How to Start a Security Guard Company in Minnesota: PDPSB Protective Agent License

Minnesota does not issue a general business license. A security company here is licensed as a protective agent by the Private Detective and Protective Agent Services Board (PDPSB), part of the Minnesota Department of Public Safety, under Minn. Stat. 326.32 to 326.339. If you searched for a security guard license Minnesota residents need, this protective agent license is the credential you are looking for. A minnesota security company license is not the same as your Secretary of State filing, which is a filing and not a license. This guide puts the steps in the order that works: form the entity, confirm the qualified person, gather the paperwork, post the bond and insurance, register for taxes, then file the application.

What you need before you start

Gather these items before you file anything. Missing items delay an application, so build a checklist and tick each one off.

• A legal name that meets Minnesota naming rules (see Step 3).
• Filed Articles of Organization for an LLC under Chapter 322C, or Articles of Incorporation for a corporation under Chapter 302A.
• A federal employer identification number (EIN) for the entity, issued by the IRS.
• One qualified person with 6,000 hours of qualifying experience as an investigator or protective agent. This person signs the application, or serves as the corporate qualified representative or Minnesota manager.
• Five reference letters.
• Fingerprints and a photograph for the person who signs the application.
• A $10,000 surety bond.
• Proof of financial responsibility: liability insurance covering general liability, completed operations and personal injury, or a net worth statement.
• Payment by check or money order. DPS accepts no other method for these fees.
• A budget that covers the state filing fee, the license fee, the bond premium, insurance and any local license fees.

Step 1: Confirm the protective agent license covers your work

Before you spend money, confirm that the protective agent license covers the services you plan to sell. Read Minn. Stat. 326.32 to 326.339, then contact the PDPSB and ask whether your service mix, such as unarmed patrol, event security or investigations, falls under this license or needs a separate credential. Get the answer in writing if you can.

The license is valid for two years under Minn. Stat. 326.3381. Mark the expiration date on your calendar as soon as you receive the license, because renewal requires its own fee and paperwork.

Step 2: Choose your entity type

Your entity choice affects the license fee, the tax return you file and who can sign the application. Three facts matter most:

• Partnerships are no longer a licensed option. 2026 Laws chapter 83 removed partnerships and requires corporate officers to meet the licensing rules.
• An individual applicant pays $800 for a new protective agent license. A corporation or LLC pays $1,800.
• An LLC taxed as a partnership or disregarded entity passes income through to its owners, who pay Minnesota individual income tax of 5.35 to 9.85 percent. An LLC taxed as a C corporation pays the 9.8 percent corporation franchise tax.

The minimum fee under Minn. Stat. 290.0922 applies to C corporations, S corporations and partnerships. A single-member LLC that reports only on the member's individual return is exempt. Because each structure carries different tax and liability results, talk to a CPA and an attorney before you choose. This article is not tax or legal advice.

Step 3: Form the LLC or corporation with the Secretary of State

File through Business Filings Online (Minnesota Business and Lien System) at https://mblsportal.sos.mn.gov/Business/Search, or by mail. Search the same site first to check that your name is available. For an LLC, the rules are specific:

• The name must contain the words limited liability company or the abbreviation LLC.
• The name may not contain corporation, incorporated, or their abbreviations.
• The name must be distinguishable on Secretary of State records from every domestic LLC, LLP, corporation and limited partnership on file, authorized, registered or reserved in Minnesota (Minn. Stat. 322C.0108).

Next, set a registered office. Minnesota requires a registered office, which must be a Minnesota street address. A PO box by itself is not accepted. The registered office does not have to match your principal place of business. Naming a registered agent is optional for a domestic entity.

The Articles of Organization fee is $155 for online or in-person filing, which is expedited, or $135 for mail, which is not expedited. The Secretary of State does not publish a guaranteed turnaround in business days, so plan for variable processing. Corporations file Articles of Incorporation for the same $155 fee. If you need time to finish paperwork, a name reservation costs $55 and holds the name for 12 months, renewable in 12 month periods.

Every LLC and corporation files an Annual Renewal each year. It is due December 31, and it costs $0 if the entity is active and in good standing. Missing the deadline terminates or revokes an LLC under Minn. Stat. 322C.0705, and a corporation dissolves under Minn. Stat. 302A.821. On the current Secretary of State fee schedule, LLC reinstatement costs $65 by mail or $85 online or in person.

Step 4: Use an assumed name only if you need one

If your public brand differs from your legal name, you need a Certificate of Assumed Name. For example, a company named Northstar Protection Group LLC that markets as Northstar Guard Services needs one. File it with the Secretary of State, Business Services, at https://www.sos.mn.gov/business-liens/business-forms-fees/assumed-namedba/. The fee is $50 online or in person, or $30 by mail.

The certificate must be published for two consecutive issues in the legal notices section of a qualified legal newspaper in the county of your principal place of business. Failure to publish may render the certificate invalid. The certificate must be renewed annually at no charge. Do not confuse this with the LLC or corporation filing, which needs no publication. On the PDPSB application, use your legal entity name unless the board tells you otherwise.

Step 5: Confirm the qualified person meets the experience rule

The person who signs the application, or the corporate qualified representative or Minnesota manager, needs 6,000 hours of qualifying experience as an investigator or protective agent. Minn. Stat. 326.3382 sets this requirement. Build the record now. Collect letters from past employers that state job titles, dates, duties and hours worked. Keep pay records or timesheets that support the totals.

Confirm with the PDPSB which roles count as qualifying experience before you rely on them. A common mistake is assuming that general security work counts toward the 6,000 hours without checking. If your qualified person is short on hours, the application cannot move forward until the gap is closed, so verify early.

Step 6: Gather references, fingerprints and a photograph

The application requires five reference letters. Ask referees who can speak to the applicant's work in investigation or protective services. Give them a deadline and a short summary of what the board needs to see. Keep copies of every letter you submit.

Fingerprints and a photograph are required for the person who signs the application. The 2026 change means corporate officers must also meet the licensing rules, so an incorporated business should identify all its officers early and plan their paperwork alongside the qualified representative. Ask the PDPSB how it wants fingerprints submitted and what photograph specifications apply.

Step 7: Post the surety bond and prove financial responsibility

You must file a $10,000 surety bond. A surety company or your insurance broker can issue it. Ask for a quote early, because underwriting can take time, and make sure the bond names your legal entity exactly as it appears on your Articles.

Next, prove financial responsibility under Minn. Stat. 326.3382 subd. 3 in one of two ways. The first is liability insurance covering general liability, completed operations and personal injury. The second is a net worth statement. Insurance is the more common route for an operating company, but the policy limits must satisfy the board, and this guide does not state a required limit. Confirm the required coverage amounts with the PDPSB before you buy a policy.

Step 8: Register for taxes and check local rules

Register with the Minnesota Department of Revenue at https://www.mndor.state.mn.us/tp/eservices/_/?link=NewBusinessReg to obtain a Minnesota Tax ID and a Sales and Use Tax account. Registration is required before you make taxable sales. The state sales tax rate is 6.875 percent, and local taxes apply on top. Whether your specific services are taxable is a question for the Department of Revenue, so confirm it there. If you hire employees, also ask Revenue about the withholding registration you need.

Minnesota issues no general statewide business license. Use License Minnesota at https://mn.gov/elicense to browse other licenses by topic or agency. Local rules vary. Minnesota has 87 counties, about 853 cities and about 1,780 townships. Minneapolis and Saint Paul license by category, and neither issues a general business license. Ask the clerk of your city or township whether a separate local license applies to your service category, and check zoning for your office address before you sign a lease.

Step 9: File the PDPSB application and pay the fees

The PDPSB fee page lists the following figures for a protective agent license: $800 for an individual, and $1,800 for a corporation or LLC. Payment is by check or money order only. The fee page lists the license fees, but you must check with the board for the current application fee before you send payment, because that figure is not settled in this guide.

Other fees on the same page include $900 to change the Minnesota manager or qualified representative on a corporate license. Renewal fees rise with company size, from $480 for one employee up to $1,160 for 51 or more employees. Confirm which band applies to your headcount with the board before each renewal.

Assemble the full packet before you submit. Include the filed entity documents, the qualified person's experience records, the five references, fingerprints, photograph, bond, proof of financial responsibility and the check or money order. Keep a complete copy of everything you send.

Tips and common mistakes to avoid

• Do not file the PDPSB application under a trade name. Use the legal name on your filed articles.
• Do not assume the qualified person's hours qualify. Get the board's confirmation for each role.
• Do not send a PO box as your registered office. Use a Minnesota street address.
• Do not use partnership structures. They are no longer a licensed option.
• Do not pay by card or cash. Use a check or money order.
• Do not miss the December 31 Annual Renewal. It costs nothing to file on time, and a missed deadline can terminate your LLC or dissolve your corporation.
• Do not forget the two-year license term. Put the renewal on your calendar at approval.
• Do not publish an assumed name without filing the certificate first, and do not skip publication after you file.

What to expect

A complete, accurate packet is more likely to move through review without returns than an incomplete one. The PDPSB sets its own timeline, and this guide does not state a processing time for the protective agent license, so ask the board for its current estimate. Expect the process to take longer if the qualified person's hours need documentation or if the bond and insurance take time to place.

Once licensed, the business may be able to operate in the protective services category. Plan to keep the license current, track the two-year renewal date, and report any change to the Minnesota manager or qualified representative promptly, since a change carries a $900 fee on a corporate license.

For free or low-cost guidance on planning and cash flow, the Minnesota Small Business Development Center Network, administered by DEED, offers help at https://mn.gov/deed/business/help/sbdc/. The SBA's Minnesota district page is at https://www.sba.gov/district/minnesota.

Important disclaimer

This article is informational content only. It is not legal, tax, or licensing advice, and it does not create an attorney-client or CPA-client relationship. Fees, statutes and agency requirements change. Confirm every figure with the agency named before you pay or file. For complex situations, including entity choice, insurance, surety bonds and employment matters, consult a qualified attorney and a certified public accountant licensed in Minnesota.