Did you know? Chicago residents experienced a 21% increase in robberies from July 2023 and June 2024. As violent crimes keep escalating in Illinois, the need is clear for security companies that can protect property and individuals. 

In this guide, we’ll explain how to start a security company in Illinois since there’s been a growing demand for such services. 

What is a security company, and why start one in Illinois?

A security company provides services designed to protect people, property, and assets. These services can range from basic security guard patrols to more advanced offerings like security guard services, executive protection, and risk assessment.

Why Illinois?

With its bustling urban centers, sprawling suburbs, and diverse corporate landscape, Illinois presents a compelling case for security entrepreneurs — especially as violent crimes continue to grow despite the Chicago Transit Authority’s efforts to increase security. 

Chicago, the third-largest city in the U.S., is a major hub for businesses of all sizes. These businesses, along with countless residential communities and public spaces, require effective security measures to protect their people and property. 

In fact, just last year, Illinois state lawmakers were pondering a bill that would make Chicago grocery stores, gas stations, and banks hire armed security officers to cover all the hours they are open to the public. 

Key components of a security company

Starting a security company in Illinois requires a careful blend of services, personnel, and technology, all working together in harmony. Here's a breakdown of the key components:

Services offered

Understanding how to start a private security company in Illinois means knowing what types of services you can offer. Here’s a quick look at some options:

• Personal security: Offering personal security involves providing close protection for people who may be at risk, such as executives or VIPs. This often includes protection services, threat assessments, and secure transportation.
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• Corporate security: Protecting businesses and their assets may be your major focus. This can include having uniformed security officers, access control systems, surveillance monitoring, and designing loss prevention strategies.
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• Event security: Large gatherings, from concerts to sporting events to conferences, need security personnel to manage crowds, control access, and respond to incidents.

Equipment and technology

All security companies rely on their tools and tech to get the job done, and these are some of those tools:

• Surveillance systems: Closed-circuit television (CCTV) cameras, video analytics, and remote monitoring systems are essential for observing and recording activity. Keep in mind that the importance of these systems will depend on the type of services you offer. 
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• Communication tools: Two-way radios, mobile phones, and dispatch systems ensure clear and efficient communication between security personnel and management. 
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• Access control systems: Keycard readers, biometric scanners, and security gates help manage access to restricted areas. The higher the risk, the more stringent these access control systems will likely be. 
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• Alarm systems: Intrusion detection systems, fire alarms, and panic buttons provide early warnings and rapid response capabilities. If your company only provides physical security, these might not be as critical, but they are important, nonetheless. 

Personnel and roles

Security companies need apt professionals who can carry out operations and oversee them. These are some of the roles you’ll typically find in most security companies: 

• Licensed security officers: The backbone of any security company, these professionals are trained to deter crime, observe and report, and respond to emergencies. 
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• Administrative staff: Behind the scenes, administrative personnel handle scheduling, client communication, billing, and other essential tasks.
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• Management team: Experienced managers oversee operations, ensure compliance with state regulations, and guide the company's strategic direction.

Remember: By leveraging the power of Belfry, your security company can improve communication, enhance accountability, and streamline operations. 

How to start a security company in Illinois in 6 steps

Let’s start with the first step of the process:

Step 1: Develop a sound business plan

A business plan is a document that serves as your roadmap, outlining your goals, strategies, and how you plan to achieve them. It’s your blueprint for success, guiding your decisions and helping you stay focused on your objectives.

Here are some key elements to include in your business plan:

• Services you offer: Clearly define the types of security services you'll provide. Will you focus on personal security, corporate security, event security, or a combination of several?
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• Target market: Identify your ideal clients. Are you targeting businesses, residential communities, or specific events? Understanding your target market helps you tailor your services and marketing efforts.
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• Financial projections: Outline your financial expectations, including startup costs, projected revenue, and profitability timelines. This section shows the financial viability of your business and helps you secure funding if needed.

How Belfry helps

Belfry simplifies financial planning and goal setting for your security company. Its reporting features provide key insights into your revenue and expenses, making it easier to forecast your financial performance and track your progress toward your goals. 

Step 2: Secure financing for your business

Launching a security company requires capital, and securing the necessary funds is a critical step in the process. Fortunately, there are several avenues you can explore:

• Small business loans: Traditional bank loans or loans from the Small Business Administration (SBA) can provide the funding you need to get started. 
  
  In Illinois, you can find resources and assistance through the Illinois Small Business Development Centers (SBDC) network. They offer free counseling and training to help you navigate the loan application process.

• Personal savings: If you have the means, using your savings can be a great way to fund your business without incurring debt.
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• Investors: Seeking investment from angel investors or venture capitalists is another option, though it can require giving up some equity in your company.

Understanding startup costs

Before seeking funding, it's crucial to have a clear picture of your startup costs. These can include:

• Licensing fees: Obtaining the necessary licenses and permits from the Illinois Department of Financial and Professional Regulation (IDFPR) will involve fees. We’ll share the specifics below. 
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• Equipment costs: Investing in essential equipment like surveillance systems, communication devices, and uniforms can be a significant expense.
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• Insurance: Securing adequate insurance coverage, as required by the state, is another important cost to consider.
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• Marketing and advertising: Promoting your services to potential clients will require a marketing budget.

For a more detailed breakdown of startup costs, check out our full article on this topic. 

Step 3: Obtain the required licenses and certifications

Navigating the regulatory landscape is a crucial part of learning how to start a security company in Illinois. To operate legally and build trust with your clients, you must get the necessary licenses and certifications. Here's a simplified guide to help you through the process:

Acquiring licenses

Let’s take a quick look at the licenses you’ll need to get:

• Security contractor license: This license, issued by the Illinois Department of Financial and Professional Regulation (IDFPR), is required to operate a security agency in the state. 
  
  You'll need to meet specific experience and education requirements, pass an examination, and provide proof of insurance. The application fee for this license is $500, and there is an additional fee for the examination.

• Permanent Employee Registration Card (PERC): To obtain a PERC in Illinois, security officers must complete a 20-hour basic training course covering topics such as law, ethics, and emergency procedures. Additional firearms training is mandatory if officers will be armed.

Mandatory training and certifications

Illinois requires security officers to complete specific training before they can work. These trainings are required to get a PERC in Illinois: 

• 20-hour basic training: All security officers must complete a 20-hour basic training course covering topics like law, ethics, use of force, and emergency procedures.
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• Firearms training: If your officers will be carrying firearms, they must undergo additional firearms training and qualification.

How Belfry helps

Belfry simplifies the process of tracking employee certifications and license renewals with its intuitive management features. You can easily store and track employee information, get reminders for renewals, and make sure your team is compliant with all state requirements.

Step 4: Purchase equipment and hire staff

With your business plan in place and licenses secured, it's time to invest in the tools and people that will form the backbone of your security company.

Essential equipment

As discussed earlier, the right equipment is crucial for providing effective security services. Consider the following essentials:

• Vehicles: Depending on the nature of your services, you may need patrol cars, vans, or even specialized vehicles to transport high-profile clients.
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• Uniforms: Professional uniforms create a sense of authority and help your officers stand out. Ensure your uniforms comply with any state regulations regarding security officer attire.
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• Surveillance systems: Invest in high-quality surveillance cameras, recording equipment, and monitoring systems to provide full security coverage for your clients.
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• Communication devices: Reliable communication is essential. Equip your team with two-way radios, mobile phones, and a robust dispatch system.

Hiring and training security personnel

Building a skilled and trustworthy security team is crucial for your company's success. Here's a typical hiring and training process in Illinois:

1. Recruitment: Advertise open positions and carefully screen applicants, checking for relevant experience, clean background checks, and a professional demeanor.
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2. Licensing: Ensure all potential hires obtain their Permanent Employee Registration Card (PERC) from the IDFPR, as we mentioned in step 3.
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3. Training: Provide comprehensive training that meets Illinois requirements, including the 20-hour basic training course from step 3 and any specialized training relevant to your services (e.g., firearms training, defensive tactics).

Step 5: Set up your office and build an online presence

As your security company takes shape, it's time to establish a base of operations and make your presence known in the digital world. Let’s start by discussing whether to set up a physical office or run operations virtually: 

Physical office or virtual operations?

Consider whether a physical office is necessary for your business model at all. You can choose to run in one of two ways:

• Physical office: A traditional office space provides a professional environment for client meetings and employee training and centralizes operations. This option does mean you’re adding an extra expense to your monthly costs. 
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• Virtual office: With the right tech and a dedicated team, you can run your security company virtually, reducing overhead costs and offering greater flexibility.

Creating a professional online presence

In today's digital age, a strong online presence is vital for any business, and security companies are no exception. Pay attention to your:

• Website: A professional website serves as your online storefront, showcasing your services, highlighting your expertise, and providing a way for potential clients to contact you.
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• Online marketing: Develop an online marketing strategy to reach your target audience. This can include search engine optimization (SEO), social media marketing, and online advertising. 

Remember: How you present your services in your online marketing efforts will depend on your target market. For instance, the strategies and messaging you use to market corporate security services will likely differ from how you market residential security services. 

How Belfry helps

Belfry’s platform includes powerful CRM (Customer Relationship Management) tools to help you manage your operations and client interactions efficiently. With Belfry, you can:

• Centralize client information: Store all client details, communication history, and contract information in one place, accessible from anywhere.
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• Track opportunities: Monitor user interactions and manage potential clients effectively.
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• Schedule tasks and appointments: Stay organized and ensure timely follow-up with clients and prospects.

Whether you choose a physical or virtual office, Belfry's tools can help you manage your operations efficiently and build strong client relationships.

Step 6: Ensure compliance with Illinois laws and regulations

Operating a security company in Illinois means playing by the rules. Here’s what you need to pay attention to before starting your operations: 

Insurance and Bonding

Illinois law requires security companies to have certain insurance policies in place. These policies protect you, your employees, and your clients from potential financial losses. 

You'll need Commercial General Liability Insurance to cover things like bodily injury or property damage that might occur during operations. You'll also need Workers' Compensation Insurance to cover medical expenses and lost wages for employees injured on the job. 

In addition to insurance, you’ll need a surety bond. Illinois requires a surety bond as part of the security contractor licensing process. The bond amount typically depends on the size and financial stability of the company. Consult the IDFPR for the specific requirements.

To acquire a surety bond in Illinois, you'll typically work with an insurance company or a bonding agency. They'll assess your company's financial stability and determine the bond amount and premium. For specific requirements, consult the official requirements PDF from the IDFPR. 

Business registration and taxes

Before you can officially open your doors, you need to register your security company with the state of Illinois. This involves choosing a business structure and filing the necessary paperwork with the Secretary of State. 

You'll also need to register for an Employer Identification Number (EIN) from the IRS and with the Illinois Department of Revenue (IDOR) for applicable state taxes. 

How Belfry helps

Belfry’s compliance tools help track state-required licenses and certifications, ensuring your business stays up-to-date with Illinois laws effortlessly. Belfry also simplifies payroll processing, tax withholding, and reporting so you can reduce the risk of errors and stay compliant. 

How Belfry can help in starting a security company in Illinois

You've now learned the ins and outs of how to start a security company in Illinois. You've got the knowledge, the drive, and the vision. Now, it's time to turn that vision into reality and build a thriving security business.

Belfry is an all-in-one security management platform that simplifies every aspect of your business, from day-to-day operations to long-term growth. Here's how Belfry goes beyond the basics to help you launch and scale your security company in Illinois:

• Effortless onboarding: Streamline the onboarding process for new hires with digital onboarding checklists, automated document collection, and integrated background checks.
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• GPS-powered time and attendance tracking: Ensure accurate timekeeping and eliminate buddy punching with GPS-verified clock-in and clock-out, geofencing capabilities, and real-time location tracking.
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• Incident reporting and management: Empower your officers to submit detailed incident reports from their mobile devices, complete with photos and videos. Manage and track incidents efficiently, ensuring timely follow-up and resolution.
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• Automated billing and invoicing: Generate accurate invoices automatically, track payments, and manage client billing with ease.
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• Customizable client portal: Provide your clients with a personalized portal where they can access reports, view invoices, manage their services, and communicate with your team, enhancing transparency and satisfaction.
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• Advanced analytics and reporting: Gain valuable insights into your operations with complete reports on key metrics like incident trends and response times. 

Schedule a Free Demo Today.‍