How to start a security guard company

The steps to launch a private security guard business: state company and guard licensing, insurance, pricing, hiring and training guards, 24/7 scheduling and proof-of-service records that keep clients.

⏱ 7 min readUpdated November 2026Security companies

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Found it: the post order binderWrite post orders for every site before the first shift, even for small contracts. Clear post orders protect the guard, the client and you when something goes wrong.
In shortTo start a security guard company, get the state license for operating a private security business where one is required, register your business, buy liability and workers’ compensation insurance, set up guard hiring with background checks and state guard registration and training, price your contracts so they cover wages, overtime and overhead, then build schedules that cover every post around the clock. Clients renew contracts when you can prove guards were on post and did their rounds, so attendance and patrol records are central to the business.
Key takeaways

Understand the market

Private security companies provide guards for offices, retail stores, construction sites, warehouses, residential communities, hospitals, events and many other settings. Services range from unarmed static guards at a front desk to mobile patrols, event security and armed protection. Most new companies start with unarmed services, which have lower licensing, insurance and training requirements, and build a reputation before expanding.

Contracts are usually won on reliability and price. A client’s biggest frustration is an empty post or a guard who did not do the rounds. Build the business around showing up, every shift, and proving it.

Step 1: licensing for the company

Most states regulate private security companies through a licensing board, the state police or a department of public safety. Requirements often include a qualifying manager with a set amount of experience, an exam, a background check for owners, proof of insurance or a bond and fees. A few states regulate at the city or county level instead. Check the requirements in each state where you will operate before you sign any contract.

You also need the usual business setup: an LLC or corporation, EIN, local business license and employer registrations for withholding and unemployment insurance.

Step 2: guard licensing and training

In many states, each guard must be individually registered or licensed before working, often after a background check, fingerprinting and a set number of training hours. Some states require additional training within a period after hire and annual refresher training. Armed guards need separate firearms permits and training. California’s guard registration, often called a guard card, is a well-known example with required training hours before and after assignment.

Track every guard’s license, training and expiration dates. A guard working with an expired license can put the contract and your company license at risk. EZTime’s digital employee file stores documents with expiry reminders.

State rules: two examples

Licensing rules are set by each state. Two examples show how specific they get:

These are single-state examples, not national rules. Look up your own state’s licensing agency before you price your first contract, because the qualifying-manager and insurance rules can change your startup budget.

Step 3: insurance

Step 4: price your contracts

Security contracts are usually billed per guard hour. The bill rate must cover the guard’s wage, payroll taxes, workers’ compensation, uniforms, training, supervision, overhead and profit. Two costs often catch new companies out:

Our labor burden calculator estimates the full cost of an hour of labor, and the overtime calculator shows the impact of extra hours.

Step 5: hire and keep good guards

Guard turnover is a major cost in the security industry. Each replacement means recruiting, background checks, licensing and training before the new guard can work. To keep good guards:

Step 6: schedule 24/7 coverage

Covering posts around the clock is a scheduling puzzle. Common patterns include 8-hour shifts with three guards per day, 12-hour shifts with rotating crews and patterns such as the Pitman, DuPont and continental schedules. Each affects overtime, rest and guard fatigue differently. Our 24-hour shift schedule guide compares the options.

Example coverage for one 24/7 post
Shift length Shifts per day Weekly hours to cover Guards needed at 40 hours (minimum)
8 hours 3 168 4.2, so in practice 5 to allow for days off
12 hours 2 168 4.2, so in practice 4 to 5 depending on the rotation

Always plan a pool of trained relief guards for call-outs, vacations and turnover.

Step 7: prove service to clients

Clients pay for coverage they usually cannot see. The companies that keep contracts can show, for every shift, that the guard arrived on time, stayed on post and completed the patrol. That means:

EZTime lets guards clock in by NFC tag or GPS at the post, complete digital checklists and tasks with photos, and gives supervisors a live view of who is on post. See EZTime for security services.

Startup checklist

Startup checklist complete.

Frequently asked questions

Do I need a license to start a security company?

In most states, yes. Private security companies are commonly licensed by a state board or agency, often requiring a qualifying manager with experience, an exam, background checks and insurance. A few states regulate locally. Check each state where you will operate.

Do security guards need a license?

In many states guards must be registered or licensed individually, with background checks and required training hours. Armed guards need additional firearms permits and training.

How do security companies charge clients?

Usually per guard hour, with a bill rate that covers wages, payroll taxes, insurance, training, supervision, overhead and profit. Contracts often specify rates for overtime and holidays.

How many guards do I need for a 24/7 post?

A 24/7 post needs 168 hours of coverage a week, which is more than four full-time guards. In practice, most companies plan four to five guards per post plus a relief pool for call-outs and vacations.

How do I prove guards were on post?

Use verified clock-ins at the post, such as NFC tags or GPS stamps, recorded patrol checkpoints with times and photos, incident reports and daily activity reports shared with clients.

What insurance does a security guard company need?

Most states require general liability coverage at a minimum, and many clients require more. Workers’ compensation, commercial auto and, for armed services, additional coverage are common. Washington, for example, requires a certificate of liability insurance with at least $25,000 bodily injury and $25,000 property damage coverage for a company license.

What is the difference between starting an armed and an unarmed security company?

Armed services usually need additional state licenses or permits for the company and each guard, firearms training and qualification, more background screening and higher insurance costs. Many new companies start unarmed and add armed services once they have the systems and contracts to support them.

Where to go next

Managing hourly employees as you grow

As soon as you have hourly staff, two jobs take more time than most owners expect: recording hours accurately and building a schedule everyone can see. Under the federal Fair Labor Standards Act (FLSA), employers must keep accurate records of hours worked and pay non-exempt employees overtime for hours over 40 in a workweek, and some states add daily overtime or meal-break rules. This is general information, not legal advice.

A simple setup that scales

  • Have staff clock in from their phone, a shared tablet or a wall time clock, so every punch is recorded automatically.
  • Publish the weekly schedule in one place and let employees request shift swaps and time off.
  • Export approved hours to payroll at the end of each pay period instead of retyping timesheets.

EZTime covers all three with a time clock app, employee scheduling and payroll-ready exports, from $2 per employee per month. See pricing and start a 14-day trial.

More on this topic

Prove every post was covered

EZTime lets guards clock in at the site by NFC tag or GPS app, with geofencing on higher plans, so you can show clients when each post was staffed.

Disclaimer: This guide on security companies is general information, not legal advice. Security licensing, training and insurance requirements vary by state and city and change over time. Confirm current requirements with the licensing agency in each state where you operate.