7+ Licenses and Permits You May Need to Open a Security Guard Service

In today's world, security has become a top priority for businesses and individuals alike. As the demand for professional security services continues to grow, entrepreneurs are seizing the opportunity to establish their own security guard companies. However, navigating the complex world of licenses and permits can be overwhelming for those looking to enter this highly regulated industry. To open a security guard service, there are several essential licenses and permits that must be obtained to ensure compliance with local, state, and federal regulations. In this article, we will explore the key licenses and permits you may need to acquire before launching your security guard business, ensuring that you can protect your clients with confidence and operate within the boundaries of the law.

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Written by:
Newfoundr
Updated on:
April 17, 2023
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Table of Contents:

Our List of 7+ Licenses and Permits You May Need to Open a Security Guard Service:

Below is a list of possible Security Guard Service licenses and permits needed. Please note it will vary state by state, so please do extensive research before starting.

1. Business License.

A business license is a legal document that authorizes a person or company to engage in a certain type of business activity. It is required by most local, state, and federal governments to ensure that businesses operate legally and comply with regulations.To start a security guard service, you will likely need a business license to operate legally. This license will demonstrate to potential clients and authorities that your company is legitimate and authorized to provide security services. It may also be required to obtain insurance, permits, and other necessary documents to operate your business. Additionally, having a business license can protect you from legal liabilities and penalties.

Check if your state requires a Business License.

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2. Security Guard Agency License.

A Security Guard Agency License is a certification granted by the state government to an individual or a company that authorizes them to provide security guard services to clients. It is necessary to obtain this license to start a security guard service as it ensures that the agency is legally authorized to provide security services and is compliant with state laws and regulations. It also ensures that the agency has met the necessary requirements such as background checks, training, insurance, and bonding. Without a Security Guard Agency License, the agency may face legal consequences and may not be able to operate legally.

Check if your state requires a Security Guard Agency License.

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3. Employer Identification Number (EIN).

An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax purposes. It is also known as a Federal Tax Identification Number.You might need an EIN to start a Security Guard Service because:1. To open a business bank account: Banks usually require an EIN to open a business bank account.2. To hire employees: If you plan to hire employees for your Security Guard Service, you will need an EIN to report taxes and other employment-related information to the IRS.3. To file taxes: You will need an EIN to file your business taxes with the IRS.4. To apply for licenses and permits: Some states and localities require an EIN to apply for business licenses and permits.In short, an EIN is a crucial requirement for any business entity, including a Security Guard Service, to conduct its operations legally and efficiently.

Check if your state requires a Employer Identification Number (EIN).

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4. Workers' Compensation Insurance.

Workers' compensation insurance is a type of insurance that provides benefits to employees who suffer work-related injuries or illnesses. It covers medical expenses, lost wages, and rehabilitation costs for injured employees. If you are starting a security guard service, you will likely have employees who are at risk of injury or illness while on the job. For example, they may be involved in physical altercations, slip and fall accidents, or suffer from repetitive stress injuries. Workers' compensation insurance is important because it provides financial protection for both you and your employees in the event of a workplace injury or illness. It can help cover the costs of medical bills and lost wages, and can also protect you from potential lawsuits. Additionally, in most states, workers' compensation insurance is required by law for businesses with employees.

Check if your state requires a Workers' Compensation Insurance.

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5. General Liability Insurance.

General Liability Insurance is a type of insurance that provides coverage for businesses against claims of bodily injury, property damage, and other types of liability. It is designed to protect businesses from financial losses in the event of a lawsuit or other legal action.As a security guard service, you may need General Liability Insurance to protect your business from claims of bodily injury or property damage that may occur while on the job. For example, if one of your security guards accidentally injures someone while on duty, your business could be held liable for the damages. General Liability Insurance can help cover the costs of legal fees, settlements, and other expenses associated with such claims. It is also often required by clients or contracts before they will hire your security guard service.

Check if your state requires a General Liability Insurance.

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6. State Tax Registration.

State Tax Registration is the process of obtaining a tax identification number from the state government for a business entity. This number is used to track the business's tax obligations and to ensure that the business is complying with state tax laws.A Security Guard Service may need to obtain State Tax Registration in order to operate legally and to pay the appropriate taxes to the state government. This registration may also be required to obtain necessary licenses and permits to operate the business. Failure to register for state taxes can result in penalties, fines, and legal issues for the business.

Check if your state requires a State Tax Registration.

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7. Local Permits.

Local permits are licenses issued by local authorities that allow businesses to operate within a specific jurisdiction. In the case of starting a security guard service, local permits may be required for a variety of reasons, including:1. Business License: Most cities and counties require businesses to obtain a business license before they can operate. This license ensures that the business complies with local laws and regulations.2. Security Guard License: In some states, security guards must be licensed to work. This license ensures that the guard has completed the necessary training and background checks to work in the security industry.3. Alarm Permit: If the security guard service will be monitoring alarms, the business may need to obtain an alarm permit from the local police department or fire department.4. Zoning Permit: Some cities and counties have zoning regulations that restrict certain types of businesses from operating in certain areas. A zoning permit ensures that the business is operating in a location that is zoned for its type of business.Overall, obtaining local permits is an important step in starting a security guard service to ensure that the business is operating legally and in compliance with local regulations.

Check if your state requires a Local Permits.

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Frequently asked questions

Everything you need to know about the business licenses.

What is the best business formation license for a Security Guard Service?

The best business formation license for a Security Guard Service would typically be a Limited Liability Company (LLC) or a Corporation (Inc.). Both of these structures provide limited liability protection for the business owner(s) and are suitable for a security guard service. An LLC is often easier to set up and manage, with more flexibility in terms of taxation and less formalities compared to a Corporation. However, a Corporation may be more suitable if the business plans to raise capital from investors or issue stock. It is recommended to consult with a business attorney or accountant to determine the best option for your specific situation. Additionally, you will need to obtain any necessary security industry licenses and permits required by your state or local government.

Is it required to have a general business license for a Security Guard Service?

Requirements for a general business license for a Security Guard Service vary depending on the location and jurisdiction. In many places, a specific security guard service license is required, in addition to a general business license. It is essential to check with your local government or licensing authority to determine the specific requirements for your area.
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