Arizona's security industry is booming, offering entrepreneurs a prime opportunity to start their own security companies.

In this guide, we’ll explain step-by-step how to start a security company in Arizona and why Belfry is the ideal partner to help manage your operations.

Let’s begin by diving into why now is the perfect time to start a security company in Arizona.

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Why start a security company in Arizona?

Over the past few years, there’s been an increase in property crimes and burglaries in Arizona; in fact, the chances of becoming a victim of property crime in Arizona is 1 in 49 — well above the national median. 

This demand is particularly evident in commercial sectors such as retail, office buildings, and residential complexes, where security personnel are hired to deter crime and manage access control. 

The takeaway? There’s certainly a demand to cover security services. If you’re ready to capitalize on the opportunity in Arizona, this article will guide you, step-by-step, on how to get started.

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A comprehensive guide on how to start a security company in Arizona

Here’s a 5-step guide with everything you need to know about how to start a security company in Arizona:

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Step 1: Familiarize yourself with Arizona's licensing requirements

First things first, you need to understand what it takes to operate legally. In Arizona, this means obtaining a Private Investigator/Security Guard Agency license from the Arizona Department of Public Safety (DPS). 

To apply for this license, you'll need to gather some key information and documents. The DPS website offers a checklist. Key items include:

• Personal information of all owners, partners, and corporate officers
• Fingerprint-based state and federal background checks for all individuals mentioned above 
• Proof of bonding and liability insurance (more on this below)
• Company name and business structure (sole proprietorship, LLC, etc.)

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Now, let's talk about bonding and insurance. These are crucial for protecting your business and your clients. Here are the specifics:

• Security companies in Arizona are required to post a surety bond of $2,500. This bond is a form of financial assurance that ensures the company complies with its legal obligations. 
• According to Section 32-2613 of the Arizona Revised Statutes, liability insurance is required for security companies. The statute says the DPS shall establish the minimum limits of such liability insurance policies.

Note: Keep in mind that all your security guards will also need to undergo background checks and complete the state-required training before they can start working. (We'll dive deeper into guard requirements in a later step.)

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Belfry’s role in tracking license renewals and guard certifications

Belfry's security management platform helps you track license expiration dates and store guard certifications and manage other essential compliance tasks, giving you peace of mind and freeing you to focus on core business strategies. 

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Step 2: Set up your business structure

Laying the foundation of your security company involves establishing your business structure and getting your financial house in order. Here's how to navigate this crucial step:

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Choose a business structure

First, decide how you want to structure your business. The most common options in Arizona are:

• Limited Liability Company (LLC): This structure offers personal liability protection and flexible taxation.
• Corporation: Corporations provide stronger liability protection but have more complex tax requirements.
• Sole proprietorship: This is the simplest structure but offers no personal liability protection.

Pro tip: Consult a legal professional to decide the best structure for your long-term goals.

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Register your business

Once you've chosen a structure, you'll need to register your business with the Arizona Corporation Commission. This involves filing the appropriate paperwork and paying the required fees. You can find detailed information and online filing tools on their website. 

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Get an EIN

Next, obtain an Employer Identification Number (EIN) from the IRS. This is essentially a social security number for your business and is necessary for tax purposes, opening a bank account, and hiring employees. 

You can apply for an EIN online for free through the IRS website.

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Open a business bank account

Separate your personal and business finances by opening a dedicated business bank account. This will simplify bookkeeping and make tax preparation easier.  

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Step 3: Secure startup capital and consider startup costs

Launching any business requires a financial investment, and security companies are no exception. Before you begin operations, it's essential to calculate your startup costs and secure the necessary capital. Here’s a detailed look at what you’ll need to do so:

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Estimate your startup costs

These expenses include:

• Licensing fees: These include the cost of your agency license, individual guard licenses, and fingerprint processing fees.
• Insurance: As discussed earlier, you'll need to secure both surety bonds and liability insurance.
• Equipment: This may include uniforms, firearms (if applicable), communication devices, patrol vehicles, and security technology (e.g., surveillance systems).
• Marketing: You'll need to invest in marketing efforts to attract clients, such as website development, online advertising, and printed materials.
• Operational costs: Consider initial expenses like office rent, utilities, and administrative supplies — even the first few weeks of payroll for your first contracts.

While specific prices can vary, here's a dedicated article with a detailed breakdown of startup costs for security companies. This resource will give you a clearer picture of the financial commitment involved.`

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Explore funding options

Once you have a good grasp of your startup costs, it's time to explore funding options. These may include:

• Small business loans: Several banks and credit unions in Arizona offer loans specifically designed for startups. The Small Business Administration (SBA) also has loan programs that can help.
• Grants: Research grant opportunities for security businesses in Arizona. Some organizations and government agencies offer grants to support new ventures in specific industries.
• Investor backing: Seek out angel investors interested in the security sector. Prepare a compelling business plan and pitch to secure their support.

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Keep track with Belfry

Belfry can help you manage your finances effectively with its integrated financial tracking features. You can monitor expenses, generate invoices, and even create budget projections to stay on top of your security company’s financial health.

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Step 4: Hire and train your security personnel

In Arizona, all security guards must meet specific requirements before they can start working. This includes:

• Background checks: All guards must undergo state and federal fingerprint-based background checks through the Arizona DPS. This helps ensure that individuals with criminal records or a history of violence are not employed in positions of trust.
• Training: Arizona requires security guards to complete a state-approved training program. For example, an unarmed guard card license takes 8 hours to complete. These programs cover essential topics such as legal powers and limitations, communication skills, emergency procedures, and the use of force.

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Maintain certifications and renewals

Arizona requires security guards to renew their licenses every two years. This usually involves completing continuing education courses to maintain their knowledge and skills. For specifics and fees, you can always consult the Arizona DPS. 

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Streamline all the processes of this step with Belfry

Belfry offers a centralized platform to simplify the process of managing guard training, certifications, and renewals. You can schedule guard training, track certifications, and get reminders for renewals, confirming your team is compliant with Arizona's requirements.

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Step 5: Market your security company

You've built a solid foundation for your security company, secured the necessary licenses, and assembled a qualified team. Now, it's time to spread the word and attract clients. Here's how to effectively market your security services:

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Build a professional online presence

A strong online presence is vital. Start by creating a professional website that showcases your services, expertise, and client testimonials. Make sure your website is mobile-friendly and optimized for search engines.

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Use SEO content marketing

Create informative and engaging content that addresses the security needs and concerns of your target audience. This could include blog posts, articles, or videos discussing topics like crime prevention tips, security technology trends, or the benefits of hiring security guards. 

By optimizing your content with relevant keywords, you can improve your security website's visibility in search engine results and attract organic traffic.

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Leverage online directories

List your business in online directories specific to the security industry and general business directories like Google My Business. This boosts your visibility and helps clients find you.

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Network strategically

Attend industry events, join relevant associations, and connect with businesses and organizations that could benefit from your services. Networking can help you build relationships and generate valuable referrals.

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Manage operations and compliance smoothly with Belfry

So, you've learned how to start a security company in Arizona. Now, it's time to focus on running your security company efficiently and effectively. 

This is where Belfry comes in.

Belfry is an all-in-one security management platform designed to streamline your operations, reduce administrative burden, and help you stay compliant with Arizona's licensing and labor laws. 

It’s your virtual command center, helping you manage every aspect of your business with ease so you can focus on scaling up.

Here's how Belfry can help you run better operations and provide more value to clients:

• Eliminate errors and boost efficiency: Belfry automates scheduling, guard assignments, and payroll, ensuring accuracy and saving you valuable time. In turn, you can focus on growing your client base and taking your business to the next level.
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• Ensure seamless compliance: Keep accurate records of guard licenses, certifications, and training with Belfry. Get automated reminders for renewals and stay ahead of compliance requirements, minimizing the risk of penalties.
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• Improve personnel accountability: Equip your security personnel with Belfry's mobile app. They can clock in/out, manage schedules, report incidents, and access important information on the go. 
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• Simplify financial management: Automate invoicing, track expenses, and manage payroll with ease. Belfry's financial tracking features provide valuable insights into your company's financial health, helping you make informed decisions and drive profitability. 
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• Enhance client satisfaction: Provide your clients with access to a dedicated portal where they can view real-time reports, monitor on-site activities, and communicate with your team. This level of transparency fosters trust and strengthens client relationships. 

With Belfry, you can go beyond the basics of how to start a security company in Arizona and build a truly outstanding business. We help you focus on what drives success: Delivering outstanding security services and attaining consistent growth.

Schedule a Free Demo Today.