How to Start a Private Investigation Business in Illinois (2026)

Last updated: February 25, 2026

Illinois is one of the more demanding states for private investigator licensing. The Illinois Department of Financial and Professional Regulation (IDFPR) requires a minimum of 3 years of qualifying investigative experience, a 75-question written exam offered only twice per year, a $1,000,000 liability insurance policy, and a surety bond. The process takes planning and patience, but Illinois’s large population and diverse economy create strong demand for PI services.

As a licensed PI who runs a private investigation firm, I can tell you that the investment is worth it – but you need to go in with your eyes open about the time, money, and experience required. This guide covers every step.

Private Investigation Requirements in Illinois at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation	IL Secretary of State	$150	Several weeks (mail) or 4-5 days (online + $100)
Federal EIN	IRS	Free	Immediate (online)
Private Detective License (Individual)	IDFPR	$500	2-4 months
Private Detective Agency License	IDFPR	$500	2-4 weeks after individual license
IDFPR Written Exam	Continental Testing Services	$298	Offered twice per year
Surety Bond	Bonding company	$100-$500/year	Same day
Liability Insurance ($1M minimum)	Commercial insurer	$1,500-$4,000/year	Same day
Background Check & Fingerprinting	IDFPR / Illinois State Police	Included in application	2-4 weeks
PERC Card (for employees)	IDFPR	$55 per employee	2-4 weeks

How to Start a Private Investigation Business in Illinois (Step by Step)

Step 1: Verify You Meet the Experience Requirements

Illinois has strict experience requirements for PI licensure:

• Minimum 3 years of qualifying full-time investigative experience within the last 5 years
• A “year” = at least 1,500 hours of investigative work
• Must be at least 21 years old
• High school diploma or GED required

Education Substitutions

Education	Experience Credit
Bachelor’s degree (law enforcement, police science, related field, or business)	2 years credit
Associate’s degree (same fields)	1 year credit

Qualifying experience includes:

• Working as a PERC employee for a licensed PI agency
• Investigator for a licensed attorney
• State, federal, or local law enforcement
• State’s attorney or public defender investigator

Step 2: Pass the IDFPR Written Exam

• Exam: 75-question written exam (Class A licensing exam)
• Duration: Approximately 90 minutes
• Administered by: IDFPR through Continental Testing Services
• Offered: Twice per year – plan accordingly, as missing an exam date means waiting months
• Exam fee: $298 (paid to Continental Testing Services)

Important: The exam is only offered twice per year. Check IDFPR’s website for upcoming dates and register early.

Step 3: Get Liability Insurance and Surety Bond

Liability Insurance

• Minimum required: $1,000,000 liability insurance
• Average cost: $1,500-$4,000/year for PI businesses
• Must submit proof to IDFPR upon passing the exam
• Insurance certificate must be maintained throughout licensure

Surety Bond

• Required bond amount: $1,000-$5,000 (confirm current amount with IDFPR)
• Cost: $100-$500/year (1%-10% of bond amount depending on credit)

Step 4: Apply for Your Private Detective License

Submit your application through the IDFPR CORE Online System.

• Individual Private Detective License fee: $500
• Required documents: Proof of experience, exam results, insurance certificate, surety bond, background check authorization
• Fingerprinting: Required for criminal background check
• Timeline: 2-4 months from application to license issuance

Step 5: Form Your LLC and Get Agency License

File Articles of Organization with the Illinois Secretary of State ($150). Then apply for a Private Detective Agency License from IDFPR.

• Agency license fee: $500
• Renewal (triennial): $450
• Individual renewal deadline: May 31
• Agency renewal deadline: August 31

Step 6: Continuing Education and Renewal

• Continuing education: 20 hours per renewal period (every 3 years)
• Must include at least 4 hours of ethics training
• Renewal fee: $450 (triennial)

Step 7: Employee Requirements (If Hiring)

All employees of a PI agency need proper credentials:

Employee Type	Required Card	Cost	Validity
Unarmed employee/investigator	Permanent Employee Registration Card (PERC)	$55	3 years
Armed employee	Firearm Control Card (FCC)	Additional fee	3 years
Firearms trainer	Firearm Instructor certification	Additional fee	3 years

Workers’ comp is required for any employees (no minimum threshold in Illinois).

Cost to Start a Private Investigation Business in Illinois

Item	Cost	Notes
IDFPR Exam Fee	$298	Paid to Continental Testing Services
Individual PI License	$500	Triennial renewal $450
PI Agency License	$500	Triennial renewal $450
LLC Formation	$150-$250	One-time
Federal EIN	Free	Online at IRS.gov
Surety Bond	$100-$500/year	$1,000-$5,000 bond amount
Liability Insurance ($1M)	$1,500-$4,000/year	Required by IDFPR
Annual Report (SOS)	$75	Annual
Local Business License	$50-$500	Varies by municipality
Workers’ Comp (if employees)	Varies	Required with any employees
Surveillance Equipment	$2,000-$10,000	Cameras, GPS (where legal), recorders
Vehicle (surveillance-appropriate)	$10,000-$25,000	Unmarked, reliable
Office Space (optional at start)	$500-$2,000/month	Can start from home
Background Check Databases	$50-$200/month	TLO, IRB, etc.
Marketing / Website	$500-$3,000	Professional presence
Estimated first-year total: $16,373-$46,523

Related Illinois Business Guides

• Starting a Business in Illinois: Complete Guide

← Back to all Illinois business guides

Frequently Asked Questions

How much experience do I need for an Illinois PI license?

You need a minimum of 3 years (4,500+ hours) of qualifying investigative experience within the last 5 years. A bachelor’s degree in a related field can substitute for 2 years, and an associate’s degree for 1 year. Qualifying experience includes working for a licensed PI agency, law enforcement, or as an investigator for a licensed attorney.

How often is the Illinois PI exam offered?

The IDFPR written exam is offered only twice per year. It’s a 75-question exam lasting about 90 minutes, administered by Continental Testing Services. The exam fee is $298. Check IDFPR’s website for upcoming dates and register early to secure your spot.

How much does an Illinois PI license cost?

The total licensing cost includes: $298 exam fee + $500 individual license + $500 agency license = $1,298 minimum. Add surety bond ($100-$500/year), $1M liability insurance ($1,500-$4,000/year), and LLC formation ($150). Triennial renewals are $450 each for individual and agency licenses.

What insurance do I need for a PI business in Illinois?

IDFPR requires a minimum of $1,000,000 in liability insurance, which typically costs $1,500-$4,000/year. You also need a surety bond ($1,000-$5,000 bond amount). Workers’ comp is required if you have any employees. Commercial auto insurance is recommended for surveillance vehicles.

Do my employees need their own licenses?

Employees don’t need a full PI license, but all unarmed employees must have a Permanent Employee Registration Card (PERC) from IDFPR ($55, valid 3 years). Armed employees need an additional Firearm Control Card (FCC). Both require background checks.

Can I start a PI business with a criminal record?

A full criminal background check is required as part of the application, including fingerprinting. Certain convictions may disqualify you, particularly felonies. IDFPR evaluates applications on a case-by-case basis considering the nature and severity of the offense, time elapsed, and evidence of rehabilitation. Contact IDFPR directly to discuss your specific situation before investing in the exam.