How to Start a Security Guard Business in Delaware

Market Opportunity in Delaware

Delaware presents a solid, underserved market for a security guard business. The state’s population of just over 1 million is concentrated in three counties: New Castle (north, ~560k), Kent (central, ~180k), and Sussex (south, ~260k). Demand is driven by Wilmington’s corporate office towers, the University of Delaware in Newark, the coastal tourist strip (Rehoboth Beach, Dewey Beach) during summer months, and a growing industrial/logistics base near the Port of Wilmington and the I-95 corridor. Residential security is also on the rise, especially in gated communities and high-end developments in Sussex County.

Growth trends: Delaware’s crime rate is slightly below the national average, but property crime is an ongoing concern. Businesses are increasingly contracting for overnight patrol, event security, and access control. The retirement population in Sussex County drives demand for community patrol and concierge security. The market is less saturated than neighboring states like Pennsylvania or Maryland because the small geography means fewer competitors, but you also face less volume. A focused, reliable operator can quickly capture local contracts.

Challenges: Seasonal fluctuations in beach areas, and a relatively small pool of licensed guards means you may need to invest in training and recruitment. However, the tight community allows word-of-mouth to work fast.

State Licensing & Legal Requirements

In Delaware, security guard businesses are regulated by the Delaware State Board of Private Security (part of the Division of Professional Regulation). You must be licensed as a Private Security Agency before hiring employees or signing contracts. Here are the exact requirements:

• Agency License – Apply to the Board of Private Security (via the Division of Professional Regulation). You must submit a completed application, $400 initial fee (renewal $200 annually), a $10,000 surety bond, and proof of general liability insurance (minimum $1 million per occurrence).
• Individual Licenses for Employees – Every security guard (including yourself initially) must hold a Private Security Guard License from the same board. Requirements: age 21+, no felony or disqualifying misdemeanor, complete 8 hours of pre-assignment training (Board-approved curriculum), and pass a fingerprint-based background check through the Delaware State Police ($105 fee).
• Business Entity Registration – Register your business with the Delaware Division of Corporations (if LLC or Corp). File a Certificate of Formation and obtain a State Business License (Division of Revenue).
• Employer Tax IDs – Federal EIN from IRS, and Delaware Employer Withholding Account from the Division of Revenue.
• Workers’ Compensation Insurance – Required if you have any employees. Delaware mandates coverage even for sole proprietors if they have employees. Minimum $100,000 per occurrence.
• Municipal Business Licenses – Check with the city or town where you operate. Wilmington requires a City Business License ($100/year); Newark and Dover have similar local licenses ($50–$150). Beach towns often require seasonal permits.
• Unarmed vs. Armed – Carry a firearm? You need a separate Armed Security Guard Endorsement, which requires 24 hours of additional training, range qualification, and a higher bond ($25,000). Firearms must be registered with the Delaware State Police.

All forms are available at dpr.delaware.gov/boards/privatesecurity.

Startup Costs

Below is an itemized breakdown in Delaware-specific dollar ranges. You can start with a lean solo operation and scale.

If you work alone and have a vehicle already, you can start under $5,000. The bond and insurance are the largest recurring costs.

Revenue Potential in Delaware

In Delaware, typical billable rates for unarmed security guards range from $18 to $28 per hour for commercial accounts, with residential or beach season rates hitting $25–$35. Armed guards fetch $25–$40 per hour. Average job ticket (small residential patrol or nightly check-in) is around $200–$600 per month. Larger commercial contracts (e.g., an office building requiring 8-hour overnight coverage) can be $4,000–$7,000 per month.

Path to $5k/month: Secure 2–3 commercial contracts at 20–30 hours per week total, billed at $22/hr average. That’s $1,320–$1,980 per week = $5,280–$7,920/month. Alternatively, mix one 24/7 on-site guard (three shifts) with one or two patrol accounts.

Path to $10k/month: Add a second employee or subcontract. Land a single large contract like a 24/7 manufacturing facility in New Castle County (50–60 hours weekly at $25/hr = $5,000–$6,000/month) plus two smaller residential patrols ($1,500–$2,000 each) and a weekend event security gig ($1,000).

Seasonal revenue spikes: Summer in Rehoboth Beach can double your monthly income from event security and vacation rental monitoring. Use that to smooth winter months.

Your First 30 Days

Day 1–5: File your LLC with the Delaware Division of Corporations (online, $90 fee). Obtain your Federal EIN (free, IRS.gov). Register for a state business license through the

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