How to Start a Security Guard Company: Complete 2025 Guide

Starting a security guard company requires more than just hiring guards. You need licenses, insurance, contracts, and systems to run a professional operation. This guide walks through the practical steps to launch your security business.

Step 1: Research Your State Requirements

Security guard licensing is regulated at the state level, and requirements vary dramatically. Before anything else, research your state's requirements for:

• Company licensing: Most states require a separate license to operate a security guard company (not just individual guard licenses)
• Owner qualifications: Many states require owners to have security experience, pass background checks, or hold manager-level licenses
• Insurance minimums: State-mandated liability insurance minimums range from $500K to $2M
• Training requirements: Some states require you to provide specific training programs for your guards

Step 2: Form Your Business Entity

Most security companies operate as LLCs or corporations for liability protection. Steps include:

1. Choose a business name and verify availability
2. File formation documents with your state
3. Obtain an EIN from the IRS
4. Open a business bank account
5. Set up accounting systems

Consider consulting with a business attorney, especially regarding liability protection structures. Security is a high-liability industry.

Step 3: Obtain Insurance

Security guard companies need multiple types of insurance:

• General liability: Covers bodily injury and property damage ($1-2M minimum recommended)
• Professional liability (E&O): Covers negligence claims related to security services
• Workers' compensation: Required in most states for employees
• Commercial auto: If guards use vehicles for patrol
• Umbrella policy: Additional coverage above primary policies

Work with an insurance broker who specializes in security industry coverage. Standard business policies often have security exclusions.

Step 4: Develop Your Service Offerings

Define what services you'll offer initially:

• Standing guard / access control
• Mobile patrol
• Event security
• Executive protection
• Alarm response
• Concierge / front desk security

Start with services you have experience delivering. Expanding into new service lines before mastering your core offering is a common startup mistake.

Step 5: Create Operational Documents

You need documented processes before your first client:

• Service contracts: Client agreements covering scope, rates, liability limitations, termination terms
• Employment documents: Guard employment agreements, NDAs, policies and procedures
• Post orders: Site-specific instructions template
• Incident reports: Standardized incident documentation forms
• Training curriculum: New hire training program

Step 6: Set Up Operations Systems

Even a small operation needs systems for:

• Scheduling and dispatch
• Time and attendance tracking
• Payroll processing
• Client communication and reporting
• Incident documentation

Guard management software can handle most of these from day one, but you can start with spreadsheets and basic tools if budget is tight. Just plan to upgrade as you grow—manual systems don't scale.

Step 7: Recruit Your First Guards

Your guards are your product. Recruitment should include:

1. Job postings on security-specific job boards
2. Application screening for basic qualifications
3. Background check verification
4. In-person interviews assessing professionalism and reliability
5. License verification (if state requires guard licenses)
6. Drug screening (if required by clients or your policy)

Step 8: Find Your First Clients

Common approaches for new security companies:

• Subcontracting: Work under larger security companies to build experience and references
• Direct outreach: Contact property managers, business owners, HOAs, construction companies
• Networking: Join local business associations, security industry groups
• Bid on contracts: Monitor government and corporate RFPs

Your first clients are the hardest to win. Be prepared to compete on price initially while you build your reputation and references.

Estimated Startup Costs