The private security services industry continues to grow in the U.S. as a whole, including Washington. As a result, it makes sense that more and more entrepreneurs are wondering how to start a security company in Washington state. 

This guide will cover the essentials, including:

• Why Washington is ideal for security businesses
• The steps to meet state licensing requirements
• How to structure and fund your business
• Hiring and marketing strategies for success

‍

Why Washington is a great place to start a security company

Washington is an ideal location to launch a security company, thanks to its thriving urban centers, strong economic growth, and increasing demand for physical services. 

The state's robust economy and rising concerns about crime make security services essential across various sectors, including healthcare, government, and tech.

According to the Washington State Employment Security Department (ESD), employment projections for security-related occupations are also steadily rising. This growth aligns with national trends, where the U.S. security services market is expected to grow at a rate of 6.2% annually through 2030. 

Washington’s local demand for private security and electronic surveillance systems further supports a flourishing environment for new security businesses. Entrepreneurs entering this space can tap into a growing market that values advanced security solutions and protection services.

‍

How to start a security company in Washington state

We’ll now share a 6-step guide with all you need to know about how to start a security company in Washington state:

Step 1: Understand Washington state licensing requirements

Before you hire your first guard or sign a contract, you have to make sure you're operating legally. In Washington, this means obtaining the proper license from the Department of Licensing (DOL). Here's a simplified guide to help you through this initial step:

‍

A. Meet the requirements

To get a security license for your business in Washington:

• You must be at least 21 years old.
• You must be a U.S. citizen or a resident alien.
• Your company’s qualifying agent must have at least three years of experience as a manager, supervisor, or administrator in the private security business or a related field.
• Your business must be physically located within Washington.
• You must also have a valid business license from the Department of Revenue.

‍

B. Gather the necessary documents

One of the most important documents is a certificate of liability insurance. This shows that you're financially prepared to handle potential incidents. You'll need a minimum of $25,000 coverage for bodily injury and $25,000 for property damage, though higher coverage may be required for certain services like armed security.

In addition to liability insurance, you'll also need to secure worker's compensation insurance. This type of insurance protects your employees in case they get injured on the job.

‍

C. Submit fingerprints

All company owners, partners, or qualifying agents must undergo state and national background checks. This involves submitting fingerprints through IdentoGO, the state's designated vendor. There's a fee associated with this service.

‍

D. Complete your application

You can apply online through SecureAccess Washington (SAW) or by mail. Applying online is generally quicker. 

If you choose to mail your application, you'll need to send the completed Private Security Guard Company License Application form, your certificate of liability insurance, and a check or money order for the application fee to the Department of Licensing.

Note: To consult the direct source of all we’ve summarized here, you can always visit DOL’s official licensing website. 

‍

Step 2: Set up your business structure in Washington

Now that you have a grasp of the licensing requirements, it's time to build the framework for your security company. Here’s what you’ll need to do:

Choose your legal entity

Selecting the appropriate legal structure is a crucial decision that can impact your liability, taxation, and administrative burden. Here are the most common options for security companies in Washington:

• Sole proprietorship: This is the simplest structure, where the business is owned and run by one person, and there is no legal distinction between the owner and the business. It's easy to set up, but you'll be personally liable for any business debts or obligations.
  ‍
• Partnership: A partnership involves two or more individuals who agree to share in the profits or losses of a business. Like sole proprietorships, partners typically face personal liability.
  ‍
• Limited Liability Company (LLC): An LLC combines the simplicity of a partnership with the limited liability of a corporation. It provides some protection from personal liability for business debts.
  ‍
• Corporation: A corporation is a more complex structure that creates a separate legal entity from its owners. This offers the strongest protection from personal liability, but it also comes with more stringent regulatory requirements.

Tip: Consulting with a legal professional or business advisor can provide valuable guidance in making this decision.

‍

Register with the Washington Secretary of State

Once you've chosen your legal entity, you'll need to register your security company with the Washington Secretary of State. Here's a quick guide to help you through this process:

1. Choose a business name: Make sure your desired name is available and complies with Washington State naming guidelines.
   ‍
2. File the necessary documents: Depending on your chosen business structure, you'll need to file specific documents, such as Articles of Incorporation for a corporation or a Certificate of Formation for an LLC.
   ‍
3. Pay the filing fee: There's a fee associated with registering your business, which varies depending on the structure you've chosen.
   ‍
4. Get your UBI number: After registering, you'll receive a Unified Business Identifier (UBI) number, which various state agencies use to identify your business.

‍

Secure your EIN from the IRS

You'll need to get an Employer Identification Number (EIN) from the IRS if you plan to hire employees or operate as a corporation or partnership.

This is essentially a social security number for your business that is used for tax purposes. You can apply for an EIN online through the IRS website.

‍

Get your business bank accounts and taxes sorted

Opening a separate bank account for your business is essential to keep your personal and business finances distinct. Doing so simplifies accounting and also helps maintain your liability protection if you've formed an LLC or corporation.

Remember: You'll need to register with the Washington State Department of Revenue and the IRS for various state and federal taxes, including sales tax, unemployment tax, and income tax. The specific tax requirements will depend on your business structure and activities.

‍

Step 3: Create a budget and secure startup capital

Before you begin operations, it's crucial to develop a comprehensive budget that outlines your startup costs and explore options for securing the necessary capital. Here’s a breakdown of what this process involves: 

Understanding startup costs

Several key expenses contribute to the initial investment required to get your security company off the ground. These may include:

• Licensing and application fees: As we discussed earlier, obtaining the necessary licenses and permits from the Department of Licensing involves paying fees.
  ‍
• Insurance premiums: Securing liability insurance and worker's compensation insurance are essential and will require upfront premium payments.
  ‍
• Equipment costs: Depending on the services you offer, you may need to invest in equipment such as uniforms, firearms (if providing armed security services), communication devices, and security systems.
  ‍
• Office space and supplies: If you plan to have a physical office, you'll need to factor in rent, utilities, and office supplies.
  ‍
• Marketing and advertising: Promoting your services and attracting clients will require an investment in marketing and advertising efforts.
  ‍
• Initial payroll and employee training: Hiring and training qualified security personnel will be a significant ongoing expense.

For a more detailed breakdown of these costs, be sure to check out our companion article, which provides a comprehensive overview of the financial aspects of starting a security company.

‍

Finding funding

Once you have a clear picture of your startup costs, it's time to explore funding options. Several avenues are available to secure the capital needed to launch your security company. You can choose from:

• Business loans: Traditional bank loans or loans from the Small Business Administration (SBA) can provide the necessary funds to get started. Be prepared to present a strong business plan and financial projections to lenders.
  ‍
• Investors: Seeking investment from angel investors or venture capitalists can be an option, especially if you have a unique business model or growth potential.
  ‍
• Self-funding: If you have personal savings or assets you can leverage, self-funding can be a viable option. This allows you to retain full control of your company but may require careful financial planning.

‍

Step 4: Hire and train security guards in Washington 

When it comes to your security guard employees, Washington has specific requirements to maintain high standards within the industry. All security guards in Washington must:

• Be at least 18 years old
  ‍
• Be a U.S. citizen or resident alien
  ‍
• Complete pre-assignment training: This is an eight-hour course covering essential topics like basic security procedures, legal powers and limitations, and emergency response.
  ‍
• Complete post-assignment training: This involves another eight hours of training, going deeper into areas such as access control, incident reporting, and evacuation procedures.
  ‍
• Undergo annual refresher training: To keep skills sharp and knowledge updated, security guards must complete four hours of refresher training every year.

Note: For an in-depth breakdown of the finer details, feel free to consult Washington state’s legislature on training requirements for security guards. 

‍

Belfry's role in managing your workforce

With Belfry, the all-in-one security management platform, you can streamline many of your administrative tasks. Easily track employee hours, monitor overtime, and automate scheduling and payroll. 

Step 5: Develop marketing and sales strategies

Your brand encapsulates the overall impression your company makes on potential clients. Here's how to establish a professional and trustworthy brand:

• Website: A well-designed website serves as your online storefront, providing information about your services, highlighting your expertise, and showcasing client testimonials.
  ‍
• Professional branding: Create a professional logo and consistent branding that reflects the values of your security business, such as trust and reliability.
  ‍
• Online presence: Establish a presence on relevant social media platforms like LinkedIn to connect with potential clients and share valuable content.
  ‍
• SEO and content marketing: Optimize your website and online content with relevant keywords to improve your search engine rankings and attract organic traffic. Consider creating blog posts related to security topics to position yourself as an industry expert.  
  ‍
• Networking: Attend industry events, join business organizations, and actively network with potential clients in various industries to build relationships and generate leads.

‍

Leveraging local marketing tools

While online marketing is essential, do not underestimate the power of local marketing efforts:

• Local directories: List your business in online directories specific to your service area using platforms like Google My Business.
  ‍
• Referrals: Encourage satisfied clients to refer your services to their network. Offer incentives or discounts for successful referrals to motivate word-of-mouth marketing.
  ‍
• Community engagement: Participate in local events and offer free security assessments to businesses in high-crime areas to showcase your expertise and build trust with potential clients.
  ‍

Step 6: Streamline operations and compliance with Belfry

As the final step in our guide on how to start a security company in Washington state, consider implementing a security management platform like Belfry. 

Belfry is an all-in-one solution that can simplify your operations, reduce administrative burden, and help you stay compliant with Washington's licensing and labor laws.

Here's how Belfry helps streamline your operations and compliance:

• Automated scheduling and tracking: Belfry automates shift scheduling, officer assignments, and real-time tracking, ensuring you always have the right personnel in the right place at the right time.
  ‍
• Simplified payroll and invoicing: Belfry helps handle tax filings and compliance, including certified payroll for government contracts. Plus, it automates invoicing and payment processing, improving your cash flow.
  ‍
• Effortless compliance: Belfry assists in tracking licenses, certifications, and compliance requirements for each guard, minimizing the risk of penalties and helping you so your company operates legally.
  ‍
• Empowered officers: Provide your officers with a user-friendly mobile app to manage schedules, clock in/out, report incidents, and conduct patrols efficiently. This boosts accountability and improves communication.
  ‍
• More transparency for clients: With Belfry's client portal, your clients can access real-time reports, monitor on-site activities, and interact with security officers, enhancing transparency and keeping clients happy. 

‍

By integrating Belfry into your operations, you can free up valuable time and resources, allowing you to focus on providing top-notch security services and scaling.

Schedule a Free Demo Today.