What Licenses Do You Need To Start a Security Company?
Questioning, “What licenses do I need to start a security company?” Our detailed guide covers the permits and steps to get your business legally compliant.
Licenses are a fundamental aspect of starting a security company. They not only legitimize your business but also build trust with clients and keep you on the right side of state regulations.
This then begs the question, “What licenses do I need to start a security company?”
Starting a security company involves navigating essential licensing requirements. Here’s a detailed guide to help you understand the security company licenses required and how to obtain them.
General business license
A general business license is like your company’s official permission slip to do business. It’s the basic permit every business needs to operate legally within a specific geographical area, such as a city or state.
Why it’s needed
Required security company licenses may vary from state to state, but a general business license is non-negotiable. Having a general business license means your security company is recognized by the local government as a legitimate business.
Local laws and regulations are there to protect both businesses and customers, so by having this license, you’re committing to operating within those guidelines. It’s a way for the government to keep track of businesses for tax purposes, zoning laws, and public safety.
In some areas, not having a general business license can lead to fines, legal troubles, and even forced closure of your business. Getting this license is a fundamental step in building a reputable and legally compliant security company.
How to get it
Applying for a general business license is pretty straightforward.
Here’s what you typically need to do:
- Fill out an application form: You’ll need to provide details about your business, such as the name, address, and type of services you offer.
- Pay a fee: Fees can vary widely depending on location and business type, but will usually range from $25 to $550. This is often an annual fee, so you’ll need to renew it every year.
- Submit your application: Depending on where you're setting up your business, you might need to submit your application to your city or county government, or sometimes to the state.
The process might vary slightly depending on your location, so it’s a good idea to check with your local government office or their website for specific instructions. Once you’ve got this license, you’re one step closer to legally running your security company.
Private security license
A private security license is a specialized license that you need if you're planning to offer security services. It's your official badge of credibility, showing you're legit and ready to provide top-notch security.
Why it’s needed
A private security business license — in some states referred to as a Private Patrol Operator license — is your gateway to legitimacy in the security industry. Meeting industry standards and regulatory requirements shows that your business is competent and reliable.
For security companies in all states, a private security license is a must-have. Each state does have its own rules for obtaining this license so you’ll want to do a bit of homework to uncover what is needed where you plan to set up shop.
How to get it
Here’s the steps involved in securing a private security business license:
- Submit an application: The first step is to fill out an application, which should be available on your state’s licensing board website.
- Background check: Next, you'll need to go through a background check. The state wants to verify that everyone in your business, especially those in security roles, has a clean record.
- Proof of qualifications: You’ll need to show that you or your team have the necessary qualifications. This could be certificates from security training programs or documents proving your experience in the field.
- Insurance: Many states require you to have insurance to cover any potential liabilities, such as general liability insurance and worker’s compensation insurance.
- Additional requirements: Depending on where you are, there might be extra steps. Each state has its own set of rules. Spend some time on your state’s licensing board website or give them a call to figure out everything you’ll need beforehand.
Security guard registration
Security guard registration is the process of obtaining individual licenses for your employees who will be working as security guards.
This step ensures your team is fully prepared and officially recognized to do their job.
Why is it necessary?
Security guard registration acts as your company's seal of approval. It shows that your security personnel meet the minimum training and background check requirements.
Security guards do not always need to be registered prior to being hired. However, in most states, security guards must be registered before they can legally begin work as a security guard. This is something that each security guard will generally be required to do on their own.
Companies can assist with the registration process by providing information on the required training and assisting with the paperwork. A company can also cover the costs of the registration fees and required training as part of the hiring package.
The company’s role
A security company can make it easier for the security guard to meet all legal requirements associated with the registration. States have their own set of rules regarding security guard registration and training. Some might require ongoing training, periodic re-registration, or additional checks.
Once a security guard is legally registered, they can begin working for the company. A security company can choose to provide additional on-the-job training specific to their operations and client needs. Staying compliant with local regulations makes certain your company remains in good standing and avoids any legal hiccups.
Firearm permit
A firearm permit is a legal approval that lets security personnel carry and use firearms while on duty. Depending on the state, it's a must-have for any security guard who will be armed as part of their job responsibilities.
Why it’s needed
A firearm permit is a must if your security guards will be carrying guns on the job. It’s proof that your armed guards have received proper training and are legally authorized to carry firearms.
When your team has these permits, you’re putting everyone’s safety first — your guards, your clients, and the general public. Plus, it helps you steer clear of any legal headaches down the road.
How to get it
Obtaining a firearm permit involves a few key steps. Here’s a detailed breakdown of the process for security guards:
- Complete a firearms training course: Guards will need to attend a certified firearms training course. Learning to shoot is just one part; the course covers firearm safety, proper handling, and the legal responsibilities of carrying a gun.
Expect a mix of classroom instruction and hands-on training at a shooting range. The length of these courses can vary, but they generally last several days and include both theoretical and practical components.
Topics covered include: Safe storage, maintenance, marksmanship, judgmental shooting, and use-of-force laws.
- Pass a background check: This step confirms that your guards have no criminal history that would prevent them from legally carrying a firearm.
The process typically involves submitting fingerprints and personal information to your state’s law enforcement agency or the FBI. Background checks can take anywhere from a few days to a few weeks, depending on your state’s process.
- Apply through the state’s licensing authority: Each state has a specific agency that handles firearm permits, which could be the state police, a department of public safety, or another relevant authority.
Guards will need to complete application forms, provide proof of completed training, and submit background check results.
Double-check all paperwork before submission to avoid delays. Some states might allow you to apply online, which can speed up the process.
- Pay the fee: Fees can vary widely from state to state so it’s important to check in with local requirements. Some states might charge more, especially if additional processing is required.
Keep in mind that these permits usually need to be renewed periodically, which can involve additional fees and perhaps refresher training.
A security company does not need a firearm permit itself, but it must verify that all armed guards have the necessary permits and training. This responsibility includes checking that each guard has completed the required steps to legally carry a firearm.
Companies may need to obtain additional liability insurance to cover the risks associated with armed guards. Such coverage protects the company from potential legal and financial repercussions related to the use of firearms by its employees.
Specialized licenses
A security company may require more specialized licenses depending on the services they offer.
Alarm system installer license
Security companies that plan to install and maintain alarm systems for their clients will need an alarm system installer license.
Having an alarm system installer license means the alarm systems you set up are installed correctly and function as they should.
Clients will have peace of mind knowing that their security system is dependable and professionally handled.
The application process involves:
- Enrolling in a comprehensive training program that covers everything from basic installation techniques to advanced troubleshooting.
- Taking a certification exam upon the completion of training that is designed to test your knowledge and skills in alarm system installation and maintenance.
- Submitting proof of training and exam results along with an application form and the required fees to the proper licensing authority to obtain your alarm system installer license.
These are regarded as the typical steps involved in securing the license. Regardless, it’s always best to check the specific requirements for the state or local area where you plan to operate to guarantee compliance.
Private investigator agency license
Planning to offer investigative services? Your company will need a private investigator agency license to legally operate and each investigator will be required to obtain their own private investigator license. A private investigator agency license confirms that your investigative services meet legal standards, protecting your clients and maintaining the integrity of your investigations.
A guide to the process:
- Check with your state’s licensing board or Department of Public Safety for help with specific criteria and the application process.
- Criteria may require experience in investigative work or law enforcement and a thorough background check, which may include fingerprinting, to weed out any possible disqualifying criminal history.
- Some states could require specific training programs or educational qualifications that provide in-depth coverage of investigative techniques, legal constraints, and ethical considerations.
- Your business must already be properly formed and registered with the state.
- A company owner must be able to prove, with documentation, their experience in investigative or law enforcement (if required by the state).
- Your company must have already obtained the necessary liability insurance and surety bonds required by the state.
You’ll need to fill out an application, submit it along with the associated fees, await you and your company’s examination, should one be required, and then wait for approval.
State-specific requirements
Licensing requirements can vary significantly across states.
Here are examples from a few states:
California
License: Private Patrol Operator (PPO) license
Details: To get started in California, the company will need a Private Patrol Operator (PPO) license. The company owner will go through a thorough background check to make sure there are no issues in your past. They also need to show at least two years of relevant experience in the security field, like previous work as a security guard or in a related role.
New York
License: Watch, Guard, or Patrol Agency license
Details: New York has its own set of rules for starting a security company. The company will need a Watch, Guard, or Patrol Agency license. Part of the process involves the owner submitting fingerprints for a background check. They will also need to provide proof of insurance to protect their business and clients, covering any potential liabilities.
Texas
Requirements: Criminal background check, fingerprinting, licensing exam
Details: In Texas, the licensing process is quite comprehensive. First, employees go through a criminal background check. Then, they’ll need to submit their fingerprints to the state. Some employees, such as managers, may be required to pass specific licensing exams that test their knowledge of security practices and state regulations.
Illinois
License: Private detective, private alarm, private security, and Locksmith Act (PERC) license
Details: In Illinois, a Private Detective, Private Alarm, Private Security, or Locksmith (PERC) license is required to start a security company. The owner will have to pass a background check and demonstrate relevant experience in the security field. Key personnel may need to complete specific training and pass an exam to verify they possess the necessary skills and knowledge to run a security business.
Massachusetts
License: License from the Department of State Police
Details: In Massachusetts, a license from the Department of State Police is necessary. The process includes a detailed background check that examines criminal history and other relevant information. Your company must also provide proof of liability insurance, demonstrating that you're prepared to handle any potential issues that might come up while running your business.
New Jersey
License: Security Officer Registration Act (SORA) license
Details: To operate in New Jersey requires a SORA license. The process includes a 24-hour training program for individual security officers that covers state regulations and basic security practices. Additionally, they’ll undergo a background check to confirm they’re fit to provide security services.
Ensure compliance is met with Belfry
Remember, the licenses you need to start a security company will vary depending on the location and the services you expect to provide.
Keeping up with all the rules and requirements to run your security company will ensure you avoid bigger problems later.
Belfry’s all-in-one software simplifies licensing, manages background checks, and tracks insurance requirements, letting you focus on what you do best — protecting your clients.
Belfry’s features include:
- Automated license management: Our software tracks all your licensing requirements and renewal dates, so you don't have to worry about missing deadlines.
- Mobile app: With Belfry, your officers receive an easy-to-use mobile app where they can manage schedules, clock in/out, and report incidents in real time.
- Compliance tracking: Our platform tracks important information for you, including necessary licenses to keep you up-to-date on compliance.
- Training and certification management: Belfry provides an easy way to track training progress and certification statuses for your employees, making sure they meet the necessary qualifications.