Texas General Contractor License & Insurance Guide

Texas is one of the few states without a statewide general contractor license. That does not mean a GC operates without oversight — registration, insurance, bonding, and municipal permitting all stand between you and a signed contract. Understanding which requirements apply to which project keeps you legal and keeps you bidding.

State Registration vs. Licensing

There is no state GC license, but Texas requires certain businesses to register with the Secretary of State and the Comptroller for franchise tax and sales tax. If your business name differs from your legal name, you file an assumed-name (DBA) certificate in each county where you do business. None of this replaces insurance — it is the legal scaffolding around it.

City and County Permit Requirements

Almost every Texas municipality requires a registered contractor and proof of general liability insurance before pulling a building permit. Cities like Arlington, Fort Worth, Dallas, Houston, Austin, and San Antonio typically require GL minimums of $300K–$1M and a city business registration. Some require a bond in lieu of a license. Check each jurisdiction's contractor registration page before you bid.

Trades You Sub That Are Licensed

While you are not licensed as a GC, the subs you hire often are. Electrical, HVAC, plumbing, irrigation, and water-well work are licensed by the Texas Department of Licensing and Regulation (TDLR) or the Texas State Board of Plumbing Examiners. As the GC you must verify subcontractor licensure — permitting an unlicensed trade sub can shift that trade's liability onto you.

Bonding for Public and Commercial Work

• Texas Government Code requires performance and payment bonds on public works over $100,000
• The federal Miller Act requires bonds on federal projects over $100,000
• Commercial lenders and owners often require bonds on private work above $500,000
• Bond capacity is built on financials, work-in-progress schedule, and credit

Insurance That Gates Every Project

Even with no state license, you cannot mobilize without insurance. Project owners, lenders, and municipalities all demand GL, workers' comp (or a policy-with-no-employees), and frequently an umbrella and builder's risk. The insurance file is the real license to operate in Texas.

What to Keep on File

• Your own GL, auto, and workers' comp certificates
• Umbrella/excess declarations page
• Surety bond capacity letter
• City/county registrations for every jurisdiction you work in
• Sub COI file with additional-insured endorsements and tracking