How to Start a Security Company in Ohio: PISGS Steps and Costs

To start a security company in Ohio, you need a Class C license from Private Investigator Security Guard Services (PISGS), the division of Ohio Homeland Security that regulates the industry. The license requires a Qualifying Agent with at least 4,000 hours of recent security experience, a registered Ohio business entity, commercial general liability insurance at state minimums, a passing score on a written state exam, and roughly $400 to $500 in state fees before your first guard goes on post.

Choose the Class C License

Ohio issues three license classes. Class C covers security services: guards, watchmen, patrol officers, guard dogs, and armored vehicle protection. Class B covers private investigation only. Class A combines both.¹

If you also plan to offer investigative work such as surveillance, background research, or locating missing persons, apply for Class A instead. Most of the steps below apply to all three classes, but the fees and exam content track the license you’re seeking.

Name a Qualifying Agent

Every Ohio security company must designate a Qualifying Agent who is personally responsible for the firm’s compliance with state law. The agent needs at least 4,000 hours of documented security or investigative experience, earned within the five years before the application date. That’s roughly two years of full-time work in a role like security guard or loss prevention officer.²

Experience older than five years does not count. If you left the field for several years and want to come back as an owner, you may need to re-accumulate hours before you can qualify.

PISGS runs a thorough background check on every candidate. A felony conviction, or any offense involving dishonesty or moral failing, will disqualify the applicant. You’ll need verifiable employment records or sworn statements from former employers confirming your hours, plus five personal references who have known you for at least five years. None of those references can be related to you by blood or marriage.²

Register Your Business Entity

PISGS will not process your application until your company is registered with the Ohio Secretary of State. Most security owners choose an LLC or a corporation. Both cost $99 to file.³

File Articles of Organization (LLC) or Articles of Incorporation (corporation) through Ohio Business Central. Your PISGS application must include a certificate from the Secretary of State proving the company is registered. If you registered more than six months before applying, you’ll need a certificate of good standing instead.⁴

Planning to use a trade name? File it separately with the Secretary of State and include that certificate too. Choose carefully: Ohio law prohibits security company names that suggest a connection to a government agency or law enforcement department.²

Get a Federal EIN

You need an Employer Identification Number from the IRS before you can hire employees or file business taxes. It’s free, takes minutes to apply for online, and the PISGS application asks for it, so handle this before you start the license paperwork. Form your state entity first; the IRS asks for your entity type and formation details.⁵

Line Up Insurance

Ohio requires every licensed security company to carry comprehensive general liability insurance with these minimums:

Bodily injury: $100,000 per person and $300,000 per occurrence
Property damage: $100,000

The policy must be commercial general liability. Professional liability policies do not satisfy the requirement.⁴

You’ll submit an ACORD certificate with your application listing PISGS as the certificate holder, and coverage must stay active at all times. A lapse can cost you the license.⁶

These are floors, not ceilings. Most commercial clients and event venues want substantially higher limits before they’ll sign. Many security firms carry $1 million per occurrence or more. Armed services draw higher premiums, and an assault and battery endorsement is worth adding to cover claims from physical confrontations on the job.

Submit the PISGS Application

The license application is PISGS Form 101. Download the current version from the Ohio Homeland Security website; forms get updated.⁷

Your packet must include:

The completed Form 101 with your company’s legal name, physical address, federal tax ID, and the Qualifying Agent’s full personal history
A Secretary of State certificate (registration or good standing)
An ACORD insurance certificate meeting the minimums
Five personal references for the Qualifying Agent, as described above
A recent passport-style photo of the Qualifying Agent
A $200 application fee
A $35 Qualifying Agent fee ($25 plus a $10 Rap Back enrollment fee)

Pay by check or money order and mail the complete packet to the PISGS office in Columbus. Incomplete submissions come back, so review everything first.⁸

Fingerprinting and Background Check

The Qualifying Agent submits fingerprints to the Bureau of Criminal Investigation for a state records check. The fastest route is an electronic fingerprinting (WebCheck) location. The Ohio Attorney General’s office keeps a list of approved sites. Contact the location directly to confirm fees and scheduling.⁹

At the appointment, select “License for private investigator/security guard” as the reason, with reason code 4749.03 for a Qualifying Agent. Bring the PISGS WebCheck Instruction Sheet so the results get routed to the right office.⁹

Pass the Qualifying Agent Exam

Once your background check clears, PISGS schedules the Qualifying Agent for a written exam on Ohio’s security industry laws and regulations. Study Ohio Revised Code Chapter 4749 and the associated administrative rules; the exam draws directly from them.²

A failed exam isn’t fatal. Retakes cost $25 but delay your launch.⁸

Your Wall License and Annual Renewal

Once the agent passes the exam and the board approves the application, PISGS issues a wall license that must be displayed at your place of business. The license is tied to that physical location. Opening a branch office requires a separate branch application and a $100 fee. The license renews annually at $550.⁸

Do not let the license lapse. Operating without a valid license violates state law, and your insurance carrier may deny claims arising during a lapse.

Register Each Security Guard You Hire

Once your company license is active, every guard must be individually registered with the state. The registration application has to be filed no sooner than three days and no later than seven calendar days after the employee’s hire date.¹⁰

Each registration requires a recent photograph and physical description, a fee of up to $40, and fingerprints submitted to BCI for a state background check. The background check looks for disqualifying offenses within the previous three years. Cleared employees receive a state ID card carrying the company’s license number, their photo and description, and the Qualifying Agent’s signature. Guards must carry these cards on duty.¹⁰

Registrations expire annually. Budget $25 per guard per year for renewal, plus whatever the fingerprinting site charges.⁸

One detail that catches new owners off guard: Ohio does not mandate a specific number of pre-employment training hours for unarmed security guards. The quality of your guards’ preparation is entirely on you. Clients will ask about your training program, and an untrained guard is a lawsuit waiting to happen.

Armed Guards Need Firearm Bearer Authorization

If you want to offer armed services, each employee carrying a firearm needs a Firearm Bearer notation on their state ID card. To qualify, the employee must:

Complete 20 hours of handgun training at a program approved by the Ohio Peace Officer Training Commission (OPOTC)
Complete 5 additional hours for each non-handgun firearm type they intend to carry (shotgun, rifle, and so on)
Pass both a state and FBI background check through BCI fingerprinting
Requalify annually on a firearms range under OPOTC-certified supervision

The Firearm Bearer application fee is $15, but the real cost is training and range time. If the basic firearms certificate is older than 18 months, the applicant must show proof of requalification within the past 12 months before applying.¹¹

Federal law adds another layer. Under 18 U.S.C. § 922, anyone convicted of a domestic violence misdemeanor, a felony, or several other categories of offenses is barred from possessing a firearm, and a state license does not override federal prohibition. Your screening for armed positions needs to go beyond what Ohio requires for basic registration. Someone who clears Ohio’s three-year lookback can still be federally prohibited based on an older conviction.¹²

Federal Employer Obligations

Hiring guards triggers the same federal employment rules as any other business. Two trip up new owners most often.

Every employee must complete Form I-9. The employee fills out Section 1 no later than their first day of work. You examine their identity and work authorization documents and complete Section 2 within three business days of the start date. You cannot tell employees which specific documents to present; they choose from the acceptable list.¹³

Security guards are generally non-exempt under the Fair Labor Standards Act, so you owe them at least minimum wage and time-and-a-half for hours over 40 in a workweek. Long shifts and overtime are common in security, and misclassifying guards as exempt is one of the fastest ways to rack up wage-and-hour liability. Budget for overtime from day one.

Costs at a Glance

Fees add up faster than most new owners expect. The state costs you’ll see before and shortly after launch:

Ohio Secretary of State filing (LLC or corporation): $99
PISGS license application: $200
Qualifying Agent initial fee: $35
Each employee registration: up to $40
Firearm Bearer notation per armed employee: $15
Annual license renewal: $550
Annual employee registration renewal: $25 per guard
Branch office application: $100

⁸

These figures leave out fingerprinting fees (set by each WebCheck location), insurance premiums, OPOTC firearms training for armed guards, and the EIN, which is free. The $550 annual renewal is the number most people don’t plan for; it hits every year whether your company had a strong year or a slow one.

1
Ohio Homeland Security. Apply for a License
2
Ohio Legislative Service Commission. Ohio Code Title 47 Chapter 4749 – Section 4749.03
3
Ohio Secretary of State. Filing Forms and Fee Schedule
4
Ohio Homeland Security. Step-by-Step Instructions
5
Internal Revenue Service. Get an Employer Identification Number
6
Ohio Department of Public Safety. Insurance Certificate Sample
7
Ohio Homeland Security. Private Investigator Security Guard Services
8
Ohio Homeland Security. PISGS Fees
9
Ohio Homeland Security. Fingerprinting Information
10
Ohio Legislative Service Commission. Ohio Revised Code Section 4749.06 – Registration of Employees
11
Ohio Legislative Service Commission. Ohio Administrative Code Rule 4501-7-1-22
12
Office of the Law Revision Counsel. 18 USC 922 – Unlawful Acts
13
U.S. Citizenship and Immigration Services. Form I-9 Employment Eligibility Verification