How to Start a Security Guard Company in Washington: DOL License, $25,000 Insurance and Sales Tax on Security Services Since Oct 2025

Learning how to start a security guard company business in Washington means stacking several approvals in the right order. The Department of Licensing (DOL) licenses the company and every guard. The Secretary of State registers your entity. The Department of Revenue's Business Licensing Service (BLS) issues your state business license and UBI number. Since October 1, 2025, security services also pay retail sales tax on top of the business and occupation (B&O) tax, which changes how you price and invoice contracts.

This guide walks through the sequence that tends to work best, with the fees and deadlines we can verify. Where a figure has changed or conflicts across sources, we say so and tell you which agency to confirm it with before you pay.

Disclaimer: This article is informational only. It is not legal or tax advice. Security licensing and tax rules are technical, and a licensed attorney or CPA should review your structure, contracts and tax setup, especially if you have partners, investors or more than one entity.

Materials and Information You Need Before You File

Gather these items first so you are not stopped partway through an application:

• Your chosen business name and one backup name
• A registered agent with a physical street address in Washington (no PO Box or private mailbox)
• A qualifying agent who meets the experience requirement or can pass the DOL exam
• A certificate of general liability insurance showing at least $25,000 bodily injury and $25,000 property damage
• Fingerprint background check materials (these carry separate fees)
• A federal Employer Identification Number (EIN) from the IRS, which you will need once you hire staff
• A bank account in the company's name
• A budget for state fees, insurance premiums and training costs

Step 1: Pick the Right Entity Type

Your structure determines whether you file with the Secretary of State at all. Sole proprietors and general partnerships do not file with the Secretary of State, but they still need the DOL license and the BLS registration. Most security companies choose an LLC because it separates personal assets from business liabilities. That protection does not replace the insurance DOL requires, so treat the two as separate decisions.

An LLC files a Certificate of Formation with Initial Report for $180. A corporation files Articles of Incorporation with Initial Report for $180. Both are filed through the Corporations and Charities Filing System (CCFS) at https://ccfs.sos.wa.gov/.

Step 2: Choose and Protect Your Name

Under RCW 23.95.305, an LLC name must include Limited Liability Company, Limited Liability Co., L.L.C. or LLC. The name must be distinguishable from every other business name on record with the Secretary of State, and it cannot contain words such as bank, banking, banker, trust or cooperative. Search the Secretary of State business database before you commit to a name, because a name that looks available online may still conflict with an existing entity.

If you need to hold the name while you assemble paperwork, a name reservation costs $30 and lasts 180 days. If you will operate under a name other than your legal name, register it as a trade name with BLS. A trade name costs $5 for each name, plus the Business License Application processing fee. Trade names are not filed with the Secretary of State or the county.

Step 3: Appoint a Registered Agent

Washington calls this role your registered agent, and RCW 23.95.415 requires every business to designate one. The agent must consent to serve, supply an email address and maintain a physical street address in Washington State. PO Boxes and private mailbox addresses are not accepted. A commercial registered agent can be useful if you do not want your home address on public filings. There is no fee to change the registered agent or the registered office.

Step 4: File Your Formation Document

After your name and agent are set, submit the formation filing in CCFS. The Secretary of State does not publish a standard turnaround for online business filings. Filings are worked in the order received, while expedited filings are generally processed within three business days for $100 per entity. You can request expedited service online at checkout, or by mail with an envelope marked EXPEDITE.

The fee schedule lists same-day service at $150 per entity. For now, front-counter same-day transactions received before 3:30 p.m. are charged the $100 expedited rate, but the Corporations Division has said it will post 30 days notice on its website before the $150 fee takes effect. Check that page before you pay if speed matters.

Step 5: Designate Your Qualifying Agent

DOL's Private Security Guard Program operates under RCW 18.170 and WAC 308-18. Your qualifying agent must have at least three years of management or supervisory experience in security or a related field. If your proposed manager does not have that background, the alternative is to be at least 21 and pass a DOL exam.

Choose this person with care. The qualifying agent's experience is central to the company application, and you will want someone who will stay with the business long enough to keep the company in good standing.

Step 6: Buy Liability Insurance and Get It on File

Under RCW 18.170.060 and RCW 18.170.080, the company must keep a certificate of general liability insurance on file with DOL. The minimum is $25,000 bodily injury and $25,000 property damage. Treat those figures as the floor, not the target. Property managers, commercial clients and government buyers often require higher limits, so read the insurance section of any contract before you accept work.

Ask your insurer to issue the certificate in the form DOL accepts, and confirm that DOL has it on file before you put anyone on a post. Get written quotes from several carriers, because premiums depend on payroll, claims history and the coverage you select.

Step 7: Apply for the DOL Company License

DOL's current fee page lists $364 for a company license, $332 for renewal and $442 for a late renewal. The older WAC 308-18-150 fee table still prints $263 for the company license and $237 for renewal. The two sources disagree, so confirm the current company license amount with DOL before you submit payment. Fingerprint background check fees are separate from these figures.

Company licenses last one year. Put the renewal date on your calendar the day you are licensed, because a late renewal costs more and interrupts your ability to bid and perform work.

Step 8: License Each Guard and Armed Employee

Every guard needs an individual license. DOL's current fee page lists $101 for a guard license, $95 for renewal, $110 for a late renewal and $10 for an armed endorsement. Each guard must complete 8 hours of pre-assignment training under RCW 18.170.105 before working a post.

Armed guards must be at least 21 and hold a firearms certificate from the Criminal Justice Training Commission (CJTC), as required by RCW 18.170.040. The CJTC certificate is a separate cost from the DOL armed endorsement, so confirm its price with CJTC before you build your hiring budget. Under RCW 18.170.140, licensing is state-exclusive, so guard licensing comes from DOL rather than from a city or county. Your city business license is still a separate requirement.

Step 9: Register With the Business Licensing Service

If you are an LLC or corporation, file with the Secretary of State before you submit the Business License Application. Limited liability partnerships follow the same order. General partnerships do not file with the Secretary of State. The application issues your 9-digit Unified Business Identifier (UBI) and handles city and state endorsements, trade names and tax registration in one filing at dor.wa.gov.

A security company will almost certainly meet at least one trigger for this license. It sells a taxable service, it may hire employees within 90 days, it may reach $12,000 or more in gross income each year, or it may use a trade name. The $50 processing fee is non-refundable, and endorsement fees are added on top. Online applications take about 10 business days. Endorsements that require city or state approval can add 2 to 3 weeks, and mailed applications can take up to six weeks.

Washington has 39 counties and 281 incorporated cities and towns, so your local endorsements depend on where you operate and where you deliver service. Ask each city where you plan to work whether it has its own license requirements.

Step 10: Set Up Sales Tax and B&O Reporting

Since October 1, 2025, security services pay retail sales tax in addition to the B&O tax under ESSB 5814. The state sales tax rate is 6.5%, and local rates are added on top, so the combined rate depends on where the service is delivered. Confirm the rate for each location with the Department of Revenue before you quote a contract.

B&O is a gross receipts tax with more than 50 activity classifications and no deduction for labor, materials or other costs. Washington has no corporate income tax and no personal income tax on wages. About 54 cities add their own local B&O tax, which the Department of Revenue does not administer, so your local obligations may differ from the state figures. Ask a CPA how these taxes apply to contracts that mix labor, equipment and travel charges.

Step 11: Calendar Your Recurring Deadlines

Your LLC or corporation must file an annual report every year for $70. It is due by the last day of the month in which the entity was originally formed, and you can file up to 180 days early. A late filing carries a delinquency fee, for a total of $95. Your DOL company license renews every year, and each guard license renews on its own annual cycle. Your sales tax and B&O returns follow the filing schedule the Department of Revenue assigns to your account.

What Results to Expect

A well-prepared applicant that files each item in order may be able to begin billing for guard services within a few weeks of starting the process, although that timeline depends on agency queues, endorsements and how quickly you can staff qualified guards. The Secretary of State and BLS publish processing ranges, but the figures verified for this guide do not include a DOL processing time, so ask DOL directly before you sign client contracts. Results are not guaranteed, and your path will vary with your entity type, local endorsements and staffing plan.

Tips and Common Mistakes to Avoid

• Do not use a PO Box for your registered agent. Washington requires a physical street address in the state.
• Do not assume the Secretary of State filing is the whole process. The BLS Business License Application is a separate step that issues your UBI.
• Do not rely on a single fee figure. Confirm the DOL company license amount on the current page before you pay, because the older WAC table shows a different number.
• Do not put a guard on a post early. Wait until the license is issued and the 8 hours of pre-assignment training are complete.
• Do not carry only the $25,000 minimum without checking contracts. Clients often require higher limits, and a lapse in coverage can put your license at risk.
• Do not skip the tax setup. Sales tax and B&O started applying to security services on October 1, 2025, so price contracts with both in mind.
• Do not operate under a trade name without registering it. A $5 trade name registration through BLS is far cheaper than correcting invoices and marketing materials later.
• Do not let renewals slip. Late DOL renewals cost more than on-time renewals, and an expired guard license leaves you short-staffed.

Next Steps

Start with the entity filing and the name check, then move to the registered agent, insurance certificate and DOL applications. Run the BLS application once your entity is on record, and set up your sales tax and B&O reporting before your first invoice goes out. Keep the official pages for the Secretary of State, the Department of Revenue and DOL bookmarked, because fees and processing times change.

Reminder: This content is informational, not legal or tax advice. Work with a qualified attorney and a CPA on entity choice, insurance limits, contract terms and tax treatment before you launch.