the case of some commercial bonds like a sales tax bond, it pays the government if you default on contractual obligations, such as remitting sales tax. The exception is a fidelity bond, which protects you or your clients from dishonest employees who may commit theft, embezzlement, forgery, etc.

It's important to understand how surety bonds work and that you're responsible for paying claims. You can take a look at our guide to learn how to get bonded in Texas to learn more.

The obligee (the one requiring you to get the bond) should be able to provide a copy of the Texas surety bond form you need. However, if you are still early in the application process and haven't been given any forms, understanding the three main categories of surety bonds is a good place to begin your search.

• License and permit bonds - these types of bonds are required for various professionals to operate legally. Auto dealer bonds, mortgage broker bonds, and athlete agent bonds are some examples. Notary bonds for notary publics also fall into this category.
• Contractor bonds – businesses and individuals working on public construction projects are likely required to obtain a contractor bond. These contract bonds may include bid bonds, performance bonds, and payment bonds.
• Court bonds – Texas courts require these bonds for a variety of purposes. These include probate bonds or judicial bonds.

If you're unsure which bond type you need, you can use our find your bond tool or contact one of our surety bond experts.

Most Common Surety Bonds in Texas

The most commonly needed license bonds in Texas are as follows:

Texas Motor Vehicle Dealer Bond – Needed to sell vehicles and get a dealer license. It is required by the Texas Department of Motor Vehicles (TXDMV).

Certificate of Title Bond – Needed to transfer the ownership of a vehicle that has a lost/inaccurate title.

Contractor License Bond – Required to perform contracting work in several cities across Texas. Keep in mind that there are no contractor license bonds required by the state itself, only cities and towns. Depending on the type of work and where you're performing it, you may need both a contractor license bond and contract bonds.

Texas Freight Broker Bond – Also referred to as a BMC-84 bond, this bond is required for brokers by the Federal Motor Carrier Safety Administration (FMCSA).

Texas Public Insurance Adjuster Bond – This bond is required by the Texas Department of Insurance for all insurance adjusters.

Texas Title Insurance Agent Bond – Per the Texas Title Insurance Act, all title insurance agents must post a bond prior to conducting business in the state.

Texas Third Party Debt Collector Bond – All third-party debt collectors in Texas need this bond to operate legally.

Texas Credit Services Organization Bond – Required by The Secretary of State. This bond ensures that the principal (bond holder) acts in accordance with Chapter 393 of the Finance Code.

Texas Mixed Beverage Sales Tax Bond – Required to sell mixed drinks. Generally paired with the Texas Mixed Beverage Gross Receipts Tax Bond.

Getting a Texas surety bond is generally an easy process that is complete within a couple days. Below is generally what you can expect from the bonding process.

1. Fill out a bond application.
2. Once your bond is approved, you will get a quote and an indemnity agreement.
3. Sign the agreement and email or fax it back to your bond provider.
4. Pay the invoice online.

You will receive a copy of the surety bond in an email once everything is processed. Additionally, the original bond will be sent to you in the mail.

How to Get License and Permit Bonds

Texas requires license and permit bonds in order to get licenses/permits for many different professions. You can find the full list of license and permit bond requirements for Texas by using our bond requirement search tool.

 How to Get Court Bonds in Texas

Court bonds can be required by the courts for various reasons. For example, you'll need an appeal bond in Texas if you want to appeal a court decision. If you want to become a legal guardian of a minor/disabled individual, you'll need a guardianship bond. Lastly, you will need a probate bond if you want to operate as a fiduciary of an estate. Apply for a court bond here.

How to Get Contract Bonds for Public Jobs

Construction bonds such as bid bonds and performance bonds are needed to bid bonds and work on public construction jobs. However, they're typically required by cities or municipalities as opposed to the state. Learn more about the process of getting bonded for jobs by reading our construction bond guide.

Surety companies may need financial statements and a credit report when assessing your eligibility for a bond. They want to know that you can pay bond claims if they happen and that you can handle the responsibilities tied to a bond.

How Long Does It Take to Get a Surety Bond in Texas?

When you go with an experienced surety company, bonding is a quick and painless process that can be done in as little as a day or two. Larger bonds and performance and payment bonds often require a little extra processing time.

How Long Does a Surety Bond Last?

When it comes to surety bonds there are renewable bonds and continuous bonds. Renewable bonds are valid anywhere from 1-4 years before they need to get manually renewed. Continuous bonds are automatically renewed every year until canceled. Any expiry dates will be laid out in your bond's paperwork.

"How much will my surety bond cost?" is one of the most common questions. Bond costs are generally 1-10% of the full bond amount that's required of you in Texas. So, for example, if you need a $10,000 bond, your costs could be anywhere between $100 - $1,000.

Bond cost varies drastically depending on the bond amount required of you and your rate. Your rate is determined by an underwriting process. An underwriter will look at your financial statements, credit score, past bonds to determine your financial strength.

You can use our bond premium calculator to get an instant estimate. If you need to get a firm surety bond quote, you can apply to get an online approval.

It's possible to get surety bonds with bad credit in Texas, but it will depend on the bond type you need and how serious your credit issues are.

You can get approved for most license and permit bonds even with bad credit. It's also possible to get approved for court bonds with credit issues, but again, this will depend on how serious the issues are.

However, it's harder to get contract bonds with credit issues. You may be able to get contract bonds with minor credit problems, but you'll probably be limited to smaller projects. Unfortunately, it's almost impossible to get approved for contract bonds with severe credit issues such as large collections or civil judgments (unless you're a larger contractor with strong CPA business financials).

Choose your city from the list below if you wish to learn more about its bonding requirements. For an overview of all bonds in the state, keep reading.

San AntonioFort WorthHoustonDallas