To start a security guard company in Texas you must hold a Company License from the Texas Department of Public Safety (DPS) Private Security Bureau. The path: designate a qualified company representative (21+, three years' field experience including one in management) who passes the company representative exam, form your business, carry general liability insurance meeting the state minimums ($100,000 per occurrence, $200,000 aggregate), get licensed through the TOPS portal, then register each guard (Level II training for unarmed officers). Budget roughly $412 in company license fees and plan several weeks for DPS to process the application and background check.
Texas is one of the largest security markets in the country, employing well over 100,000 security guards (U.S. Bureau of Labor Statistics). Demand runs statewide, from Houston and Dallas–Fort Worth to Austin and San Antonio. Texas licensing is more accessible than California's, but the DPS Private Security Bureau still regulates every company and officer. This guide covers the full journey, from your first decision to your first signed contract.
Free resource
The Texas Security Startup Checklist
- Every step across 6 phases, from your company representative to your first contract
- Tick items off online, your progress saves automatically
- Download the whole thing as a printable PDF
Decide what security services you'll offer
You do not have to pick a single niche. Plenty of Texas firms offer several services at once, then lean into whichever wins the most contracts. The point of this step is to decide what you can realistically staff and sell on day one.
- Common service lines: static guards, mobile patrol, construction-site security, retail and loss prevention, events, residential and HOA patrol, and healthcare.
- Armed or unarmed: armed officers need a Level III commission (45 hours plus firearms training) and higher insurance, so most new companies launch with unarmed Level II officers and add armed services later.
Appoint your company representative
This is the gate. You cannot get a Company License in Texas without a designated company representative, the person legally responsible for the company's regulated security services. As of September 1, 2019, Texas no longer regulates "qualified managers"; instead your company must designate a company representative who:
- Is at least 21 years old at the time of application.
- Has at least three years of accumulated experience in the security field the company will be licensed in, including at least one year in a managerial or supervisory role.
- Passes the DPS company representative examination, an open-book, two-hour test of 50 true/false and multiple-choice questions on Texas Occupations Code Chapter 1702 and Texas Administrative Code Chapter 35.
An owner, partner, or shareholder who holds a 25% or greater interest, or an officer who oversees the regulated services, can serve as the company representative. If you do not personally qualify, you can bring on someone who does.
Name your company
You will list your company name on the DPS license application, so pick something professional and available before you file.
- Check the name is free on the Texas Secretary of State (SOSDirect) business search, and grab the matching domain.
- Avoid words that imply law enforcement or a government agency, which can be rejected.
Choose your business structure (Inc or LLC)
Security is a high-liability industry, so the structure you choose matters. Many Texas security firms form a corporation to put the strongest shield between the business and the owner's personal assets; an LLC is simpler and still separates liability, while a sole proprietorship offers no protection at all. Talk to an attorney or CPA about what fits your situation.
- Register your entity with the Texas Secretary of State.
- Get a free federal EIN from the IRS.
- Open a business bank account and obtain your local city or county business license.
Get your company license (DPS Private Security Bureau)
With your company representative and business in place, apply for your Company License through the Texas Online Private Security (TOPS) portal. Plan for the full cost, not just the headline fee.
- Company license fee: $412 for a two-year license (with the TOPS subscription).
- Fingerprinting: a fingerprinting fee (about $25), submitted electronically through IdentoGo.
- Insurance: proof of general liability insurance meeting the state minimum (see Step 6) is required before the license is issued.
- Timeline: DPS does not publish a fixed processing time for company licenses. Online TOPS filings clear faster than paper, and the FBI fingerprint background check is usually the longest step, so plan several weeks and apply before you take on clients.
The company licensing steps, in order
Get the right insurance
DPS will not issue your company license without proof of general liability insurance, and your clients will ask for it too.
- General liability (required by DPS): minimum limits of $100,000 per occurrence for bodily injury and property damage, $50,000 per occurrence for personal injury, and $200,000 aggregate (Texas Occupations Code §1702.124).
- Client requirements often go higher: many commercial contracts ask for $1,000,000 per occurrence, so quote that when you price insurance.
- Workers' compensation: Texas is the one state where private employers are not legally required to carry it, but most security clients demand it and it protects your business, so it is strongly recommended.
- Commercial auto: needed if you run mobile patrol or company vehicles.
Hire and license your guards
Every security officer you employ in Texas must be registered with DPS and complete state training before they work a single shift.
- Level II training (6 hours) plus exam: required for all non-commissioned (unarmed) security officers, registered through the TOPS portal.
- Level III training (45 hours plus firearms): required for commissioned (armed) officers and personal protection officers.
- Background check: each applicant submits fingerprints through IdentoGo for a DPS and FBI check.
- Cost and timing: DPS processing typically runs about 30 to 60 days; officers cannot work until they are registered.
For the full breakdown, see our guide to Texas security guard license requirements.
Price your services and bid on contracts
Underpricing is the fastest way to fail in contract security. Build your hourly bill rate from the ground up so every shift is profitable.
- Start with true cost: guard wage + payroll taxes + workers' comp + general liability + uniforms and equipment.
- Add overhead and margin: your office, software, recruiting, and a profit margin that survives a bad payroll cycle.
- Write clear proposals: spell out scope, post orders, hours, rates, and what is included so clients compare value, not just price.
Not sure where to land? Use our free security guard pricing calculator to set a defensible bill rate in minutes.
Win your first clients
A license lets you operate; sales is what keeps the lights on. Your first contracts usually come from close to home.
- Where first deals come from: local property managers, construction firms, retailers, event organizers, and your own network and referrals.
- Look credible fast: a simple website, a Google Business Profile, clean uniforms, and a one-page capability sheet.
- Sell proof, not promises: clients want to know you will actually cover the post and prove the patrols happened.
Set up the systems you'll need to run it
Once contracts start, manual scheduling and paper reports break down fast. The right software is also what clients increasingly ask for as proof of service.
- Scheduling so posts are always covered and overtime stays under control.
- GPS-verified clock-in and checkpoint tours to prove guards were on site and patrols happened.
- Incident reports and payroll-ready timesheets so billing and pay are accurate.
Novagems gives new Texas operators one app for guard scheduling, GPS-verified clock-in, checkpoint tours, and incident reports, so you look established from your very first contract.
