What you need to know
Michigan’s Private Security Business and Security Alarm Act requires businesses that install, service, maintain, alter or monitor security alarm systems to hold a license from LARA. Check the license, and its renewal date, before contracting.
Potentially affected
Michigan organizations hiring a company to install, service, maintain, alter or monitor an intrusion or security alarm system, including subcontracted monitoring and service work.
DSE recommendation
DSE recommends verifying the contractor’s current LARA license before signing any alarm installation, service or monitoring agreement in Michigan.
Michigan’s Private Security Business and Security Alarm Act requires businesses that install, service, maintain, alter or monitor security alarm systems to hold a license from LARA. Check the license, and its renewal date, before contracting.
Source facts
LARA’s guidance explains that 1968 Public Act 330 regulates security alarm system contractors in Michigan, defined as persons engaged in installing, maintaining, altering, monitoring or servicing security alarm systems or responding to them. A business in the security system contractor business must obtain a license from the Department, which currently issues a Security Alarm Contractor Agency license rather than an individual contractor license.
A license is valid for two years from issue. Operating without the proper license is a felony punishable by up to 4 years in prison, a fine of up to $1,000, or both, and every advertisement soliciting security business must contain the licensee’s business name and address as they appear in the Department’s records.
For an initial license, LARA requires a physical location in Michigan, a qualifying officer who meets age, education and criminal-history conditions, and a surety bond or certificate of insurance, among other documents.
Applicability
Use this when selecting or renewing an alarm installer, service company or monitoring provider for a Michigan site. The Act also covers private security guard agencies, which are licensed separately.
DSE recommendation
DSE recommends verifying the contractor’s current LARA license before signing any alarm installation, service or monitoring agreement in Michigan. Record the license number, licensee name and expiration date in the vendor file, confirm the name matches the contract and advertising, ask whether monitoring or service is subcontracted and check that firm too, and add a contract clause requiring notice if the license lapses or is suspended.
Verification
Look up each alarm vendor in LARA’s license verification service and save a dated copy of the result with the contract. Repeat the check at each contract renewal and before the license expiration date recorded in the vendor file.
Official references
Michigan LARA — Licensing Requirements of the Private Security Business and Security Alarm Act. Michigan LARA — Security Alarm Contractor Agency Initial License. Reviewed October 18, 2026.
Review the official source
Michigan LARA — Licensing Requirements of the Private Security Business and Security Alarm Act · Verified October 18, 2026
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