If you’re wondering what licenses you need to start a security company, the short answer is: It depends on your state, your services, and even your city. 

Most states require a security company license at the state level before you can operate. In places like California, Texas, and Florida, you’ll need a special license just to open your doors, even if you’re not offering guards right away. There are even some states that don’t require a license at all.

In this article, we’ll cover: 

• The core licenses needed to legally launch a security business
• State vs. local licensing differences
• How to meet insurance, training, and legal requirements before launch

Let’s start by discussing whether you need licenses for your company.

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Do I need a license to start a security company?

If you're figuring out how to start a private security company, one of the first things you’ll learn is that you’ll probably need some form of official license. Most states require a security business license before you can legally advertise, sign contracts, or hire guards, even if you’re just running a small, local operation.

There are two levels of licensing you’ll want to think about:

• Licensing to run your business: This includes your security business license (state-required in most areas) and any local permits to operate commercially.
  
  
• Licensing to perform security services: If you or your employees will physically patrol, guard, or protect people or property, you’ll also need individual certifications like a guard card or firearm permit.

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Does every state require a license for a security company?

If you're looking into how to start a security guard company, it’s important to know that some states make you complete licensing requirements before you can even advertise or sign contracts. 

States like California, Texas, Florida, New York, and Illinois require a full security business license before you can legally operate, even if you don’t plan to put guards in the field right away. These states often ask for things like qualifying agent certifications, proof of insurance, and sometimes even years of prior security experience.

On the other hand, states like Idaho, Kentucky, and Alabama don’t require a special company license just to start a security business. Instead, you can usually register a basic business entity (like an LLC) and operate as a consultant or administrative company. However, the minute you start providing guards, patrols, or physical protection services, you’ll need the appropriate individual and agency licenses.

Because licensing rules can change, it’s a good idea to check your state’s Department of Public Safety (DPS) or licensing board before filing any paperwork. Many states also have local city or county rules that could add extra requirements, like special operating permits or alarm system registrations.

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What happens if you operate without a license?

Running a security company without the right licenses might seem like a shortcut, but the fallout can be serious if you get caught operating without one.

Here’s what you could be dealing with:

• Fines and shutdowns: States don’t take this lightly. If you’re caught operating without a valid license, you could face steep fines, and in many cases, your business can be shut down immediately.
  
  
• Disqualification from future licensing: Some states won’t let you apply again or will put you through a much harder process if you’ve tried to cut corners before.
  
  
• Lawsuits and liability: If something goes wrong on a job, and you’re not properly licensed or insured, you could be held personally responsible. That means court costs, legal fees, and damage to your reputation.
  
  
• Lost client trust: Word travels fast, especially in industries built on trust. Clients (and even potential hires) most likely won’t take you seriously if they find out you skipped licensing.

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What licenses do I need to start a security company?

If you’re planning on starting a security company, you’ll usually need three main licenses:

1. Security company license

Most states require a security company license to legally offer services. Depending on where you set up, it might be called a Private Patrol Operator (PPO) license or a Security Agency License. 

You’ll usually need a qualifying agent with professional security experience to apply. A qualifying agent is the licensed security professional tied to your company’s license. They meet the state’s experience and training requirements and make your business eligible to offer security services legally.

2. Guard card or qualifying agent license

If you plan to offer security guards as part of your services, you’ll need individual certifications like a guard card. In many states, the qualifying agent must also have years of field experience to represent the company legally.

3. Business license or commercial activity permit

Every company needs a general business license to operate, file taxes, and open business accounts. Some areas also require a city business license or a county permit alongside your security licenses.

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Security business license requirements by state: what to know

When you’re learning how to open a security company, it’s important to know that licensing rules can look very different depending on where you are set up. 

Here’s a quick look at how a few major states handle it:

• California: You’ll need a Private Patrol Operator (PPO) license through the Bureau of Security and Investigative Services (BSIS). California requires your qualifying agent to have at least one year of full-time paid security experience and to pass a licensing exam.
  
  
• Texas: Security companies must get licensed through the Department of Public Safety, Private Security Bureau (PSB). A manager-level qualifying agent must pass exams and meet strict experience requirements.
  
  
• Florida: You’ll need a Class "B" Security Agency License issued by the Florida Department of Agriculture and Consumer Services (FDACS). If you’re offering armed services, additional licenses apply
  
  
• New York: Security companies must register through the Division of Licensing Services. New York has strict rules on insurance coverage and requires background checks for business owners and qualifying agents.
  
  
• Illinois: A Private Security Contractor Agency License or a Private Detective Agency License is needed through the Department of Financial and Professional Regulation (IDFPR). You’ll also need a licensed qualifying agent who passes an exam and holds security experience. 

Tip: Even if your state doesn’t require a security business license right away, many cities and counties have their own local rules. It’s a good idea to double-check with your city hall or county clerk when setting up your business.

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What are some additional permits you may need?

Beyond your core business and security licenses, you might also need extra permits depending on the services you offer. Here are a few common ones to know about:

• Alarm system permit: If you plan to install, monitor, or respond to alarms, you may need an alarm permit from your city or county. Some states also regulate alarm companies directly. For example, in Texas, companies must register separately with the Department of Public Safety. Check with your state to make sure you are in compliance to avoid any issues.
  
  
• Vehicle patrol permit: Running marked patrol vehicles often requires a city-issued permit. In places like California, patrol cars must meet strict rules around lighting, paint, and insignias, so they’re clearly marked but not confused with law enforcement vehicles. Check the rules in your state so you can comply to avoid fines and other trouble.
  
  
• Firearm permit: If you plan to offer armed security services, both your company and your guards may need firearm permits. In Florida, for example, armed guards must complete a 28-hour training course and obtain a separate "G" license to carry a firearm while on duty. In other states, a class G license is also known as a Level 3 license.
  
  
• City or county business permits: Even with a state security license, many local governments require a separate business permit to operate legally. You might also need special permits for one-off jobs, like providing security at concerts, festivals, or large private events.

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Training and certification requirements

Training and certifications matter just as much as licenses. Here’s a breakdown of the most common requirements:

• Qualifying agent training: In most states, the qualifying agent needs a combination of professional experience and formal training. Some states also require the agent to complete a licensing course or pass a written exam to represent the business legally.
  
  
• Unarmed guard certification: If you employ unarmed guards, they’ll usually need to complete basic security training which includes topics like legal powers, observation techniques, report writing, and emergency response. This often includes 8 to 16 hours of classroom instruction, depending on the state you’re in.
  
  
• Armed guard certification: Armed guards have to meet stricter standards, including firearms training, range qualification, and additional classroom hours on use-of-force laws. In Florida, for example, armed guards must complete a state-approved 28-hour course to earn their Class G license (equivalent of a level 3 license).
  
  
• Specialized roles: If your company plans to offer executive protection, K9 units, or event security, some states may require specialized training or certifications for that. Even if the extra training is not required, clients may expect it, especially for higher-risk assignments.

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Security company insurance requirements in 2025

Getting your licenses is one thing, but insurance is what protects your business when something unexpected happens. Most states won’t even process your security license application without it. And sometimes, clients will want to see proof of your insurance before they even sign anything.

Here’s the coverage most security companies need to get off the ground:

• General liability insurance: This is usually non-negotiable. It covers things like property damage or injuries that happen while you’re on the job. A lot of states require at least $1 million in coverage per incident.
  
  
• Workers’ comp: If you’re hiring guards, you’ll probably need workers’ comp too. It helps cover medical bills and lost wages if someone gets hurt while working.
  
  
• Bonding: Some states want you to carry a surety bond. It’s kind of like a financial promise that your company will do what it says it will. If you mess up or break a contract, the bond helps cover your client’s losses.
  
  Beyond the basic coverage, there are other types of optional insurance you can get to cover yourself as well. Here is some other coverage that’s worth considering:

• Cyber liability: If you’re storing client data or running reports online, this can protect you if there’s a data breach.
  
  
• Errors and omissions (E&O): This helps if a client claims your team didn’t handle a situation the way they should have.

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Other steps you may need to take

Once you’ve got your licenses and insurance figured out, there are a few more legal boxes to check before your security company is officially ready to roll. Some of these are quick, others take a bit more paperwork, but they’re all important if you want to run a legit operation from day one. You may have to:

• Get an EIN: Your Employer Identification Number (EIN) is basically your company’s Social Security number. You’ll need it to open a business bank account, file taxes, and hire employees. You can get one for free from the IRS, it only takes a few minutes online.
  
  
• Choose your business structure: Most security companies go with an LLC or S-Corp. This affects how you’re taxed and how much personal liability you’re exposed to. It’s worth talking to an accountant or legal pro to figure out what’s right for you.
  
  
• Open a business bank account: Don’t mix business and personal money. A dedicated business account keeps your finances clean and helps build credibility with clients.
  
  
• Do background checks: Many states require owners and qualifying agents to pass a background check before a license is issued. Some also require fingerprinting. Even if your state doesn’t, clients may expect your team to have clean records, especially if they’ll be working at schools, hospitals, or high-security sites.

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Frequently asked questions 

What licenses do I need to open a security guard company?

You’ll typically need a state-issued security company license, a business license, and possibly local permits. If you’re hiring guards, they’ll also need guard cards or individual certifications depending on your state.

Can I start a security business without a guard card?

Yes, if you’re just managing the business side and not working security jobs yourself. But if you plan to work as a guard, you’ll need to get certified just like anyone you hire.

What is the difference between a business license and a guard license?

A business license allows you to legally operate your company. A guard license (or guard card) is what individual security officers need to legally work in the field.

Do I need a license to hire armed guards?

Yes. Most states require your company to be licensed for armed services, and each guard must have a firearm permit or specific armed certification.

What if I only offer consulting? Do I still need a license?

Maybe. In some states, if you’re not providing physical security services (like patrols or standing guards), you may not need a full security license. But you’ll still need a basic business license, and it’s smart to check with your state just to be safe.

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How Belfry can help you keep track of licensing

When you're figuring out what licenses you need to start a security company, it's easy to lose track of all the moving parts, like business licenses, guard certifications, insurance paperwork, permits, and more. Staying compliant takes organization, and that’s where Belfry can help.

Belfry is an all-in-one security guard software that puts everything in one place, making it easier to manage your team.

Here’s how:

• Track certifications: Prevent license compliance lapses by inputting your officers’ licenses and certifications. Belfry tracks renewal dates automatically and sends notifications when they’re coming up.
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• Easy scheduling: Minimize scheduling conflicts and avoid unmanned shifts thanks to Belfry’s automated scheduling features that assign shifts based on site requirements, officer certifications, and training.
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• Increased officer accountability: Belfry has GPS tracking and NFC-based guided tours to help you make sure your guards are adhering to their post orders. Geofencing alerts help alert you if a guard leaves their designated area.
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• Digital incident reporting: Goodbye pen and paper — guards can more easily keep you up-to-date by sending digital incident reports through the Belfry mobile app. They can even attach any evidence if needed.
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• Custom reporting: Need to create reports? Belfry allows you to design tailored reports, including incident documentation, patrol activities, and compliance status.
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• Simplified payroll: Belfry automates time and attendance tracking to make payroll easier. It also tracks overtime, labor expenses, and timesheets to make financial reporting a breeze.

Ready to see how Belfry can help you stay organized? Schedule a Free Belfry Demo today.