Curious about how to start a security company in Texas?

Our detailed guide simplifies the process into clear, actionable steps, helping you navigate every requirement with confidence and ease.

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Step 1: Develop a business plan

The first step in starting your Texas-based security company is to determine the type of security services you will offer. You could specialize in residential security, commercial security, or event security, for instance. Understanding your niche helps you tailor your services to meet specific market needs.

Conduct thorough research to understand the market demand and competition in Texas. Identify existing security companies, their service offerings, pricing, and customer reviews. This research will highlight market gaps your company can fill.

Outline your startup costs, operational expenses, and revenue projections.

Costs to consider include:

• Licensing
• Insurance
• Equipment
• Salaries

Having a clear financial plan helps in securing funding and managing your budget.

Decide on the legal structure for your business. Options like a Limited Liability Company (LLC) or a corporation each have benefits and tax implications. Consulting with a legal advisor can help you choose the best option for your business.

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Step 2: Register your business

The first thing to do is come up with a unique name for your business that stands out and clearly reflects what you do. Check with the Texas Secretary of State to make sure no one else is using it. You don’t want to go through all the trouble only to find out your perfect name has already been taken.

Your business structure will help determine the documents that need to be filed. For an LLC, this means submitting the Certificate of Formation to the Texas Secretary of State and paying the necessary fee. 

Next, apply for an Employer Identification Number (EIN) from the IRS. You’ll need it for many important tasks like opening a business bank account, hiring employees, and filing your taxes. It’s a straightforward process and can be done online.

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Step 3: Obtain the necessary licenses and permits

First up, you may need to grab a general business license. Texas does not require one at the state level, however you should check your city or county for specific requirements.

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Fees can vary depending on where you're setting up shop, so it's smart to check with your local government to get the lowdown on what you need.

Next, it’s time to tackle the Private Security License application through the Texas Department of Public Safety’s (DPS) Private Security Program.

The process involves:

• Submitting the right documents
• Paying the required fees
• Passing a background check

For the Private Security License, they’re going to ask for detailed information about your business and its owners. Be prepared to complete the necessary training programs that are approved by Texas DPS.

You’ll also need to show proof of liability insurance, which is a must-have for private security companies under Texas law. Make sure your insurance is current and covers what it needs to cover.

Handling Texas security licenses and permits might seem like a lot, but each step is taking you closer to running a legitimate and successful security guard company in Texas.

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Step 4: Secure financing

Starting a security guard company means dealing with some upfront costs.

Think about everything you'll need:

• Uniforms
• Communication devices
• Surveillance systems
• Patrol vehicles (if applicable)
• Licensing and permits
• Insurance
• Marketing and advertising
• Training programs
• Office supplies and equipment

Don’t forget office space and employee salaries, too!

There are many options to help you cover these costs. You can look into small business loans, grants, or even investors. Head to your local bank or credit union, or check out online lenders to see who offers the best deal for your needs.

Once you have your financing, it's important to keep a close eye on where your money is going. Set up a solid system to track expenses and revenue. You might find it helpful to hire an accountant, or you can use accounting software if you prefer a more hands-on approach.

Keeping your financial records straight will save you a lot of headaches down the line.

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Step 5: Set up your office and operations

You want a place that's easy to reach and has plenty of space for all your needs, from administration to operations. 

Once you’ve nailed down a location, it’s time to use the finances secured in the previous step to get equipped.

• Your team will need uniforms that comply with state regulations for security personnel.
• Communication devices are essential to keep everyone connected, whether they’re in the field or at the office.
• Patrol vehicles get your guards where they need to be quickly if you plan for your team to be mobile.

Investing in quality gear makes your services more reliable and helps build a solid reputation for your company.

To keep your operations running smoothly, consider investing in security management software. This tech can handle scheduling, incident reporting, and keeping in touch with clients.

Tools like Belfry are designed to streamline these tasks, making your life easier and your business more efficient. With the right setup, you’ll have more time to focus on growing your company and less time dealing with everyday hassles.

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Step 6: Hire and train security personnel

Getting your security guard company off the ground involves a lot of planning and effort. This step is all about finding and training the right candidates for the job.

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Advertise and recruit

Finding the right candidates starts with getting the word out. Advertise your job openings on online job boards, in local newspapers, and within industry networks. Social media platforms like LinkedIn and Facebook, as well as community bulletin boards, are also great ways to attract local talent.

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Conduct background checks

It’s important that you properly screen each potential employee individually. Running thorough background checks helps you hire trustworthy and reliable individuals, protecting your company's reputation and your clients' safety.

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Provide comprehensive training

Offer extensive training on security procedures, state regulations, and your company's policies. Make sure they are prepared to handle a range of security scenarios, from routine patrols to emergency situations.

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License requirements

Your security guards must obtain individual licenses through the Texas Department of Public Safety (DPS).

The Texas security license required depends on the specific duties and type of security work your guards will perform:

• Level II (Non-commissioned security officer): Basic requirement of all security guards in Texas.
• Level III (Commissioned security officer): For security guards who need to carry a firearm.
• Level IV (Personal protection officer - PPO): Personnel providing personal protection services, like bodyguards, requires this license.

The process involves:

• Completing the required training
• Submitting the application for the respective license
• Passing background checks
• Receiving the license, if approved

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Step 7: Market your security company

Create your brand, starting with a professional logo and a website that clearly showcases your services. These elements form the first impression potential clients will have, so make them count. Your brand should be clear and consistent, helping you attract and keep clients.

A website can be a powerful tool for visibility and credibility. Make sure it's user-friendly and includes all the essential information about your services.

Social media is another great marketing tool. Platforms like Facebook and LinkedIn can help you reach potential clients and keep them engaged with your business.

Network by attending industry events, joining local business organizations, and engaging with the community. Connections like these can lead to referrals and collaborations that help your business grow.

Referrals are gold in the security business, so provide excellent service to encourage word-of-mouth recommendations. Invest in advertising that targets your ideal clients, whether through online ads, local media, or industry publications.

Focusing on delivering quality service and keeping customers happy naturally builds a strong reputation. Happy clients are your best advocates, and a good reputation in the security industry can set you apart from competitors.

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Step 8: Understand and comply with labor laws

Getting a handle on Texas labor laws is key to running your security guard company without headaches. Dig into the rules about wages, overtime, and working hours. Staying on the right side of these laws helps you avoid legal trouble and keeps everything running as it should.

Wages and hours:

• Minimum wage is $7.25 per hour, aligning with federal standards.
• Overtime pay is 1.5 times the regular rate for hours over 40 per week.
• Breaks under 20 minutes are paid; meal breaks (30+ minutes) are unpaid if duty-free.

Payday law:

• Pay employees at least twice a month.
• Final paychecks must be given by the next scheduled payday upon termination.

Workplace safety:

• Follow OSHA standards for a safe work environment, including necessary training and safety equipment.

Employee benefits:

• Offering health insurance, retirement plans, and PTO can attract and retain employees.

Anti-discrimination laws:

• Comply with laws prohibiting discrimination based on race, color, religion, sex, national origin, age, disability, or genetic information.
• Implement anti-harassment policies and reporting processes.

Family and medical leave:

• Companies with 50+ employees must provide up to 12 weeks of unpaid, job-protected leave for eligible employees under FMLA.

Think about what benefits you'll offer your employees. Health insurance, retirement plans, and paid time off can make your company more attractive. Offering solid benefits helps you attract and keep the best people on your team.

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State-specific considerations for Texas

Starting and maintaining a security guard company in Texas comes with several expenses.

Setting up your business as an LLC or corporation in Texas will typically cost around $300. This fee covers the filing of necessary documents with the state.

Here’s a detailed breakdown to help you plan your budget for other licensing costs:\

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Private security company license costs

In Texas, a security guard company falls under the "Private Security Services Contractor" category. This means a security guard company will typically have to apply for a Class B license. A caveat to this would be if the company offers investigation services, which then would require a Class C license.

• Company license application fee: The initial fee to obtain a company license with subscription is $412. This license allows you to legally operate as a security services contractor in Texas.
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• Company license renewal fee: Renewing your company license every two years costs $412 unless you are late. Late renewal within 90 days will increase the cost by $200, whereas more than 90 days will incur a late fee of $400. It's important to keep track of this to avoid late fees and disruptions in your business.

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Individual security guard license costs

Fees for security guard licenses will vary depending on the license itself.

• Unarmed security guard license (Level II):some text
  • Initial application and renewal fee: $37, which includes the cost of the pocket card and subscription.
  • Late renewal fee: Add $15 past due within 90 days; $30 if past due more than 90 days.
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• Armed security guard license (Level III+):some text
  • Initial application and renewal fee: $57, covering the additional training and background checks needed for carrying a firearm.
  • Late renewal fee: Add $25 past due within 90 days; $50 if past due more than 90 days.
  • Requalification class: Every two years, armed guards must complete a requalification class, which costs between $50 and $100.

Depending on the company’s internal policies, the fees associated with each license may be paid by the company or out-of-pocket by the individual guard.

Some security companies cover all costs but may require the guard to pay upfront and have that payment reimbursed. It’s also possible that the costs are shared between the two, where it may be split by one covering the cost of the application and the other pays for the training.

It’s up to you to create company policies regarding who will be settling the fees.

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Minimum insurance coverage for your company

You must meet the state's insurance requirements to avoid legal complications.

Here are the specifics:

General Liability Insurance

1. Bodily injury and property damage: Your insurance policy must cover at least $100,000 for each occurrence.
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2. Personal injury: The policy must also include coverage of at least $50,000 for each occurrence of personal injury.
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3. Aggregate limit: There must be a total aggregate limit of $200,000 for all occurrences.

Maintaining proper insurance coverage helps protect your business from significant financial loss and ensures compliance with Texas regulations.

As the employer, it is your responsibility to ensure that all security personnel maintain a current license and complete ongoing training as required by Texas law.

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Start your security company off right with Belfry

Understanding how to start a security company in Texas is only the beginning. Setting yourself up for long-term success is just as important.

Belfry’s all-in-one software simplifies your operations, making it easy to manage your team, stay compliant with Texas regulations, and handle everything from scheduling to client management.

With Belfry, you can:

• Streamline scheduling: Easily create and manage employee schedules, ensuring that your team is always in the right place at the right time.
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• Automate reporting: Generate detailed reports automatically, helping you stay on top of operations and demonstrate compliance with state regulations.
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• Enhance client management: Keep track of client information, contracts, and communication in one centralized platform, making it simple to provide top-notch service.
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• Monitor in real-time: Monitor your security operations in real-time, allowing you to respond quickly to any incidents and maintain a high level of service.

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Schedule a Free Demo Today.