Arkansas Contractor License Bond

Arkansas has more than one contractor bond

Arkansas has more than one contractor bond, and they are not interchangeable. A commercial license needs a $10,000 surety bond or cash bond payable to the State of Arkansas, filed with the Contractors Licensing Board as the depository agency. Separately, you may post a surety bond in lieu of a financial statement, set at ten times the required net worth for your classification. And a residential roofing contractor registration requires its own surety bond of at least $15,000. The Contractors Licensing Board has the final word on what any given license requires, so confirm the details with the board before you apply.

The $10,000 commercial bond: amount, obligee, condition, and claims

The penal sum is $10,000, payable to the State of Arkansas. The surety issues the bond; you file it with the Contractors Licensing Board as the depository agency, and it may be a surety bond or a cash bond. The bond is conditioned on the contractor complying with the tax laws of Arkansas and, when applicable, local ordinances, the Workforce Services Law, the Workers' Compensation Law, and the subchapter. The statute makes it the responsibility of each governmental agency to make claims against the bond for collection of any taxes, premiums, contributions, penalties, interest, or fines, within the statute of limitations. For how any other claim against this bond would work, confirm with the board. The bonds must be executed by a resident or nonresident agent, broker, or producer licensed by the Insurance Commissioner to represent the surety. If a contractor does not comply with the bond law, the Board may assess a penalty of up to 5% of the value of the contract performed, and a penalty equal to 10% for a second or later violation. What you pay is a small share of the bond amount, set by the surety from your credit and business details.

Bond in lieu of a financial statement

Arkansas also lets you post a surety bond in lieu of the financial statement, in an amount ten times the required net worth for your license or registration classification. This bond lists the State of Arkansas as obligee, and the State has priority over other claims. It is for the benefit of any person damaged by a breach of a construction contract or an unlawful act, and no right of action accrues on it to anyone other than the Board or a person sustaining loss or damage within its terms. It is in addition to, and not in lieu of, any other surety bond required of you. It does not replace the $10,000 contractor bond. If you use the net-worth route, new applicants must have one half of the minimum net worth requirement in cash.

Steps

1. Confirm you need a commercial license. If your Arkansas work costs $50,000 or more in labor and materials, you are a contractor who must be licensed; single-family residences are excluded, work on your own property does not by itself require a license, and splitting a project into contracts under $50,000 to avoid the law does not escape it.
2. Check your net worth. Meet the net worth for your classification (new applicants hold one half of it in cash), or see step 5 for the bond in lieu of a financial statement.
3. Get the $10,000 bond. Obtain a $10,000 surety bond or cash bond payable to the State of Arkansas.
4. File it with the Board. File the bond with the Contractors Licensing Board as the depository agency; your license will not be released until the bond is properly filed.
5. Weigh the bond in lieu, if it fits. If you use a bond in lieu of a financial statement, remember it is ten times your required net worth and does not replace the $10,000 bond.
6. Keep the bond in force. By statute, cancellation needs 60 days' written notice to the Contractors Licensing Board, and an invalid license may be reinstated on a replacement bond.

Sources

• Commercial Contractors Licensing Law (revised 04.2026)
• $10,000 Surety Bond form (rev. 6/2022 text)
• Bond in Lieu of Financial Statement form
• Commercial New Application (10-2026)
• Residential Contractor Law (revised 04.2026)
• Contractors Licensing Board forms page

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