What is a conduct bond?
Retailers wishing to import, sell, or distribute alcohol in Texas must obtain a conduct bond as part of the permitting process. The only exception is if you have a Food and Beverage (FB) Certificate. The Texas Alcohol Beverage Commission requires this bond, which is why it’s commonly known as a TABC bond. A conduct surety bond ensures that retailers follow all TABC and Texas Alcohol Beverage Code rules and regulations.
Get Your Conduct (TABC) Bond:
Quick Takeaways
- Retailers wishing to import, sell, or distribute alcohol in Texas must obtain a conduct bond as part of the permitting process.
- Your bond must remain active for as long as you plan to operate your business at a specific retail location.
- Some retailers must also post a performance bond and fee interest bond.
- The cost of your Texas conduct bond will depend on your location.
Types of Permits Requiring TABC Bonds
If you live in any of these states and want to operate as a pest control or pesticide use business, you may need a surety bond. Pest control bonds ensure companies use chemicals safely and correctly. Retailers must obtain a TABC bond (see form preview) and submit a permit application to be approved for a permit.
Permit Type | Bond Amount |
| Private Club Registration Permit (N) | $5,000 or $10,000 |
| Private Club Exemption Certificate (NE) | $5,000 or $10,000 |
| Private Club Malt Beverage and Wine Permit (NB) | $5,000 or $10,000 |
| Mixed Beverage Permit (MB) | $5,000 or $10,000 |
| Wine and Malt Beverage Retailer’s Permit (BG) | $5,000 or $10,000 |
| Passenger Transportation Permit (TR) | $5,000 or $10,000 |
| Retail Dealer’s On Premise License (BE) | $5,000 or $10,000 |
| Package Store Permit (P) | $10,000 |
| Wine Only Package Store Permit (Q) | $10,000 |
| Wine & Malt Beverage Retailer’s Off Premise Permit (BQ) | $10,000 |
How does a conduct bond work?
A conduct bond is a three-party agreement between a principal (the business needing the bond), an obligee (the TABC), and a surety (the company that issues and backs the bond in case of claims). If you’d like to apply for any of the permits listed above, you must obtain a conduct bond first. Your bond must remain active for as long as you plan to operate your business at a specific retail location. If you – the principal in the bond agreement – break the contract by violating a law or regulation, someone may file a claim against your bond. Your surety will cover the costs to settle your claim upfront, but you will be responsible for repaying them – up to the full bond amount (either $5,000 or $10,000), plus interest and fees.
Frequently Asked Questions
What other bond requirements does the Texas ABCB set?
Performance Bond
In addition to purchasing a conduct bond to run your alcoholic beverage-related business in Texas, you may also need a $2,000 performance bond (see bond preview). This requirement only applies if you meet all three of these criteria:- You don’t have a Food and Beverage Certificate.
- Your business is in Harris, Dallas, Bexar, or Tarrant counties.
- You hold or are applying for a Retailer Dealer’s On-Premise License or Wine and Beer Retailer’s Permit.
Fee Interest Bond
If you meet these three criteria, you’ll also need a $30,000 fee interest bond.- You hold a Brewer’s License (or Nonresident Brewer’s License).
- You’re participating in a contract brewing arrangement or an alternating brewery proprietorship.*
- You don’t own a fee interest in a brewing facility.
How much does a conduct bond cost in Texas?
The cost of your Texas conduct bond will depend on your location. If your business is within 1,000 feet of a public school, you need a $10,000 bond. If it’s farther than 1,000 feet from a public school, you only need a $5,000 bond. We can issue these bonds for as low as $100. Remember to renew your bond annually before the expiration date listed on your bond form.
How to Get a Conduct Bond in Texas
ZipBonds offers the fastest and most secure option for getting the license and permit bonds you need. Our all-digital platform is intuitive and straightforward. Apply online or call us at 888-435-4191 to speak with an agent directly. We’d be happy to walk you through the process.
About ZipBonds.com
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.