Bond guide
Contractor license and permit bonds
License and permit bonds guarantee that a contractor will follow the laws and rules tied to a license or permit.
How they differ from contract bonds
Contract bonds guarantee a specific project. License and permit bonds guarantee ongoing compliance with a licensing law or permit conditions, and the obligee is a government body.
Getting one
- Find the required bond type and amount from your licensing authority
- Apply with your business and owner information
- File the bond with the authority as instructed
- Renew it with your license
Frequently asked questions
Who sets the bond amount?
The licensing authority or the city or county issuing the permit.
Is credit checked?
Often, though smaller license bonds may be issued with limited underwriting.
Is it the same as a performance bond?
No. It guarantees compliance with licensing or permit rules, not completion of a specific contract.
More bond guides
- Performance bonds for contractors
- Payment bonds
- Bid bonds
- Maintenance bonds
- Supply bonds
- Contractor license and permit bonds
- How to get bonded as a contractor
- Bonding capacity explained
- What determines performance bond cost
- Public works bond laws: the Miller Act and state statutes
- Surety prequalification checklist for contractors
Last updated October 15, 2026 · How we research