Starting a Security Company in the United States: A Comprehensive Guide
Published: December 15, 2025 | Updated: December 15, 2025 | 15 min read
The private security industry in the United States continues to grow as organizations seek professional protection services across commercial, residential, and governmental sectors. Starting a security company requires navigating a complex regulatory environment that varies significantly across all 50 states and U.S. territories.
This comprehensive guide provides security industry professionals, entrepreneurs, and department administrators with essential information about licensing requirements, regulatory compliance, and the foundational steps needed to establish a legally compliant security services company in the United States.
Starting a security company in the U.S. requires obtaining state-specific business licenses, completing background checks, securing liability insurance, and meeting training requirements that vary by state. Most states require a Private Patrol Operator or equivalent license, with fees typically ranging from $300 to $1,500 depending on the state. Processing times vary from 6 weeks to 4 months, and insurance requirements generally start at $300,000 minimum coverage. Always verify current requirements directly with your state’s licensing agency, as fees and regulations change periodically.
Table of Contents
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Download Free PDF GuideOverview of Security Industry Regulations
The security services industry in the United States operates under a decentralized regulatory framework where each state maintains independent authority over licensing, training standards, and operational requirements. Unlike federally regulated industries, private security companies must comply with state-specific statutes that can differ dramatically in their complexity and requirements.
The Regulatory Landscape
Security company regulations typically fall under state departments of public safety, consumer affairs, agriculture (in states like Florida), or specialized licensing boards. These agencies establish standards for business licensing and registration, owner and operator qualifications, personnel background screening, mandatory training requirements, insurance and bonding minimums, and operational permits and specialty endorsements.
“When I started my security company in California in 2019, I budgeted based on the application fee I found online. What I didn’t realize was that the total cost including the license fee, insurance deposits, and qualified manager requirements would be nearly three times what I expected. My advice: call your state licensing agency directly and ask for a complete breakdown of all costs before you commit to a business plan.”
— Security company owner, Los Angeles area
Types of Security Services
Understanding your specific service category is essential, as many states require separate licenses or endorsements for different security specialties:
Armed Security Services — Providing security personnel authorized to carry firearms requires additional weapons permits, specialized training, and often more stringent background checks. Professional identification for armed security personnel requires specialized credentials.
Unarmed Security Services — Standard security patrol, access control, and monitoring services without firearms. This category represents the majority of private security work. Learn more about security officer identification standards.
Private Investigation — Investigative services require separate licenses with distinct qualifications in most states.
Alarm and Electronic Security — Installation and monitoring of electronic security systems may require separate technical licenses.
Event Security — Specialized security for concerts, sporting events, and large gatherings may require event-specific permits.
National Requirements and Common Standards
While specific requirements vary by state, certain elements appear consistently across most jurisdictions.
Business Registration Requirements
Business Structure Selection — All states require security companies to register as a legal business entity. The most common structures include Sole Proprietorship (simplest structure, no personal liability protection), Limited Liability Company or LLC (most popular choice with liability protection), Corporation (formal structure for larger operations), and Partnership (multiple owners sharing responsibilities).
Federal Employer Identification Number (EIN) — Required for tax purposes and hiring employees.
Business Name Registration — Companies must register their business name with the state.
Background Check Standards
Nearly all states mandate comprehensive background screening including state criminal history review through state law enforcement agencies, federal criminal history via FBI background check through fingerprints, and in some cases credit history review and employment verification. Disqualifying factors typically include felonies, violent crimes, and fraud convictions, though specific disqualifications vary by state.
Background check processing times significantly impact your licensing timeline. Submit fingerprints immediately upon beginning the application process. Most states require separate background checks for both the business license and individual security personnel credentials. In California, for example, BSIS notes that complete applications typically process in approximately 4 months—significantly longer than many applicants expect.
Insurance and Bonding Requirements
General Liability Insurance — Requirements vary by state. For example, Florida requires minimum coverage of $300,000, while California requires $1,000,000. Some states require per-occurrence and aggregate limits.
Professional Liability Insurance — Protects against claims of negligence or failure to perform.
Workers’ Compensation Insurance — Required when hiring employees in most states.
Surety Bonds — Many states require bonds. For example, New York requires a $10,000 surety bond for Watch, Guard, or Patrol Agency licenses, while Florida requires $10,000 for unarmed and $50,000 for armed security agencies.
Training and Certification Standards
Pre-Assignment Training — Initial training requirements vary significantly by state. Topics typically include introduction to private security law and regulations, legal authority and limitations, emergency response procedures, report writing and documentation, communication and conflict de-escalation, and ethics and professional conduct.
Ongoing Continuing Education — Many states require annual or biennial continuing education hours for license renewal.
Specialized Training — Additional training for armed security includes firearms qualification and use of force laws. In New York, armed security guards require 47 hours of firearms training; in Florida, Class G armed licensing requires 28 hours of firearms training.
Step-by-Step Process for Starting Your Company
Phase 1: Planning and Research (Weeks 1-2)
Step 1: Define Your Service Specialization — Consider local market demand and competition analysis, your experience and qualifications, capital requirements for your service types, and state licensing requirements for your planned services.
Step 2: Develop Your Business Plan — Include an executive summary and company description, market analysis and competitive positioning, service offerings and pricing strategy, marketing and client acquisition plans, and financial projections for 3-5 years.
Step 3: Research State-Specific Requirements — Review your state licensing agency website directly, contact the licensing board with specific questions, consult industry associations, and review sample applications and fee schedules.
“I almost made a costly mistake by assuming the requirements I found on a third-party website were current. When I finally called the Texas DPS directly, I learned that the experience requirements had changed and I needed two consecutive years of verifiable work experience—not just any security background. The lesson: always verify requirements directly with the licensing agency, not websites that may have outdated information.”
— Security contractor, Houston
Phase 2: Legal Formation (Weeks 3-4)
Step 4: Register Your Business Entity — Choose and reserve business name, file Articles of Organization (LLC) or Incorporation, pay state filing fees, and obtain federal EIN.
Step 5: Obtain Required Insurance — Request quotes from multiple carriers, ensure coverage meets your state’s minimums (verify current requirements), and obtain certificates of insurance.
Step 6: Secure Business Location — Lease commercial space or designate home office as permitted by your state, ensure zoning compliance, and set up business communications.
Phase 3: Licensing Application (Weeks 5-12+)
Step 7: Complete Background Checks — Schedule fingerprinting appointments, complete personal history statements, submit employment verification, and pay background check fees (typically $50-$150 depending on state).
Step 8: Complete Required Training — Identify state-approved training providers, complete pre-licensing courses as required by your state, and obtain training certificates.
Step 9: Submit License Application — Complete all application forms accurately, compile required documents, include insurance certificates, and pay application fees.
In California, BSIS notes that more than 50% of applications are typically deficient, causing unexpected delays. Before submitting, double-check that all forms are complete, all required documents are included, and photographs meet specifications. Consider having an industry professional review your application before submission. Join your state’s security industry association early—these organizations provide invaluable guidance on regulatory compliance and common application mistakes to avoid.
Phase 4: Pre-Operational Setup (During Application Review)
Step 10: Await License Approval — Respond to information requests promptly, continue business planning, and develop employee recruitment programs.
Step 11: Establish Operational Systems — Implement scheduling and dispatch systems, develop client contract templates, create standard operating procedures, and establish payroll and accounting.
Step 12: Prepare for Launch — Obtain security officer credentials for your personnel, purchase equipment and uniforms, implement quality assurance protocols, and launch marketing initiatives.
📋 Pre-Launch Checklist
- ✓Business license received and displayed
- ✓Insurance policies active and current
- ✓Employee credentials verified
- ✓Client contracts reviewed by attorney
- ✓Emergency procedures established
- ✓Reporting systems operational
- ✓Quality control protocols implemented
- ✓Marketing materials finalized
State-by-State Licensing Requirements
The following table provides a general licensing overview for all 50 states and the District of Columbia. Important: Fees, training requirements, and processing times change frequently. Always verify current requirements directly with your state’s licensing agency before beginning the application process.
State licensing requirements, fees, and processing times are subject to change. The information below is provided as a general reference only. Contact your state’s licensing agency directly for current, accurate requirements before making business decisions. Some states have multiple license types with different fee structures.
*Fee ranges are estimates and change periodically. Contact state agencies directly for current fee schedules. Highlighted states (blue) have verified data from official state sources.
Detailed State Guides: Major Markets
California: Private Patrol Operator License
Regulatory Authority: Bureau of Security and Investigative Services (BSIS)
Total Fees: Approximately $1,320 ($550 application fee + $770 license fee) — verify current amounts with BSIS
Processing Time: Approximately 4 months for complete applications (per BSIS FAQ)
California maintains one of the most comprehensive regulatory frameworks in the nation. The PPO license authorizes security guard and patrol services throughout the state.
Key Requirements (verify current requirements with BSIS):
- ✓Minimum age 18
- ✓No felony convictions or disqualifying offenses
- ✓Qualified Manager with 2 years (4,000 hours) security experience AND 2,000 hours management/administrative experience (per AB1244)
- ✓Must pass 2-hour multiple-choice examination
- ✓$1,000,000 liability insurance minimum
Learn the complete process for getting your security badges approved by California BSIS.
Texas: Security Services Contractor
Regulatory Authority: Texas Department of Public Safety
License Type: Class B Security Contractor License
Processing Time: Varies—verify with DPS
Texas regulates security through a comprehensive program covering guard companies, investigators, and alarm services.
Key Requirements (per TX Occupations Code Chapter 1702):
- ✓Company representative must have 2 consecutive years of verifiable full-time experience in security services
- ✓Must pass company representative examination
- ✓Security officers require Level II Training (6 hours)
- ✓Note: Texas has no reciprocal agreements with other states for license acceptance
Florida: Class B Security Agency
Regulatory Authority: Florida Department of Agriculture and Consumer Services (FDACS)
Total Fees: Approximately $500 ($50 application fee + $450 license fee)
License Term: 3 years
Florida maintains rigorous standards for agency licensing and security officer certification through FDACS.
Key Requirements:
- ✓Applicants must be 18+ and US citizens or legal residents
- ✓Level 2 background screening
- ✓$300,000 minimum liability insurance
- ✓Surety bond: $50,000 armed / $10,000 unarmed
- ✓Security officers require 40-42 hours training for Class D license
New York: Watch, Guard, or Patrol Agency License
Regulatory Authority: NY Department of State, Division of Licensing Services
License Fees: $300 individual / $400 corporate
Additional Requirements: $15 exam fee, ~$88.50 fingerprinting fee
New York maintains particularly stringent oversight with comprehensive requirements for security agency operators.
Key Requirements:
- ✓Principals must be at least 25 years old
- ✓2 years’ experience or equivalent
- ✓Must pass Watch, Guard, or Patrol examination
- ✓$10,000 surety bond required
- ✓Liability insurance: $100,000 per occurrence / $300,000 aggregate (if employing guards)
- ✓Security guard training: 8-hour pre-assignment, 16 hours OJT, then 8 hours annually
- ✓Armed guards: Additional 47-hour firearms training
Compliance and Ongoing Requirements
License Renewal and Maintenance
Security company licenses typically require renewal on annual, biennial, or triennial cycles depending on the state. Key renewal considerations include submitting renewal applications 30-60 days before expiration, providing updated insurance certificates, demonstrating proof of continuing education, and paying renewal fees (generally 50-75% of initial fee).
“The biggest mistake I made in my first year was assuming that once I had my license, the hard part was over. I nearly had my license suspended because I let my insurance lapse for just 10 days while switching carriers. Now I have calendar reminders set 90 days, 60 days, and 30 days before every renewal deadline—license, insurance, bond, everything. The regulatory agencies don’t send many reminders, and missing a deadline can shut down your business overnight.”
— Security agency owner, Florida
Record Keeping and Documentation
Personnel Records: Applications, background checks, training certificates, licenses
Operational Records: Client contracts, incident reports, equipment logs
Compliance Documentation: Business licenses, renewal records, audit results
Implement digital record management systems early. Electronic document management ensures accessibility during audits and simplifies renewal processes. Many state agencies now accept or require electronic submissions, making digital-first record keeping increasingly important for operational efficiency.
Resources and Agency Contact Information
National Organizations
ASIS International — Leading organization for security professionals offering industry standards, certifications, and education.
National Association of Security Companies (NASCO) — Trade association providing legislative advocacy and compliance resources.
Security Industry Association (SIA) — Focus on electronic security and technology integration.
Professional Development Resources
Security professionals benefit from state associations, online training platforms, professional certifications, and industry conferences. For badge design and manufacturing resources that meet state standards, explore professional security officer identification standards.
Conclusion
Establishing a security company in the United States requires navigating complex regulatory requirements that vary significantly across jurisdictions. Success depends on thorough planning, meticulous attention to licensing requirements, and commitment to professional standards.
The key to successful company formation lies in thorough research, careful planning, and meticulous attention to regulatory compliance. Always verify requirements directly with your state’s licensing agency before making business decisions, as regulations and fees change periodically. By understanding national commonalities while respecting state-specific requirements, entrepreneurs can build security businesses positioned for long-term success.
📋 Key Takeaways
- ✓Always verify requirements directly with your state licensing agency—online sources may be outdated
- ✓Budget realistically: total costs often exceed listed application fees (include license fees, insurance, bonds)
- ✓Plan for extended timelines: some states take 4+ months to process applications
- ✓Invest in proper insurance coverage from the start—lapsed coverage can suspend your license
- ✓Establish compliance systems and record keeping early
- ✓Join industry associations for guidance, networking, and regulatory updates
- ✓Ensure all personnel have proper credentials and identification
- ✓Build a compliance-oriented culture from day one
Related Resources
This guide provides general information about starting a security company in the United States. Requirements vary by jurisdiction and change over time. Always verify current requirements directly with your state licensing agency and consult with legal counsel for specific guidance. The information provided should not be considered legal or professional advice.
