How to Start a Security Business in Texas

by Martin Muchira; Updated September 26, 2017
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There are approximately 3500 security businesses in Texas. In the United States there are 140,000 registered individuals who can work in security companies. The Private Texas Security Board is the institution that is in charge of administering on behalf of the State of Texas licenses to individuals who want to start security businesses in Texas. You can carry out the business registration process through e-mail or online whether you are in Texas or out of the Unites States.

Step 1

Research and choose a business structure. There are 7 types of business structures to choose from in Texas. These include general partnership, corporations, associations, limited partnership, limited liability partnerships and sole proprietorship.

Step 2

Register for EIN (Employer Identification Number). This is issued by the Internal Revenue Service (IRS) free of charge and can be carried out online, through e-mail, fax or telephone. The EIN is used to identify the business for taxation purposes.

Step 3

Register for tax. Some of the required permits include a sales tax permit. If you are operating a limited liability company or a corporation, or the business is owned by non-US citizens, you need to register for franchise tax. Fill out form AP-114 and return it to the Comptroller of Accounts. Register for Texas Unemployment tax if you will hire employees, then register for Texas Workforce Commission (TWC) within 10 days of registering for the unemployment tax. This will help you to file the wage reports of your workers.

Step 4

Get licenses and permits. This depends on the type of security company your are starting. Private investigation companies need Class A licenses. Apply for Class B for Security Contractor License if your security business will deal with alarm systems, guard services, closed circuit television systems, courier services or armed cars, guards whether armed or not and locksmith services. Apply for Class C licenses for security companies that deal with private investigation and security contractors, Class T if you operate a telematic company and Class D which is a combination of Class B and security contractor.

Step 5

Apply for a license from the Texas Department of Public Safety, Private Security Bureau. The Bureau is in charge of regulating the security industry in Texas. It takes 6 to 8 weeks to process. The license needs to be renewed on an annual basis.

Step 6

Get employees. Before hiring employees, ensure that they are registered by the Texas Private Security Bureau. Registrations need to be renewed on a yearly basis by the employee.

About the Author

Martin Muchira has been writing content for online businesses since 2008. He has written content for major companies like Air Asia and Comcast. Muchira graduated at the top of his class from Moi University with a Bachelor of Science in wood science and industrial processes.

Photo Credits

  • security camera image by Igor Zhorov from Fotolia.com