How to Get a Surety Bond in Fort Worth

Surety bonds are a critical component of doing business in Fort Worth, Texas—whether you’re a contractor bidding on public projects, a licensed auto dealer, or a business owner navigating municipal regulations. These financial guarantees protect clients, government entities, and the public by ensuring that contractual obligations, legal requirements, and ethical standards are met. Unlike insurance, which protects the policyholder, a surety bond protects the party requiring the bond (the obligee) by holding the bonded party (the principal) accountable. In Fort Worth, where construction, real estate, and small business activity are booming, understanding how to obtain a surety bond is not just advantageous—it’s often mandatory.

Obtaining a surety bond in Fort Worth involves more than filling out a form. It requires knowledge of local regulations, financial preparedness, and the ability to navigate relationships with bonding companies and state agencies. This guide walks you through every step of the process—from identifying the type of bond you need to submitting your application and maintaining compliance. Whether you’re a first-time applicant or looking to renew an existing bond, this comprehensive tutorial will equip you with the tools and insights to secure your bond efficiently and confidently.

Step-by-Step Guide

Step 1: Determine the Type of Surety Bond You Need

The first step in obtaining a surety bond in Fort Worth is identifying the specific type required for your business or project. Texas and Tarrant County have distinct bonding requirements depending on your industry and scope of work. Common categories include:

• Contract Bonds: Required for construction projects, especially those involving public entities like the City of Fort Worth or Tarrant County. These include bid bonds, performance bonds, and payment bonds.
• License and Permit Bonds: Mandatory for professionals such as auto dealers, mortgage brokers, contractors, and collection agencies to obtain or renew their state or local licenses.
• Court Bonds: Used in legal proceedings, such as appeal bonds, fiduciary bonds, or injunction bonds.
• Public Official Bonds: Required for elected or appointed officials who handle public funds, including city clerks or treasurers.
• Specialty Bonds: Includes notary bonds, fuel tax bonds, and customs bonds for import/export businesses.

Consult the Texas Department of Licensing and Regulation (TDLR), the City of Fort Worth’s Business Licensing Division, or the specific agency requiring the bond to confirm the exact bond type and amount. For example, a Texas auto dealer must obtain a $25,000 motor vehicle dealer bond, while a general contractor working on a city-funded project may need a performance bond equal to 100% of the contract value.

Step 2: Verify Bond Amount and Requirements

Bond amounts are not arbitrary—they are set by law or contract. For license and permit bonds, the amount is determined by the licensing authority. For construction projects, the amount may be specified in the bid documents or contract. In Fort Worth, many public works projects follow the Miller Act guidelines, which require performance and payment bonds for contracts exceeding $150,000.

Always request a written specification from the obligee (the entity requiring the bond) to avoid discrepancies. For instance, if you’re applying for a contractor’s license through TDLR, their website lists the exact bond amount and language required. Some bonds require specific wording, such as “The Principal shall comply with all provisions of the Texas Occupations Code, Chapter 53,” and failure to include this language can result in rejection.

Step 3: Assess Your Financial Standing

Surety companies evaluate your creditworthiness, financial history, and business stability before approving a bond. While credit score is a major factor, it’s not the only one. Applicants with lower credit scores (below 650) may still qualify but will likely pay higher premiums—typically between 1% and 15% of the bond amount.

To strengthen your application:

• Review your personal and business credit reports from Equifax, Experian, and TransUnion.
• Ensure all debts are current and disputes are resolved.
• Prepare recent financial statements, including profit and loss statements, balance sheets, and bank statements.
• If you’re a new business, provide personal financial disclosures and a detailed business plan.

Strong financials can reduce your premium and increase your chances of approval. For example, a contractor with $500,000 in annual revenue and a 720 credit score may pay only 1% to 3% for a $100,000 bond, whereas someone with a 580 score and inconsistent cash flow might pay 8% to 15%.

Step 4: Choose a Reputable Surety Bond Provider

Not all bonding companies are equal. In Fort Worth, you’ll find local agencies, regional brokers, and national surety providers. Choose a company licensed by the Texas Department of Insurance (TDI). You can verify licensing status at tdi.texas.gov.

Look for providers with:

• Experience in your industry (e.g., construction, automotive, or healthcare)
• Strong customer reviews and BBB accreditation
• Fast turnaround times (some offer same-day issuance)
• Clear communication and transparent pricing

Reputable providers will ask detailed questions about your business, not just your credit score. They may request references, project histories, or proof of insurance. Avoid companies that promise “instant approval with no credit check”—these are often scams or unlicensed entities.

Step 5: Complete the Application

Most applications can be submitted online, though some require paper forms for court or public official bonds. The application typically includes:

• Full legal name and business structure (LLC, corporation, sole proprietorship)
• Business address and contact information
• Owner and officer details, including Social Security numbers for personal guarantees
• License number and issuing authority
• Project details (for contract bonds), including contract value and scope
• Financial documentation (as requested)

Be thorough and accurate. Incomplete or incorrect information is the leading cause of application delays. If you’re applying for a contractor’s bond, include your TDLR license number. If applying for a bid bond on a city project, reference the project ID and bid deadline.

Step 6: Pay the Premium

Once your application is approved, you’ll receive a quote for the bond premium. Payment methods vary by provider but commonly include credit card, ACH transfer, or check. Premiums are non-refundable, even if the bond is canceled or not used.

For example, a $50,000 license bond with a 2% premium costs $1,000 annually. Some providers offer multi-year discounts—for instance, paying for three years upfront might reduce the total cost by 15%.

Always request a receipt and a copy of the paid bond document. Some agencies require proof of payment before issuing your license or awarding a contract.

Step 7: Receive and File Your Bond

After payment, the surety will issue the bond. Most modern providers deliver bonds electronically via email or a secure portal. The bond document will include:

• The bond amount
• The names of the principal (you), surety (bond provider), and obligee (government agency or client)
• The bond’s effective and expiration dates
• The surety’s signature and seal
• Language required by Texas law or the obligee

File the bond with the appropriate authority. For state licenses, submit to TDLR or the Texas Department of Motor Vehicles (TxDMV). For city projects, deliver to the Fort Worth Public Works Department or the contracting agency. Always confirm receipt in writing. Some agencies require original wet-ink signatures, while others accept PDFs with digital signatures.

Step 8: Maintain Compliance and Renew on Time

Surety bonds are not one-time purchases. Most license bonds expire annually, while contract bonds expire upon project completion. Missing a renewal can result in license suspension, project stoppage, or fines.

Set calendar reminders 60 days before expiration. Many surety companies send renewal notices, but don’t rely solely on them. Review your bond terms annually to ensure compliance with any changes in Texas law. For example, in 2023, TDLR updated bonding requirements for home improvement contractors—failure to comply could invalidate your bond.

Also, notify your surety of any material changes to your business—such as a change in ownership, address, or criminal history—as these may trigger a bond review or require a new application.

Best Practices

Start Early

Don’t wait until the last minute. Processing times vary. While some bonds are issued within 24 hours, others—especially those requiring underwriting for large construction projects—can take 5 to 10 business days. If you’re bidding on a city project with a deadline, apply at least two weeks in advance.

Keep Records Organized

Maintain a digital and physical file for every bond you hold. Include:

• Application copies
• Payment receipts
• Correspondence with the surety
• Proof of filing with obligees
• Renewal dates and notes

This documentation is invaluable during audits, disputes, or when applying for future bonds.

Understand Bond Claims

A bond claim occurs when the obligee alleges you failed to meet your obligations. This could be due to incomplete work, non-payment to subcontractors, or license violations. If a claim is filed, your surety will investigate. If valid, they may pay the claimant up to the bond amount—and then seek reimbursement from you.

Best practice: Always fulfill contractual obligations. If a dispute arises, document everything. Respond promptly to any notice from your surety. Ignoring a claim can lead to financial liability, damaged credit, and difficulty obtaining future bonds.

Build Relationships with Surety Providers

Treat your surety as a long-term partner, not a transactional vendor. Companies that understand your business and track your history are more likely to offer favorable rates and faster approvals. If you’ve successfully completed multiple projects with clean claims records, ask about bond volume discounts or loyalty programs.

Stay Informed on Regulatory Changes

Texas laws and Fort Worth city ordinances change frequently. Subscribe to updates from TDLR, the City of Fort Worth Business Licensing Portal, and industry associations like the Texas Association of Builders or the Fort Worth Chamber of Commerce. A recent change in 2024 requires all new home improvement contractors to carry a $20,000 bond, up from $10,000. Staying informed prevents costly compliance errors.

Use Professional Help When Needed

Complex bonds—such as court bonds or multi-million-dollar construction bonds—often require legal or bonding expertise. Don’t hesitate to consult a licensed surety agent or attorney familiar with Texas bonding law. A small investment in professional advice can prevent thousands in penalties or project delays.

Tools and Resources

Official State and City Resources

• Texas Department of Licensing and Regulation (TDLR): tdlr.texas.gov — Provides licensing requirements, bond forms, and application portals for contractors, dealers, and other licensed professionals.
• City of Fort Worth Business Licensing: fortworthtexas.gov/business — Lists local bonding requirements, permit applications, and contact information for the Business Licensing Division.
• Texas Department of Motor Vehicles (TxDMV): txdmv.gov — Required for auto dealer and title bond information.
• Texas Department of Insurance (TDI): tdi.texas.gov — Verify surety company licensing and file complaints.

Online Bond Calculators

Several reputable sites offer free bond cost estimators based on bond type, amount, and credit score:

• SuretyBonds.com — Industry leader with instant quotes and Texas-specific forms.
• BondIt.com — Offers educational resources and a bond finder tool.
• ZipBonds — Specializes in fast online issuance for Texas license bonds.

These tools help you compare costs and providers before committing.

Business Credit Monitoring Tools

Improve your bond approval odds by monitoring your credit:

• Nav — Tracks both personal and business credit scores with alerts.
• Experian Business — Offers detailed reports and dispute tools.
• Credit Karma Business — Free access to credit monitoring and recommendations.

Document Management Software

Use cloud-based tools to store and organize bond documents:

• Google Drive — Create labeled folders for each bond and set sharing permissions.
• Dropbox — Securely share documents with accountants or attorneys.
• Notion — Build a dashboard with renewal dates, bond amounts, and contact info.

Industry Associations

Join local and state groups for networking and updates:

• Texas Association of Builders — Offers bonding guidance and legislative advocacy.
• Fort Worth Chamber of Commerce — Hosts workshops on compliance and bonding.
• National Association of Surety Bond Producers (NASBP) — Provides training and certified agents.

Real Examples

Example 1: Residential Contractor in Fort Worth

Juan Rodriguez runs a small residential remodeling company in North Fort Worth. He needed a $15,000 contractor’s license bond to renew his TDLR license. His personal credit score was 610, and he had been in business for three years with steady revenue.

Juan applied through a local Fort Worth bonding agency that specialized in construction bonds. He submitted his TDLR license number, two years of tax returns, and a business plan. The agency approved him at a 5% premium—$750 annually. He received the bond electronically within 48 hours and filed it with TDLR online. His license was renewed without delay, and he now receives annual renewal reminders via email from his surety provider.

Example 2: Auto Dealer in South Fort Worth

Maria Lopez opened a used car dealership on South Lamar Street. Texas law requires a $25,000 motor vehicle dealer bond. Her credit score was 595 due to past medical debt, which had been paid off.

Maria worked with a national surety provider that offered bonds for applicants with lower credit. She provided bank statements showing $80,000 in liquid assets and a letter from her accountant verifying her business’s cash flow. She paid a 12% premium—$3,000 for the first year. The bond was issued in three business days. She now uses the same provider for her next bond renewal and has seen her premium drop to 8% after two years of clean claims.

Example 3: Construction Firm on a City Project

Smith & Sons Contracting won a $1.2 million public works contract with the City of Fort Worth for road resurfacing. The RFP required a performance bond (100% of contract value) and a payment bond (100% of contract value).

The firm had an established relationship with a national surety company. They submitted detailed financials, project timelines, and subcontractor agreements. The surety conducted a full underwriting review over seven days. The bonds were issued with a 1.5% premium—$18,000 total. The firm completed the project on time with zero claims. Their success improved their bonding capacity for future bids, and their next bond premium dropped to 1.2%.

Example 4: Non-Profit Agency Requiring a Fiduciary Bond

A Fort Worth-based nonprofit managing foster care funds needed a $50,000 fiduciary bond to comply with state regulations. The executive director had no prior bonding experience.

They consulted a local attorney who specializes in nonprofit compliance. The attorney helped them complete the court bond application, provided the required legal language, and connected them with a surety experienced in fiduciary bonds. The bond was issued within five days. The nonprofit now uses a digital calendar to track renewal dates and has added bond compliance to its annual audit checklist.

FAQs

How long does it take to get a surety bond in Fort Worth?

Processing times vary. Simple license bonds can be issued in as little as 24 hours if credit is good and documents are complete. Complex construction bonds or those requiring underwriting may take 3 to 10 business days. Always apply early to avoid delays.

Can I get a surety bond with bad credit?

Yes. Many surety companies offer bonds to applicants with credit scores below 650. Premiums will be higher—typically 5% to 15% of the bond amount—but approval is still possible with strong financials, collateral, or a co-signer.

Do I need a bond for every city in Texas?

No. A bond issued for a Texas state license (e.g., TDLR) is valid statewide. However, some cities like Fort Worth may have additional local bonding requirements for specific activities, such as door-to-door sales or temporary event permits. Always check local ordinances.

What happens if I don’t get a required bond?

Failure to obtain a required bond can result in denied licenses, rejected bids, fines, or legal action. For example, an unlicensed contractor working on a city project can be fined up to $10,000 per violation under Texas law.

Can I cancel my surety bond early?

You can request cancellation, but the surety may require written consent from the obligee. Premiums are non-refundable, and cancellation may trigger a review of your compliance history. It’s better to renew than cancel unless you’re exiting the business.

Is a surety bond the same as insurance?

No. Insurance protects you from losses. A surety bond protects the obligee. If a claim is paid, you are legally obligated to reimburse the surety. It’s a three-party agreement, not a risk-transfer product.

How do I know if my bond is valid?

Check that it includes: the correct bond amount, the obligee’s full legal name, your business name, the surety’s signature and seal, the effective and expiration dates, and language required by Texas law. Verify the surety’s license with TDI.

Can I get a bond for a one-time project?

Yes. Many surety companies offer short-term or single-project bonds. These are common for event permits, temporary contractors, or one-off public bids. Rates may be higher due to lack of history, but they’re available.

Do I need a bond if I’m a subcontractor?

Often yes. If you’re working on a public project, the prime contractor may require you to provide a payment bond. Even on private jobs, some clients require subcontractors to be bonded as a condition of hire.

Where can I get help if my bond application is denied?

Ask your surety provider for a detailed explanation. Common reasons include poor credit, incomplete documentation, or unresolved claims. You can improve your application by correcting financial issues, providing collateral, or working with a bond broker who specializes in high-risk applicants.

Conclusion

Obtaining a surety bond in Fort Worth is a straightforward process when approached with preparation and clarity. Whether you’re a new business owner stepping into the Texas market or an established contractor expanding your operations, understanding the steps—from identifying the correct bond type to maintaining compliance—ensures you remain legally operational and competitively positioned.

The key to success lies in proactive planning, accurate documentation, and building relationships with reputable surety providers. Don’t treat bonding as a bureaucratic hurdle—it’s a signal of credibility. A bonded business inspires trust with clients, partners, and government agencies. In a city as dynamic as Fort Worth, where reputation and reliability are paramount, a surety bond is more than a requirement—it’s a strategic asset.

Use the tools, resources, and best practices outlined in this guide to navigate the bonding process confidently. Stay informed on regulatory changes, keep meticulous records, and treat each bond as an investment in your business’s future. With the right approach, securing your surety bond won’t just get you through compliance—it will help you grow.