Texas Business License Bond Requirements by Agency (2026)
There is no single Texas business license bond. The agency that licenses you sets the amount — TxDMV, SOS, TDI, SML, TDB, TABC, plus city permit bonds.
Form 01-752 · Obligee: State of Texas, through the Comptroller
Texas sales tax bonds,
Texas sales tax bonds,
issued same day — when the Comptroller asks for security.
Got a letter from the Texas Comptroller asking you to post security for your sales tax permit? This is the bond that answers it. The Comptroller sets the amount in the letter — by law never more than the greater of $100,000 or four times your average monthly tax liability (Tax Code §151.253(b)). The bond is continuous and renews each calendar year (§151.253(c)).
- Continuous Bond of Seller, Form 01-752
- Keeps your cash in the business
- Houston-based agent, every Texas permit
Why you got the letter
Why the Comptroller asked you for security.
In the Comptroller's own words, "There is no fee for the permit, but you may be required to post a security bond." A Texas sales tax permit only issues to an applicant who qualifies under the security rules in Tax Code Chapter 151, Subchapter G (§151.201(a)). The permit application itself says it plainly: "You will receive more instructions if we require a bond."
The letter usually comes for one of three reasons:
- You applied for a new permit. Every applicant for a sales tax permit, or for registration as an out-of-state retailer, must file adequate security if the Comptroller asks (§151.251(a)). New businesses with no Texas tax history and owners who had trouble on an earlier taxpayer number are common cases.
- You fell behind. If the Comptroller finds a permit holder delinquent, it shall require security (§151.251(b)). "Delinquent" means failing to file all reports due or to pay any determination on time (§151.251(c)) — one missed report counts.
- The Comptroller wants extra assurance. It may require security as a condition of keeping a permit when it decides that is necessary to ensure compliance (§151.251(d)).
While you arrange the security, the Comptroller may issue a temporary permit for a set period (§151.252). It expires on the date printed on it, without further notice, so start the bond as soon as the letter arrives.
What it is
What is a sales tax bond?
A Texas sales tax bond is a surety bond that guarantees the State of Texas you will pay the sales and use taxes you collect, with any penalties and interest. The Comptroller's form calls it a Continuous Bond of Seller (Form 01-752).
Three parties sign on. You are the principal — the business holding the permit. The State of Texas, acting through the Comptroller of Public Accounts, is the obligee — the party the bond protects. The surety is the insurance company that issues the bond and backs your promise with its money.
It is security for the State, not insurance for you. If you do not pay, the Comptroller demands payment from you and from the surety at the same time (§151.257(b)). The surety pays, then collects every dollar back from you. By signing Form 01-752 you also let the Comptroller share your otherwise confidential tax records with the surety to support a claim.
The bond covers more than the state's 6.25%. It secures state, city, county, transit authority and special-district sales and use taxes (34 TAC §3.327(a)), and the form gives each of those authorities the right to sue on it. For a Houston business, that means the City of Houston and METRO as well as the State.
Bond amount
What sets your bond amount.
The Comptroller sets your sales tax bond amount in its letter, and Texas law caps it at the greater of $100,000 or four times your average monthly sales tax liability.
That cap comes from Tax Code §151.253(b): "The comptroller shall fix the amount of security required in each case … The maximum amount of security that may be required is the greater of $100,000 or four times the amount of the person's average monthly tax liability." The Comptroller weighs the state and local tax you owe or are expected to owe, and must state the amount it set in its written notice (§151.255). Most pages online quote $100,000 as the bond amount. It is the ceiling for smaller accounts, not a required figure.
Two other rules matter. An itinerant vendor — a seller with no fixed place of business — can be asked for a bond of no less than $500 (34 TAC §3.327(b)). And if the amount on file later looks too low, or you fall behind, the Comptroller may demand a new or additional bond (§3.327(d)).
| Average monthly sales tax | Four times monthly liability | Most the Comptroller may require |
|---|---|---|
| $600 Small shop | $2,400 | $100,000 |
| $3,000 Busy store or restaurant | $12,000 | $100,000 |
| $30,000 High-volume retailer | $120,000 | $120,000 |
Hypothetical businesses, for illustration. The amount in your Comptroller letter is the amount your bond must carry.
What you pay
What sets your premium.
You do not pay the bond amount. You pay a premium to the surety, and that premium is set by credit underwriting.
The underwriter starts with the Comptroller's letter: the amount it set and the reason it asked. A sales tax bond exists because the State decided an account needed security — a new business with no Texas history, or a permit that fell behind (§151.251). So the underwriter reads your filing history alongside your personal and business credit, the same way a lender would.
The bond is a new and separate obligation for its full amount each calendar year (§151.253(c)), so the premium is charged for each year it stays in force. If your credit is bruised, apply anyway. Every file is underwritten on its own, and the soft credit pull does not affect your score.
The only number that matters is yours. Get a quote online in a few minutes, or call (281) 484-8320.
Your options
Bond, cash, CD assignment or letter of credit?
The Comptroller accepts several kinds of security (Tax Code §151.253(a); 34 TAC §3.327(e)). They all satisfy the letter. They differ in what they do to your cash.
| Security | What you put up | While it is held |
|---|---|---|
| Surety bond Form 01-752 | A yearly premium | Your cash stays in the business |
| Cash deposit Personal checks accepted | The full amount | Held until the Comptroller releases it; can be sold to cover unpaid tax (§151.258) |
| CD or account assignment Form 00-808 | The full amount, in an insured bank, savings or credit-union account | You give up control of it until written release; interest still goes to you |
| Bank letter of credit | Whatever your bank requires | Must be one the Comptroller deems sufficient and secure |
| U.S. Treasury bonds | The full amount | Must be readily convertible to cash |
Not accepted: corporate stocks and bonds, or personal guarantees (34 TAC §3.327(e)(2)).
Deposited security is frozen for at least the two years it takes to qualify for release. For most small businesses, that money does more work as inventory or payroll than sitting with the State.
How to get bonded
Four steps, starting from your letter.
- 01
Send the letter
Send us the Comptroller's letter and your Texas taxpayer number. The letter states the bond amount the Comptroller set.
- 02
Get a quote
Apply online. A soft credit pull starts underwriting, and the underwriter prices your premium from the letter, your filing history and your credit.
- 03
Sign and pay
Sign the application and indemnity agreement and pay the premium. Approved bonds issue the same day.
- 04
File Form 01-752
The surety executes Form 01-752 with its notarized power of attorney attached (34 TAC §3.327(g)). File it with the Comptroller as your letter directs.
Legal requirements
Texas statute, rule, form and deadlines.
Statute
Texas Tax Code §151.251–§151.262 (Chapter 151, Subchapter G) — who must post security, the amount ceiling, acceptable security, release, forfeiture and suits on the bond.
Rule
34 Texas Administrative Code §3.327 — the Comptroller's rule on security, including the $500 itinerant-vendor floor and the requirement that the bond be executed by the surety's attorney-in-fact with a notarized power of attorney attached.
Bond form
Form 01-752, Continuous Bond of Seller (Sales Tax), completed by the surety company.
Obligee & venue
The State of Texas, payable at Austin. Suits on the bond are filed in Travis County (§151.262(d)) — a Houston business defends a bond claim in Austin, not Harris County.
Deadlines that bite
10 days to post new security after a forfeiture (§151.260(a); 34 TAC §3.327(h)). At least 20 days' written notice before a permit revocation hearing (§151.203(b)). 30 days' written notice before a surety can withdraw from the bond (Form 01-752).
Recent changes
None to the security rules: every section of Subchapter G was last amended in 2001 or earlier, and 34 TAC §3.327 in 2002. Since September 1, 2023, revocation notices may also be served electronically (§151.203(d), SB 61). Sources last checked October 2, 2026.
Release
When the security is released.
After two consecutive years of compliance, you are entitled to ask for your security back.
Tax Code §151.254(a) says a person who has "for two consecutive years continuously complied with the conditions of the security" is "entitled, on request" to have the Comptroller return, refund or release it — "if in the judgment of the comptroller" the record qualifies. Three things follow. The request is yours to make. Nothing happens automatically. And the decision is the Comptroller's, so no agent can promise a release, a reduction or a waiver.
The "four years" figure that shows up online belongs to motor fuels licences (Tax Code §162.111(c)), which run on a different clock. For sales tax, it is two.
Buying a business
Buying an existing business or changing its legal structure.
A sales tax permit belongs to one owner at one location and cannot be transferred (§151.201(c)). Buy a store, or turn a sole proprietorship into an LLC or corporation, and the new owner applies for a new permit. That application triggers a fresh security review: the Comptroller looks at the payment history and may decide no bond is needed, or may require one if ownership changed substantially (34 TAC §3.327(i)).
Separately, a buyer can inherit the seller's unpaid tax. Tax Code §111.020 requires the buyer to hold back enough of the purchase price to cover what the seller owes until the seller produces a receipt or a certificate showing nothing is due. A buyer who closes without one is liable up to the purchase price. The Comptroller's guide Buying an Existing Business (Publication 98-117) explains how to request a Certificate of No Tax Due on Form 86-114 before closing.
Other Comptroller bonds
Other Texas Comptroller tax-security bonds.
- Mixed beverage tax bonds — bars, restaurants and private clubs with a mixed beverage permit post two Comptroller bonds, one for the gross receipts tax (Form 67-102) and one for the mixed beverage sales tax (Form 67-105). Both are separate from the TABC conduct bond.
- IFTA bond — Form 56-100, required of an interstate trucker's IFTA licence only when the Comptroller sees late filing or payment problems. It is not generally required of first-time applicants.
- Motor fuels tax bond — Form AP-111 for fuel suppliers, distributors, importers, exporters and blenders: two times the tax that could accrue in a reporting period, from $30,000 to $600,000 (Tax Code §162.111), with a four-year release clock.
- Sexually oriented business fee bond — Form 42-102, for businesses with a history of late fee payments. The fee doubled to $10 per customer entry on September 1, 2023 (Bus. & Com. Code §102.052).
The combative sports gross receipts tax bond is filed with the Texas Department of Licensing and Regulation, not the Comptroller, so it is not covered here.
Why Surety Bond Houston
Answer the letter before the deadline does.
Same-day issuance
A temporary permit has an expiration date printed on it. Approved bonds issue the same day, so you can file before it runs out.
40+ years of combined experience
Our team has been placing Texas surety bonds for decades. We read the Comptroller's letter with you and match the bond to exactly what it asks for.
Houston-local, Texas-wide
We are a Houston agency writing for permit holders across Texas. Your bond names the State and any suit on it is heard in Travis County, wherever your store is.
Related bonds
Other Texas bonds that touch sales tax.
Looking for something else? See every Texas license and permit bond we write, or our Houston bond guide.
FAQ
Texas sales tax bond questions.
Is $100,000 the minimum sales tax bond in Texas?
No. $100,000 is part of the maximum, not the minimum. Texas Tax Code §151.253(b) says the Comptroller fixes the amount in each case, and the most it may require is the greater of $100,000 or four times your average monthly tax liability. The amount you need is the one stated in the Comptroller's letter. The only published floor is $500, for itinerant vendors with no fixed place of business (34 TAC §3.327(b)).
How is the sales tax bond amount set?
The Comptroller sets it case by case, weighing the state and local sales tax you owe or are expected to owe and the need to protect the state (Tax Code §151.253(b)), and states the figure in a written notice (§151.255). If the amount on file later looks inadequate, the Comptroller can demand a new or additional bond (34 TAC §3.327(d)).
How much does a Texas sales tax bond cost?
You pay a premium, not the bond amount. The premium is set by credit underwriting: the surety reads the amount in your Comptroller letter, your filing history and your credit. Because the bond is a new obligation each calendar year, the premium is charged for each year the bond stays in force. The fastest way to a real number is a quote, which takes a few minutes online.
Can I get a sales tax bond with bad credit?
Credit is one input, not an automatic answer. Every application is underwritten individually, and the underwriter also reads why the Comptroller asked for security. Nobody can promise approval before an underwriter sees the file, but applying costs nothing and starts with a soft credit pull. If a bond is not the right fit, the Comptroller also accepts cash, an assigned CD or bank account, or a bank letter of credit.
Can I post a cash deposit instead of a bond?
Yes. Tax Code §151.253(a) and 34 TAC §3.327(e) accept cash (personal checks are fine), an irrevocable assignment of an insured bank, savings or credit-union account or CD on Form 00-808, a bank letter of credit, or U.S. Treasury bonds. Corporate stocks and bonds and personal guarantees are not accepted. Deposited security stays out of your hands until the Comptroller releases it in writing, and the Comptroller can sell it to cover unpaid tax (§151.258). A bond keeps that cash in your business in exchange for a yearly premium.
How long does a sales tax bond last, and when does it renew?
It is continuous. Under Tax Code §151.253(c) the bond is a new and separate obligation for its full amount each calendar year, and it stays in effect until the surety is released. Form 01-752 extends it automatically from year to year. The surety can withdraw on 30 days' written notice to the Comptroller, which would leave you needing replacement security.
Can I get my sales tax security released or refunded?
Possibly, but you have to ask. Under Tax Code §151.254(a), once you have complied with the security conditions for two consecutive years, you are entitled on request to have the security returned, refunded or released, if the Comptroller judges that you qualify. Nothing happens automatically, and no one can promise the Comptroller's decision. The four-year release clock you may read about applies to motor fuels licences, not sales tax.
What happens if I ignore the Comptroller's letter?
If you do not provide the security, the Comptroller must revoke or suspend your permit (Tax Code §151.256), after a hearing you get at least 20 days' written notice of (§151.203). Selling taxable items without a permit exposes the business to an injunction (§151.262), and getting the permit back requires paying everything owed and filing new security (§151.259).
Ready when you are
Get your Texas sales tax bond today.
Send us the Comptroller's letter. Same-day issuance, statewide, from a Houston agent.