How to Start a Security Company in Texas?

How to Start a Security Company in Texas

Are you considering starting your own security company in Texas? Awesome! The Lone Star State is a great place to do business, and there’s plenty of opportunity in the security industry.

It is both a lucrative and challenging endeavor. But it’s important to understand the steps necessary to set up your security company in Texas. In this blog post, we’ll walk you through the steps you need to take to get your security business up and running.

Let’s get started!


9 Steps to Start a Security Company in Texas

1. Create a business plan

Any successful business needs a solid plan to guide it through the early stages of growth and development.

This is particularly true for security companies, which need to have a clear understanding of their target market, their unique selling points, and their financial goals.

Creating a business plan for your security company means taking the time to research the industry and craft a detailed roadmap for success.

You’ll need to identify your target market, develop a marketing strategy, and set financial benchmarks for your business.

The process can be daunting, but taking the time to create a comprehensive plan will pay off in the long run. By clearly defining your goals and outlining a path to achieving them, you’ll give your security company the best chance of success.

Startup and ongoing costs

The startup costs are minimal, and the ongoing costs are very low. Insurance is the major expense that, in Texas, will cost you around from anywhere between $3000 and $4000 for a 6-month term.

Next, you need to include the License fee that you have to pay to the Texas Department of Public Safety Regulatory Services Division. Class A License will cost you about $350, Class B around $400, and you’ll pay $540 if you decide to go for Class C.

You’ll also have to buy uniforms and defense gear for your staff or security personnel. The Uniform will cost you about $100 per person. In case of armed security, you’ll also need to purchase firearms. A used handgun will cost anywhere between $400 and $2500.

You’ll also need to maintain an office, the cost of which will vary depending on the location and office space. The average cost of leasing office space is around $50 per Square Foot per year in Austin, Texas. In the security business, it’s not essential to have a big office, so you can save a lot of money by just maintaining a small office.

Having a basic business website will cost you around $400. Marketing materials such as flyers, business cards, and brochures will cost you around $2000. Also, don’t forget to include another $200 to $400 as monthly marketing expenses if you plan on acquiring new clients.

The biggest ongoing cost for your security business will be salaries paid to the staff. According to, in Texas, the average salary for a Security guard and a security officer is $15.55 and $19.57 per hour, respectively. So you can calculate the expense accordingly.


There is no easy answer when it comes to pricing for security services. The amount you can charge will depend on a number of factors, including the type of service you provide, the location, and the size of your target market. In general, however, you will want to charge enough to cover your costs and make a profit.

On average, companies charge somewhere around $24 per hour for unarmed security services, whereas for armed security services, the average price lies around $34 per hour. If it’s a high-risk job, the charges can go up to $60 per hour.

Security is an important service, and customers are often willing to pay premium prices for peace of mind. With that said, it is also important to be competitive. Research the prices charged by other businesses in your area, and make sure your rates are in line with the market. By carefully considering your costs and the needs of your customers, you can develop a pricing strategy that maximizes profits and keeps your business running smoothly.

Target Market

The target market for a security guard company is businesses and organizations that require on-site security personnel. This can include everything from small businesses to large corporations, as well as government agencies and other institutions.

Security guard companies typically offer a variety of services, including armed and unarmed security guards, mobile patrols, and event security. They may also offer additional services such as investigative work, loss prevention, and executive protection.

As a result, they must be able to tailor their services to meet the specific needs of their clients. In order to reach their target market, security guard companies must have a strong marketing strategy that includes advertising, public relations, and sales. They must also have a well-trained staff that is able to provide quality service.

Profit Potential

A security guard company can generate a significant amount of profit if it is managed properly. On average, a security company can bring in $45,000-$65,000 annually per security guard. So, if you have 10 guards on your team, you can easily make over $500,000 in revenue with a gross profit margin of 30% to 35%.

Of course, net profits will be calculated by subtracting associated costs, such as insurance and labor. After deduction, take home profit percentage (net profit margin) falls between 12% to 18% of gross revenue.


2. Pick a name for your security business

Choosing a name for your security business is an important decision. After all, the name is likely to be one of the first things potential customers notice about your company. Fortunately, there are a few simple tips you can follow in choosing a great name for your business.

Start by brainstorming a list of keywords that reflect your business. What services do you offer? What type of client are you targeting? What are your core values? Once you have a list of keywords, try combining them to create interesting compound words or phrases.

Don’t be afraid to think outside the box – sometimes, the best names are the ones that are unexpected and unique.

Ask for feedback from trusted friends or colleagues – they may have suggestions you haven’t considered. And remember, it’s worth taking the time to find a name that you love rather than settling for something that’s just okay.

Here are some important things to keep in mind when naming your security company:

1. Keep it easy to say and spell: Think about how people will say it. The way someone says your name is important too—and if they can’t even pronounce it, they’ll never be able to remember who you are! Make sure there aren’t any hard-to-pronounce sounds in your name and that it flows easily off the tongue.

2. Avoid any negative connotations: Make sure your name doesn’t have any negative connotations associated with it—like having an offensive meaning in another language.

3. Don’t infringe on someone else’s trademark: Before you name your security company, make sure you don’t choose a name that’s already been taken by another company. It’s easy to check for these conflicts on the Federal and state trademark records on the website of the United States Patent and Trademark Office (USPTO).

4. Ensure the domain name is available: You’ll need to check that your desired domain name isn’t already taken by another site or business before going forward with any plans. If it’s not, congratulations! Go ahead and reserve it now so no one else can snatch it up before you do!

You can also check out our naming service, where we can help you find a perfect name for your business.


3. Register your security company as a legal entity

After deciding on the name, the next step is to register your company as a legal entity.

There are 4 types of business structures that you can choose from: Sole Proprietorship, Partnership, Limited Liability Company (LLC), and Corporation. The best structure for you depends on your business’s needs and goals.

A sole proprietorship is the simplest and most common type of business structure. It’s easy to set up, and you have complete control over the business. However, you’re also personally liable for all debts and obligations, which can be a risk if your business is unsuccessful.

A partnership is similar to a sole proprietorship, but there are two or more owners who share responsibility for the business. This can be a good way to raise capital and spread the risk among multiple people. However, it’s important to have a clear partnership agreement in place to avoid disagreements down the road.

A limited liability company (LLC) is a type of corporate structure that offers limited liability protection for its owners. This means that each owner is only responsible for their own actions and not for the debts or liabilities of the business. An LLC is a good option if you’re looking for some protection from personal liability but don’t want the formalities of a corporation.

Finally, a corporation is a legal entity that’s separate from its owners. This means that the owners are not personally liable for the debts or liabilities of the corporation.

A corporation can be a good choice if you’re looking for significant liability protection and want to establish your business as a separate entity. However, corporations are subject to more regulations than other business structures and can be more difficult to set up.

Choose the right business structure for your security company by considering your risks, liabilities, and goals. It’s important to consult with a business attorney to ensure that you’re taking all the necessary legal precautions.


4.  Register your company for taxes

Any company that plans on doing business in the United States must register with the state and federal government for taxation purposes.

For that, you need to obtain an EIN, or employer identification number, from the IRS. This unique number is used to identify your business for tax purposes and must be included in all tax filings.

Once you have received your EIN, you will need to use it when filing your business taxes. Failure to register your business for taxes can result in significant penalties, so it is important to make sure that you take care of this important task.


5. Obtain necessary licenses or permits

Next, you need to apply for a license from the Texas Department of Public Safety – Private Security Bureau. This organization is responsible for regulating Texas security companies. Security licenses are divided into three categories or classes:

  • Class A – This is required for a Private Investigation Company to operate.
  • Class B – This Security Contractor Company License is required for a company involved in one or more of the following: alarm, armored car, guard, electronic access control device installers, courier, and locksmith.
  • Class C – This license is required for those businesses involved in both Class A and Class B license activities. It allows you to provide both private investigations services and security services at the same time.

To apply for a license, you will need to submit an application and supporting documentation to the Texas Department of Public Safety – Private Security Bureau. You’ll need to pass a criminal background check and submit your fingerprinting.

Once the application is complete, it will be reviewed by a licensing specialist who will determine whether the applicant meets all of the requirements for licensure.

If everything is in order, the applicant will be issued a security license which will allow them to legally operate as a security company in Texas. Once your application has been reviewed and approved, you will be issued a license which must be renewed on a yearly basis.


6. Purchase required Insurance

The Texas Department of Public Safety requires you to have a certificate of insurance before they issue a license. This is because the DPS wants to make sure you can pay for any damages your company or employees cause.

Here are some of the insurances you can consider for your security company:

  • General Liability insurance
  • Overhead expense liability insurance
  • Payment protection insurance
  • Workers’ Compensation (not a requirement in Texas)

Texas law requires that your insurance policy have minimum limits of:

  • $100,000 for each bodily injury and property damage.
  • $50,000 for each personal injury incident.
  • Total aggregate amount of $200,000 for all occurrences


7. Buy technology and equipment for your security business

If you’re in the security business, you need to stay ahead of the curve by investing in the latest technology and equipment.

There are a lot of options out there, so it’s important to do your research before making any purchase. But with the right tools, you can give your clients the peace of mind that comes with knowing their property is well-protected.

Uniform – When you’re on-site, it’s important to look professional. A proper uniform can help your team feel more confident, and it also helps with customer service.

Flashlights – Having good lighting is an important part of any job, especially when it comes to security work. You need to be able to see clearly at night and during low-light conditions to ensure that all threats are detected quickly and dealt with efficiently.

Walkie-Talkies – Communication is key when working with other security personnel, so make sure you have walkie-talkies available for communication purposes. They make it easy for everyone to stay in touch and organized!

Defense Gear – You never know when a situation may arise where you need defense gear, so it’s important to keep some handy at all times in case of emergencies or unexpected situations that require quick action.


8. Setup your business website

In today’s digital world, having a website is critical for any business that wants to be successful. If you don’t have a website, you’re missing out on potential customers or clients, and you’re essentially invisible to the online world.

Having a well-designed website will allow you to showcase your services, list your prices, and provide potential customers with a way to contact you.

In order to set up a website, you’ll need to buy a domain name and hosting and then design and build your site. You can either do this yourself or hire someone to do it for you. Once your site is up and running, be sure to promote it through social media and other online channels.

Also, be sure to populate your website with content that is relevant to your business, and that will appeal to your target audience. Regular updates will help to keep visitors coming back, and well-written articles can help to establish you as an expert in your field.


9. Promote your business

A security business is only as good as its reputation. If you want to attract new clients, you need to make sure that your business is visible in the community and that potential customers have a positive impression of your company.

By creating a strong online presence, security companies can reach a wider audience and build trust with potential customers.

In addition to traditional methods like search engine optimization and social media marketing, security companies can also use online advertising to reach their target market.

You can also consider exhibiting at local business expos or security trade shows. This will give you a chance to meet potential customers and showcase your services. You can also distribute flyers and brochures in local businesses and neighborhoods.

Partnerships are another great way to promote your brand. By teaming up with other businesses in the industry, security companies can boost their visibility and gain access to new markets. Partnerships can also help to build relationships with other businesses, which can lead to referrals and word-of-mouth promotion.

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