Texas License & Compliance Surety Bonds
Many Texas businesses and licensed professionals must file a surety bond before a state agency will issue or renew their license, permit or registration. Fortunately, Lavon Insurance helps you find the exact bond your Texas license requires, from TABC bonds to health spa, credit services and athlete agent bonds.
Surety Bonds for Regulated Texas Businesses
A license or compliance bond is a financial guarantee that a business or professional will follow the laws and regulations tied to their license. In other words, the state agency wants assurance that customers and the public are protected if the bonded party doesn’t comply.
The exact bond, however, depends on the activity, the agency involved and the requirement issued to you. This hub covers specialized Texas bonds administered by the Texas Alcoholic Beverage Commission (TABC) and the Texas Secretary of State.
Bond names can be similar, yet use different forms, amounts or obligees. Therefore, if an agency has told you the bond type, amount or form, have it ready when you apply. Choosing the correct form matters more than choosing a bond whose name looks familiar.
Find the Bond Your Business or Profession Requires
To get started, choose a category below to review the bond, current Texas requirements and how to apply.
Texas TABC Surety Bonds
Certain TABC licenses and permits require a bond. For example, retailers without a Food and Beverage Certificate generally need a $5,000 conduct bond, or $10,000 within 1,000 feet of a public school.
Explore TABC Bonds →Texas Health Spa Surety Bond
Texas health spas generally must register with the Secretary of State and, unless exempt, post $20,000 to $50,000 in security per location, based on prepaid memberships.
Explore Health Spa Bonds →Credit Services Organization Bond
Texas regulates credit services organizations under Finance Code Chapter 393. Typically, a $10,000 bond per location applies when consumers pay before services are fully performed.
Explore CSO Bonds →Texas Athlete Agent Bond
Athlete agents must register with the Secretary of State and file a $50,000 bond. In addition, a separate $100,000 bond applies when the agent provides financial services.
Explore Athlete Agent Bonds →Texas License & Compliance Bond Overview
Requirements vary significantly. As a result, use this table as a starting point, not a substitute for the requirement issued by your agency.
| Bond | Regulating Agency | Typical Bond Amount |
|---|---|---|
| TABC Conduct Bond | Texas Alcoholic Beverage Commission | $5,000, or $10,000 within 1,000 feet of a public school |
| TABC Performance Bond | Texas Alcoholic Beverage Commission | $2,000 for certain BE/BG permits in Bexar, Harris, Dallas and Tarrant counties |
| TABC Fee Interest Bond | Texas Alcoholic Beverage Commission | $30,000 for certain contract and alternating brewers |
| Health Spa Bond | Texas Secretary of State | $20,000 to $50,000 per location, unless exempt |
| Credit Services Organization Bond | Texas Secretary of State | $10,000 per location, when required |
| Athlete Agent Bond | Texas Secretary of State | $50,000, plus $100,000 for financial services |
According to TABC, retailers who hold a Food and Beverage (FB) Certificate generally don’t need the conduct or performance bond.
A Surety Bond Involves Three Parties
Unlike traditional business insurance, a regulatory surety bond provides a financial guarantee to the organization requiring it.
Principal
The business or individual required to get the bond.
Obligee
The state agency or other organization requiring the bond.
Surety
The surety company that issues the guarantee on the principal’s behalf.
How to Get a Texas Compliance Surety Bond
Identify the Requirement
First, confirm the bond type, bond amount and the agency requiring it.
Complete the Application
Next, provide your business or professional information for surety underwriting.
Review & Purchase
Then, once approved, review the bond details carefully and complete your purchase.
File the Bond
Finally, submit the bond as instructed by the Texas agency.
Help Finding the Right Texas Surety Bond
Regulatory bonds can be confusing, especially when the bond is only one step in a larger licensing process.
Specialized Bond Options
Access surety solutions for a wide range of Texas licensing, registration and regulatory requirements.
Online Applications
Many common compliance bonds can be applied for online, and qualifying bonds are issued quickly.
Texas-Based Service
Lavon Insurance is an independent agency helping businesses and individuals statewide.
Verify Your Licensing or Registration Requirement
Ultimately, the government agency decides whether a bond is required. Consequently, always use its current instructions when completing your registration.
Health Spas
Secretary of State health spa registration and security requirements.
Texas Health Spa Information →Athlete Agents
Secretary of State athlete agent registration and bond requirements.
Texas Athlete Agent Information →Texas License & Compliance Bond FAQs
What is a license or compliance surety bond?
It’s a surety bond a government agency requires as a condition of certain licenses, permits or registrations. The bond guarantees that the principal will meet specific legal obligations under the law and the bond form.
Is a surety bond the same as business insurance?
No. Insurance protects the policyholder, whereas a surety bond guarantees obligations to the obligee or the public. Moreover, if the surety pays a valid claim, the principal generally must repay the surety.
Does every Texas business need a license bond?
No. Bond requirements depend on the business activity, profession, license and applicable law. Instead, the agency responsible for the license decides whether a bond is required.
How much is a TABC bond in Texas?
A TABC conduct bond is $5,000, or $10,000 if the business is within 1,000 feet of a public school. A performance bond for certain permits is $2,000, and a fee interest bond for certain brewers is $30,000.
Do I need a TABC bond if I have a Food and Beverage Certificate?
Generally, no. TABC says retailers holding a Food and Beverage Certificate typically don’t need the conduct or performance bond.
How much does a Texas surety bond cost?
The bond amount isn’t the price you pay. Instead, your premium depends on the bond type, amount and the surety’s underwriting, and some bonds may require a credit review.
Can I purchase a compliance bond online?
Yes. Many common surety bonds can be purchased online. However, more complex bonds may require supporting documents before they’re issued.
What information do I need before applying?
Have the legal name of the person or business being bonded, the required bond amount, the obligee’s name and any bond form or written requirement from the agency.
Can Lavon Insurance help if I don’t know which bond I need?
Yes. Send us the letter, application or bond form from the agency, and we’ll help identify the right bond. That said, regulatory questions should ultimately be confirmed with the agency.
Looking for a Different Type of Bond?
All Surety Bonds
Browse every business, individual and license bond we offer.
Visit the Surety Bond Center →Notary Bonds
The $10,000 bond every Texas notary needs.
Texas Notary Bond →Motor Vehicle Bonds
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Motor Vehicle Bonds →Construction Bonds
Bid, performance, payment and lien release bonds.
Construction Surety Bonds →Are you an attorney, CPA or consultant? Become a surety referral partner.
Ready to Find Your Surety Bond?
Select your bond online, or call us if you have a bond form or licensing requirement and need help finding the right bond.
Surety bond availability, approval and premium are subject to underwriting. Licensing, registration, bond amounts and filing requirements are set by the applicable government agency and may change. This page is general information, not legal or regulatory advice.