How to Open a Security Company in California

You must choose the type of ownership you want before you complete your PPO application. You may only the following categories:

1. Individual (SSN or ITIN)
2. Partnership (FEIN for Partnership or Corporation)
3. Corporation (Secretary of State Identification Number)

A LLC (Limited Liability Company) is not a corporation. 

Always consult with the Bureau of Security and Investigative Services (BSIS) website for updates. Click here for the requirements keeping in mind that the BSIS webpage (as of June 28, 2024) uses the prior-AB1244 requirements. To avoid your application being rejected and BSIS not returning your application fees, we suggest that you use the following post - AB1244 requirements to qualify (BPC 7583.1. (a)):

1. Be 18 or older.

2. Undergo a criminal history background check through the DOJ and the FBI.

3. Have committed no offense or violation of the Private Security Services Act that would be grounds for license suspension or revocation.

4. Have two years of experience (4,000 hours) as a patrolperson, guard, or watchperson, or the equivalent AND 2,000 hours as 

"manager or in an administrative position with a licensed and current private patrol operator."  As of FY 2022/2023, the pass rate is 49% out of 596 candidates. Click here for study options to pass the test.

If you cannot find a qualified manager, or you have someone in mind that needs to have their experience supervised to eventually qualify, contact us for Qualified Manager for Hire. 

In California, the security company is known as the Private Patrol Operator (PPO).  Every PPO needs a qualified manager (See Step 1). A qualified manager can also be the PPO. Also, you can turn in your PPO application the same time as the QM application.

All people listed on the PPO application must meet the following requirements: 

1. Undergo a criminal history background check through the DOJ and the FBI.

2. Have committed no offense or violation of the Private Security Services Act that would be grounds for license suspension or revocation.

** We offer PPO application assistance. Our fees for Jan. 1, 2025, will be $1,000. The PPO application fee is included with the QM application fee.

The PPO and PPO Qualified Manager Application can be filed at the same time.  More than 50% of applications are usually deficient. This causes unexpected and unreasonable delays. We offer PPO QM Application review for errors and can help you maximize your experience on the form. The fee for assistance will be $1,000 on Jan. 1, 2025.  Click here for the review service. 

PPO Qualified Manager Application:

Submit a completed application with two recent passport-quality photographs, a $550 application and examination fee and a Private Patrol Operator Live Scan form signed by the Live Scan Operator. Go to a live scan facility and pay the state and federal fees of $51 plus the cost of the service. The cost should be approximately $25.00. Click here for current BSIS fees.

Pass a two-hour multiple-choice examination covering the Private Security Services Act and other rules and regulations, business knowledge, emergency procedures, security functions, and use of deadly weapons. A copy of the Private Security Services Act is available through this link: www.bsis.ca.gov/laws/pssact.shtml

PPO Application:

Submit a completed application with two recent passport-quality photographs, a $770 application and examination fee and a Private Patrol Operator Live Scan form signed by the Live Scan Operator. All owners or corporate officers must go through the Live Scan process. Go to a live scan facility and pay the state and federal fees of $51 plus the cost of the service. The cost should be approximately $25.00. Click here for current BSIS fees.

Once your proposed business name is approved by the BSIS, you will need to file for a DBA/fictitious business statement. BSIS will need to see a copy of your statement. You do not need to file for a DBA if you are operating the business in your exact legal name or the exact legal name as your corporation. 

We do not recommend that you order your badge/patch/insignia before BSIS (Bureau) approval. Ordering these items before receiving the Bureau's (BSIS) approval could result in you incurring unnecessary costs. The information below was compiled from the BSIS webpage. 

Requesting Bureau Review of Badge/Patch/Cap Insignia

To request the review of your company's badge, patch and/or cap insignia design(s), mail/email the following items to:

Bureau of Security and Investigative Services

Attention: Badge and Patch Review

PO Box 989002

West Sacramento, CA 95798-9002

OR

BadgeandPatch@dca.ca.gov

A written letter requesting the Bureau to review the item or items (specify each item in your letter) for which approval is being requested. The letter must be dated and signed by the owner if your company is licensed as a sole ownership, by a partner associated with the license if licensed as a partnership, or by an officer associated with the license if licensed as a corporation.

A printed color copy or sample of the exact design and actual size of the badge, patch and/or cap insignia for which you are requesting to be reviewed.

Business and Professions Code (BPC) Section 7582.26 specifically prohibits licensees from using a title, wearing an insignia or making any statements that could give the impression that the individual is connected in any way with a federal, state or local governmental agency. The Bureau uses the following to help reduce the likelihood that a badge/patch/cap insignia design could be perceived as being anything other than Private Security.

Badge: The badge must bear on its face the name of the licensee or a distinctive word indicating the name of the licensee and a unique employee identification number (BPC Sections 7582.26 and 7582.28). Regarding the size of the badge, and the font type and size for the company name and employee identification number, consideration is given to the readability of the information from a reasonable distance. The Bureau has previously approved badges at least 2 inches by 3 inches in size. NOTE: the employee identification number should be sequential and distinctive to the badge.

Patch: The patch must bear on its face the full name of the company, as printed on the license and the words Private Security (BPC Sections 7582.26 and 7582.27). Regarding the size of the patch, and the font type and size for the company name and Private Security, consideration is given to the readability of the information from a reasonable distance. The Bureau has previously approved patches at least 3 inches by 4 inches in size.

Cap Insignia: The insignia must bear on its face the name of the licensee or a distinctive word indicating the name of the licensee, and the employee identification number by which the person may be identified by the licensee (BPC Section 7582.26 and 7582.28). Regarding the size of the insignia, and the font type and size for the company name, consideration is given to the readability of the information from a reasonable distance. The Bureau has previously approved insignias 2 inches by 2 inches in size.

No seal, emblem, acronym or configuration may be used on a badge, patch, or cap insignia that is similar to one used by a federal, state or local governmental agency (BPC 7582.26).

If a badge, patch or cap insignia includes the U.S. flag, no mark, letter, word, number, figure, or drawing of any kind may be superimposed on it (U.S. Flag Code).

No badge, patch, or cap insignia may include the Great Seal of the State of California (California Government Code Section 401).

The Bureau recommends contacting the city, county, or city and county which you intend to conduct business to determine if you must also receive approval from the city, county, or city and county to use your selected uniform and insignia designs (BPC 7583.38).

Questions regarding badge/patch/cap insignias may be directed to BadgeandPatch@dca.ca.gov

CALSAGA (an organization that represents large security companies such as Allied Universal and Securitas and other security companies of different sizes) supported AB2220 and stated (in part)...."As more clients require an armed presence at critical infrastructure locations and other high security locations, companies should have a minimum level of insurance to protect the public and its clients." AB 2220 became law in 2015. AB 2220 affects unarmed and armed contracts. It is our opinion that this was another law that prevented small businesses from opening a security company since this large expense is due at the time of initial licensure.

The Private Security Services Act requires a private patrol operator (PPO) to obtain a general liability insurance policy with a minimum coverage of one million dollars ($1,000,000) for each occurrence for initial licensure, and to have the required insurance in effect at the time of license renewal and for the continued maintenance of the license. (Business and Professions Code Sections 7583.39 and 7583.40)

To demonstrate compliance with the insurance requirement, a Certificate of Liability Insurance is to be provided to the Bureau (BSIS):

1. At the time of initial licensure;
2. When the policy expires and is renewed;
3. When a policy expires and a new policy is secured; or
4. Upon the Bureau's request.

The Certificate of Liability should be submitted to the Bureau by the insurer or the insurer's agent or broker electronically to PPOInsurance@dca.ca.gov or by mail to P.O. Box 989002, West Sacramento, CA 95798.

The Certificate of Liability Insurance must satisfy ALL the following requirements:

• Specify the PPO company name (name should align with name associated with BSIS license).
• Specify the PPO license number. (NOTE: Given that a PPO applicant does not yet have a license number, this information is not required with the Certificate submitted at the time of application.)
• Specify the insurance policy number, and start and end dates of the policy period.
• Reflect the general liability insurance policy covers a minimum of one million dollars ($1,000,000) of liability for each occurrence;
• Indicate Bureau of Security and Investigative Services, P.O. Box 989002, West Sacramento, CA 95798" in the Certificate Holder section for the purposes of the Bureau being notified of a change in policy status.
• Reflect the General Liability Insurance policy provides "occur" or "occurrence" coverage. "Claims made" coverage is not permitted because it does not cover an incident that occurred during the policy term if the claim is filed after the policy term.

Questions regarding the liability insurance requirements for PPO licenses may be submitted to the Bureau by email to PPOInsurance@dca.ca.gov. General questions regarding PPO licenses may be submitted by email to PrivateSecurityServices@dca.ca.gov or you may call 800-952-5210 or 916-322-4000. Due to high call volumes, the Bureau suggests contact by email.