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Contractor License Bond

Complete Guide to becoming a Bonded Contractor

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How Do I Get Bonded?

The Complete Contractor License Bond Guide

Contractor License Bonds are required by most states to guarantee that a general contractor will operate their business in compliance with the rules and regulations pertaining to their specific contractor license. Ultimately, these bonds exist to protect the public from fraudulent practices or from being ripped off by a contractor. Lance Surety offers numerous CLB programs designed to get all types of contractors approved at excellent rates, in all 50 states. || It is important to understand that Contractor License Bonds are NOT the same as Bid and Performance Bonds, which is a common misconception. They guarantee the compliance with a state or local contractor’s license, where as most performance bonds guarantee that obligations of a contract are fulfilled.

Questions about Contractor License Bonds

Are Contract License Bonds the Same as Contract Bonds?

Contractor license bonds are different from contract bonds, including performance, payment and bid bonds. It’s a common misconception that the two types of bonds are the same, but it’s important to differentiate between them.

You’ll need a contractor license bond as a part of your licensing process with your local or state authorities. This type of bond is a prerequisite for obtaining the right to operate. It ensures you will act lawfully in your capacity as a licensed contractor.

In contrast, contract bonds are required on a project basis. You may need to get them before bidding on public or private construction projects. They guarantee your performance as a contractor on a specific project.


You may need a different type of contractor license bond depending on the license you want to obtain. The common types include:

  • General contractor license bond
  • Residential contractor license bond
  • HVAC contractor license bond
  • Electrical contractor license bond
  • Plumbing contractor license bond
  • Home improvement contractor license bond
  • Roofing contractor license bond
  • Landscape contractor license bond
  • And others

The type of contractor license bond you’ll have to post also depends on the authority that requires you to get bonded. This means you may need to get a:

  • State contractor license bond
  • County or municipality contractor license bond
  • City contractor license bond

Ready to start your bonding process? Just fill out our online application form for a free, no-obligations bond quote.

How Much Does a Contractor License Bond Cost?

The bond amount you have to post is determined by your local or state authorities. Your bond cost is a fraction of this amount.

Your surety sets your bond cost, known as premium, on the basis of your personal and business finances. The most important factor is your personal credit score. The stronger your profile is, the lower your price would be. It’s very rare that a collateral would be required for this type of bond.

While it’s more difficult to get bonded with bad credit, with Lance Surety Bonds, it’s certainly possible. You can use our Bad Credit Program to obtain the contractor license bond you need.

For a full overview of the bond price formation, you can review our detailed How Much Does a Surety Bond Cost? guide.

If you have more questions about your contractor license bond cost, just call us at (877)-514-5146.

How Do I Get a Contractor License?

The contractor license requirements vary across the U.S. Your state, municipal, or city authorities set the exact criteria you'll have to fulfill to get licensed.

Typically, you’ll need to do the following:

  • Get training and hands-on experience in your specialty or trade
  • Pass an exam proving your knowledge and skills
  • Register a business entity and trade name in the state
  • Obtain an Employer Identification Number from the IRS
  • Get a general liability and a worker’s compensation insurance policy
  • Obtain a surety bond
  • Pay the required application and licensing fees

For a full overview of the licensing requirements in your location, check out the drop-down menu below to find your state.

Additional Resources

How to Get Bonded Guide

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About Us

Lance Surety Bonds
Lance Surety Bond Associates, Inc. is a Pennsylvania-based surety bond agency that offers bonding at competitive rates in all 50 states. Established in 2010, our company has grown to become one of the top online bond producers in the country. Working exclusively with A-rated and T-listed bonding companies gives us the confidence to offer a 100% money-back guarantee. read more

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What Our Clients Have To Say?

  • Kimberlee Ables
    Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
  • Andrew Poincot
    Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
  • Margie Martinez
    We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!

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