How to Become a Private Investigator in Texas

Last updated: February 23, 2026

Texas is one of the largest markets for private investigation services in the country. With a population of over 30 million, a massive business sector, and some of the busiest court systems in the nation, demand for licensed investigators spans insurance fraud, domestic matters, corporate due diligence, background checks, and litigation support. But Texas takes PI licensing seriously – every investigator and every investigation company must be licensed and registered through the Texas Department of Public Safety.

The Private Security Bureau (PSB) within DPS regulates all private investigators under the Texas Private Security Act (TX Occupations Code Chapter 1702) and the administrative rules in 37 TAC Chapter 35. This guide covers every requirement, step, and cost to legally start and operate a private investigation business in Texas, whether you’re going solo or building an agency.

Texas PI Business Requirements at a Glance

How to Start a PI Business in Texas (Step by Step)

Step 1: Confirm You Meet the Experience Requirements

Before investing in LLC formation or application fees, make sure you (or someone you plan to designate as your qualified manager) meet the DPS experience requirements. A Class A Investigations Company must have a qualified manager, and that person must satisfy at least one of the following pathways:

1. 3 consecutive years of investigation experience (law enforcement, military intelligence, or work under a licensed PI company all count)
2. Bachelor’s degree in criminal justice (or related field) from an accredited institution + 6 months of investigation experience
3. Associate’s degree in criminal justice (or related field) from an accredited institution + 24 months of investigation experience
4. 200 instructional hours in a specialized investigation course from an accredited four-year college or university

Important: If you don’t personally meet these requirements, you can still own the company – but you must hire or designate someone who qualifies as your manager of record. Many new PI business owners partner with an experienced investigator to meet this requirement.

Step 2: Form Your Texas LLC

File your Certificate of Formation online at SOSDirect. Total cost: $300. Processing takes 2-3 business days for online filings.

Your LLC name must include “LLC,” “L.L.C.,” or “Limited Liability Company” and must be distinguishable from existing entities on file. You’ll need a Texas Registered Agent with a physical street address in the state.

If you want to operate under a different name (e.g., “Lone Star Investigations” instead of “Lone Star Investigations LLC”), file an Assumed Name Certificate (Form 503) with the Secretary of State ($25) and with the county clerk.

Step 3: Get Your Federal EIN

Apply for a free Employer Identification Number at IRS.gov. You’ll receive it immediately when applying online. You need this to open a business bank account, file taxes, and complete your DPS application.

Step 4: Apply for the Class A Investigations Company License

This is the core requirement that separates a PI business from any other Texas business. You must obtain a Class A Investigations Company License from the Texas DPS Private Security Bureau (PSB).

Your application must include:

• Completed company license application form
• Documentation of your qualified manager’s credentials (degrees, employment verification letters, or training certificates)
• Company formation documents (Certificate of Formation, EIN confirmation)
• Fingerprint cards for all principals and the qualified manager
• Application fees per the DPS fee schedule

Processing time: Allow 4-8 weeks for DPS to process your application, complete background checks, and issue your license. Incomplete applications are the most common cause of delays – double-check every document before submitting.

Key rule: You cannot begin conducting investigations or advertising PI services until your company license is issued. Operating without a license is a criminal offense under the Texas Private Security Act.

Step 5: Complete Background Checks and Fingerprinting

All company principals and the qualified manager must pass both an FBI fingerprint check and a Texas DPS criminal history check.

Disqualifying offenses include:

• Felony convictions
• Certain misdemeanor convictions (particularly those involving moral turpitude, fraud, or violence)
• Outstanding warrants or pending charges for disqualifying offenses

Schedule your fingerprinting through a DPS-approved vendor. Results are sent directly to the Private Security Bureau as part of your application. Allow 2-4 weeks for processing.

Step 6: Obtain Your Surety Bond and Insurance

Surety Bond

A surety bond is required by DPS to obtain and maintain your company license. The bond amount is set by the DPS fee schedule and must remain active at all times. If your bond lapses, your license can be suspended.

General Liability Insurance

DPS requires your company to carry general liability insurance, and your Certificate of Insurance (COI) must be on file with DPS at all times. This is not optional or “recommended” – it’s a licensing requirement.

• Average cost for PI firms in Texas: $1,200-$3,000/year depending on revenue, number of investigators, and services offered
• Typical coverage: $1 million per occurrence / $2 million aggregate
• Additional coverage to consider: Professional liability (errors and omissions), commercial auto, and cyber liability if you handle digital evidence

Step 7: Register All Individual Investigators

In Texas, every person who conducts investigations must hold an individual PI registration with DPS – there are no exceptions. This applies to company owners, the qualified manager, and every investigator you hire.

• Registration cost: $33 per person ($30 registration fee + $3 subscription fee)
• Background check: Required for each individual (FBI fingerprint + DPS criminal history)
• Company affiliation: Every registered investigator must be affiliated with a licensed company. You cannot hold an individual registration and work independently without a company license.

Important: If you hire a new investigator, they must be registered and approved by DPS before they begin conducting any investigative work. Employing an unregistered investigator can result in fines, license suspension, or criminal charges against both the company and the individual.

Step 8: Set Up Continuing Education Tracking

Texas requires 18 hours of continuing education every 2-year renewal cycle for all licensed investigators. The breakdown:

• 14 hours: Investigations topics (surveillance techniques, skip tracing, legal updates, digital forensics, etc.)
• 2 hours: Ethics
• 2 hours: Texas laws and rules governing private investigators

CE courses must be completed through DPS-approved schools and training providers. Many offer online courses. Set up a tracking system from day one – failing to complete CE by your renewal date means you cannot renew your registration.

Cost to Start a PI Business in Texas

Solo PI (Owner-Operator)

Small PI Agency (2-5 Investigators)

Related Texas Business Guides

• Starting a Business in Texas: Complete Guide

← Back to all Texas business guides

Frequently Asked Questions

Do I need a license to be a private investigator in Texas?

Yes. Texas requires both a company license (Class A Investigations Company) and individual PI registration for every person conducting investigations. Both are issued by the Texas DPS Private Security Bureau. Operating without proper licensing is a criminal offense under TX Occupations Code Chapter 1702.

What experience do I need to start a PI business in Texas?

The qualified manager of your PI company must meet one of four pathways: 3 consecutive years of investigation experience, a bachelor’s in criminal justice plus 6 months experience, an associate’s in criminal justice plus 24 months experience, or 200 instructional hours in a specialized course from an accredited four-year college. You can own the company without meeting these requirements yourself if you designate a qualified manager who does.

How much does a Texas PI license cost?

Individual PI registration costs $33 ($30 + $3 subscription fee). The Class A Investigations Company license has fees set by the DPS fee schedule. Beyond licensing fees, you’ll also need a surety bond and general liability insurance with your COI on file with DPS, bringing total startup regulatory costs well above the base license fees alone.

Can I work as an independent PI without a company license?

No. In Texas, all individual investigators must be registered with DPS and affiliated with a licensed company. You cannot hold a solo individual registration and freelance without a company license. If you want to work independently, you must obtain your own Class A Investigations Company license.

What are the continuing education requirements for Texas PIs?

Licensed investigators must complete 18 hours of CE every 2-year renewal cycle: 14 hours in investigations topics, 2 hours in ethics, and 2 hours in Texas law and rules. All CE must be completed through DPS-approved training providers. Failure to complete CE by your renewal date prevents license renewal.

Is workers’ compensation insurance required for PI businesses in Texas?

No. Texas is one of the few states where workers’ comp is optional for private employers. However, non-subscribers must file DWC Form 005 with the Texas Department of Insurance annually and notify employees in writing. Non-subscribers also lose key legal defenses in employee injury lawsuits. Given the physical nature of surveillance and fieldwork, carrying workers’ comp coverage is strongly recommended for PI agencies with employees.