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Although not a legal requirement, a limited liability company (LLC) is often recommended for those in the security sector. The nature of the industry implies risks both physical and financial. Having an LLC provides a protective layer, separating business and personal assets.

Private security companies are defined by the U.S. Bureau of Labor Statistics as companies primarily engaged in providing guard and patrol services, such as bodyguard, guard dog, parking security and security guard services. Many of them will even provide advanced special operations services if the client demands it.

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Public Liability Insurance for security companies covers your business if you or your employees are held liable for accidental injury to your clients, customers, or the public or for damage to their property because of your security businessʼs activities.

If you want to operate any business within the private security industry, you must register your business with PSIRA. You also must get the appropriate security grading (there are various) for your staff, any members, directors, partners, trustees or managers.