Ever thought about starting your own security company in Illinois? It’s a big step, but with the right information, you can get your business up and running smoothly. Whether you’re looking to provide security guards for local businesses, events, or even private clients, understanding the state’s rules is the key to your success.
This guide will walk you through exactly what you need to know—from navigating the state bureaucracy to keeping your team trained, licensed, and ready for the field.
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Security Agency vs. Security Contractor: What’s the Difference?
First things first, let’s clear up some terminology. In Illinois, there’s a strict legal difference between being a Private Security Contractor (an individual) and running a Private Security Contractor Agency (the business itself).
- Private Security Contractor (Individual): This is the person legally licensed by the state to provide security services. To get this, you need serious, documented experience.
- Private Security Contractor Agency: This is the company you’re looking to start. For your agency to get licensed, it must have a licensed Private Security Contractor on staff to act as the full-time Illinois Manager.
Getting Licensed: The Application Process
Navigating the Illinois Department of Financial and Professional Regulation (IDFPR) can seem daunting, but breaking it down makes it manageable. You’ll need to apply for both your individual license and your agency’s license.
Step 1: The Individual Private Security Contractor License
To become the managing contractor for your new security business, you must meet a few strict criteria:
- The Basic Requirements: You must be at least 21 years old. No felonies for the last 10+ years. Meet the experience requirements below.
- Verify Your Supervisory Experience: The state is very specific about what counts as “supervisory experience.” You need 3 years of experience within the last 5 years doing one of the following:
- Working as a full-time manager for a licensed private security agency.
- Managing a proprietary security force of 30 or more people.
- Working as a full-time supervisor for an in-house security unit of a corporation with 100 or more employees.
- Some credit towards experience may be given for certain college degrees.
- Document this experience using form VE-SAC or VE-PSF
- Fingerprinting: You must be fingerprinted by an IDFPR-approved vendor within 60 days of submitting your application.
- Pass the CTS Exam: You will apply to take the licensing exam through Continental Testing Services (CTS). The exam fee is currently $298.00. It covers the Illinois Private Detective, Private Alarm, Private Security, Fingerprint Vendor, and Locksmith Act of 2004, plus business practices and liability. (Pro tip: CTS provides a study guide—use it!)
- Apply to the IDFPR: Once you pass, you will apply directly to the IDFPR through their online “CORE” system to receive your official license.
Step 2: The Private Security Contractor Agency License
Once you (or your designated manager) have the individual license, you can register the business entity.
- Business Registration: If you are forming an LLC or Corporation, you must register it with the Illinois Secretary of State before applying to the IDFPR. A PLLC may be required; contact your account or lawyer with specific questions if you wish to form a Limited Liability Company.
- Submit the Agency Application: Apply for the agency license through the IDFPR system and pay the required business application fee.
- Secure Insurance: You must provide proof of General Liability Insurance with at least $1,000,000 in coverage for bodily injury or property damage. This is non-negotiable to maintain your license.
- Workers’ Compensation: If you plan to hire even one employee, Illinois law requires you to carry Workers’ Compensation Insurance.
- Look into Surety Bonds: While the state doesn’t require a general surety bond for the initial agency license, some local municipalities and high-level client contracts may require one (usually ranging from $10,000 to $25,000) to guarantee your services.
Insurance Carriers for Security Companies
The following companies might be able to assist in providing you and your new security company with the necessary insurance that Illinois requires. We have no affiliation with these security insurance companies. Please exercise your due diligence.
- El Dorado Insurance
- The Hartford
- Central Insurance Agency
- Wexford
These companies are provided as a courtesy; there are certainly dozens of other insurance companies that work with Illinois Security Contractors and Agencies.
Training Your Team: The Rules for Unarmed and Armed Officers
Your security officers are your frontline. Illinois has clear rules ensuring everyone working in security knows their stuff. Every single security officer must hold a Permanent Employee Registration Card (PERC), which proves they have passed a state background check.
Here is the breakdown of training requirements:
- Unarmed Officers: Before hitting the streets, unarmed officers must complete 20 hours of basic security training. This must be completed within 30 days of their hire date.
- Armed Officers (The 3 F’s – Firearms, FOID, and FCC): Having armed guards requires jumping through a few more hoops.
- They must complete the 20-hour basic training plus an additional 28-hour approved firearm training course (for a total of 48 hours).
- They must hold a valid FOID (Firearm Owners Identification) card.
- Crucial Rule: Armed guards cannot legally work armed without a Firearm Control Card (FCC). The employee cannot apply for this themselves; you, as the employer, must apply for the FCC on their behalf through the IDFPR.
- Annual Refresher: Every year, all officers (armed and unarmed) must complete 8 hours of refresher training to keep their skills sharp.
Keeping Good Records
The IDFPR requires that you keep meticulously detailed, up-to-date records of all training your officers complete, alongside their PERC and FCC statuses. These records must be readily available if the IDFPR ever conducts an audit. We provide all the training documents in digital format, making them easy to back up and recall later during an audit.
The training records you are required to keep for each of your officers…
- 20 hour basic firearm training
- New Hire Site Specific Training
- 8 hour annual refresher training
- 28 hour firearm training (if armed)
- 8 hour annual armed refresher training (if armed)
Partner with the Academy of Security Training and Alpha Koncepts and we make keeping records for your security employees’ training simple and easy.
How Academy Security Training Can Help You Succeed
Running a security company is hard enough. We make it easy to remain compliant with all of the training for your staff. Navigating all these requirements might seem like a lot, but you don’t have to do it alone. At the Academy of Security Training, we specialize in helping security professionals and agencies in Illinois meet these strict state standards.
We offer a variety of courses designed to make compliance easy and accessible:
- Online Courses: We offer the mandated 20-hour Unarmed Certification, the 8-hour Annual Refresher, and specialized courses on de-escalation, liability, and communication. Your team can train at their own pace, from anywhere.
- In-Person Training: We provide the mandatory in-person training for unarmed and armed officers. We offer bulk pricing for security companies.
- Armed and Specialty Training: If you’d like your officers to get their armed licenses or wish to provide specialty training for handcuffs, batons, or pepper spray, we can help get your officers certified. In addition, we also offer medical training and CPR recertification classes.
We understand Illinois regulations inside and out. Our goal is to ensure your officers are not just compliant, but truly prepared for the field.
