Auto and business services · LLC guide · updated
How to start an LLC for a security guard company
Security companies put guards in situations where force may be used. Claims for false detention, excessive force or failure to protect a client's property are the risks. States license the agency itself, and an LLC holds the license, the guards' payroll and the client contracts.
Our registered agent is optional: $74.25 a year, the same at renewal. Questions first? Ray or Vinny picks up at (954) 470-8356.
- EIN
- Security agency license
- Guard licenses
- Armed permits
- Liability insurance
Security Guard Company businesses in the U.S.
Source: U.S. Census Bureau, County Business Patterns 2022 (NAICS 561612) and U.S. Census Bureau, Nonemployer Statistics 2022 (NAICS 5616), the latest U.S. totals.
Why security guard company owners form an LLC
Use of force claims
Claims of assault, false arrest or detention.
Failure to protect
Clients claiming a guard failed to prevent a loss.
Armed guards
Firearms raise insurance and licensing requirements.
An LLC keeps the company's debts and claims away from your personal assets when you run it as its own business: its own bank account, contracts signed in its name, and no mixing of money. It does not cover your own negligence, and lenders often ask for a personal guarantee. Insurance comes first.
Licenses and registrations for a security guard company
Federal items link to the agency's own page. State and local rules vary, so pick your state at the top for your state's business portal. Tick items off as you go; the list remembers your progress on this device.
- We do thisForm the LLC and get its EINAlmost every registration above asks for the company's legal name and EIN, so this comes first. We file the LLC with your state for $123.75 plus the state fee, and can get the EIN for $41.25; the IRS also issues it free online.
Insurance and taxes to plan for
Insurance
- General liability with assault and battery
Standard policies often exclude it.
- Professional liability
Covers failure to protect claims.
- Workers' compensation
Required for guards.
Taxes
- Guards are employees
Guards you schedule and post are employees. IRS / agency page
- Payroll costs
Payroll and insurance drive pricing.
If the agency license depends on one qualified manager, cover in the operating agreement what happens if that person leaves.
Forming the LLC itself: 7 steps in every state
- 1. Check the name
- 2. Name a registered agent
- 3. File with the state
- 4. Sign an operating agreement
- 5. Get an EIN
- 6. Open a bank account
- 7. Keep it in good standing
The filing office, fee and yearly report change by state. Open your state's step-by-step guide.
What it costs to form a security guard company LLC
| Cost | File it yourself | With Vermilion Vitez |
|---|---|---|
| State filing fee (paid to the state) | $35 to $520 | $35 to $520 |
| Filing service, operating agreement included | $0 | $123.75 |
| EIN from the IRS | $0 | $0 yourself, or $41.25 if we get it |
| Registered agent, per year (optional) | $0 if you serve yourself | $74.25 |
State fees as charged at our checkout. Industry licenses, permits, bonds and insurance above are separate and set by each agency. Checkout shows the card processing fee before you pay.
Frequently asked questions
Do I need a license to start a security company?
In most states, yes, for the agency and for each guard.
Can security guards be contractors?
Usually not. Guards the company schedules and posts are employees.
What insurance does a security company need?
General liability including assault and battery, professional liability and workers' comp.
Can my security LLC bid on federal contracts?
Yes, after SAM.gov registration; Service Contract Act wages apply.
How much does it cost to form an LLC for a security guard company?
Your state's filing fee ($35 to $520 depending on the state) plus $123.75 if we file it, with the operating agreement included. Industry licenses, bonds and insurance are extra and set by each agency.
Is this page legal or tax advice for my security guard company?
No. It summarizes public rules in general terms, with links to the agencies that set them. For your situation, talk to a licensed attorney or CPA, or book a free call with us.
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Ready when you are
Have us file your Security Guard Company LLC
$123.75 plus your state's filing fee, with the operating agreement included. Checkout shows the full total, card processing fee and all, before you pay.
Rather talk first? Call Ray or Vinny at (954) 470-8356.