Bounty hunters chase after offenders who have jumped bail and return them to the county where they were detained. Bounty hunters apprehend 90% of those who skip bail in the United States, which means they have a good reputation with bail bondsmen.
Follow these ten steps to start a bounty hunting business:
Make a plan for your Bounty Hunter business.
Create a legal entity for your Bounty Hunter business.
Taxes must be registered for your Bounty Hunter business.
Create a Business Bank Account and a Credit Card
Create an accounting system for your Bounty Hunter business.
Get the Permits and Licenses You Need for Your Bounty Hunter Business
Purchase Bounty Hunter Business Insurance.
Define your Bounty Hunter Company Brand.
Make a website for your Bounty Hunter business.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. This basic guide to launching your bounty hunter company has been put up by us. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
What are the expenses of starting a bounty hunting business?
Every bounty hunter has their own set of gear, which might range from walkie-talkies to firearms and tasers. Bounty hunters will require handcuffs and maybe leg shackles. They should also buy protective gear, such as a tactical vest with ballistic panels.
What are the continuing costs of running a bounty hunting business?
A bounty hunter won’t have too many continuing expenditures as long as they obtain reliable equipment. They may need to replace their wardrobe or fix their communication equipment, but the first investment will be the most expensive.
Who is the intended audience?
Most of the time, bail bondsmen employ bounty hunters. Friends or family members who cobbled together bail money may also engage a bounty hunter to retrieve their funds.
How does a bounty hunter company earn money?
Typically, bounty hunters only charge individuals if they are successful in apprehending the fugitive. Bounty hunters are highly motivated in this manner, and bondsmen have every motive to recruit them to complete the mission.
How much money may you charge your customers?
Bounty hunters put their lives at danger by taking on cases with bails as high as seven figures. As a result, it’s not uncommon for some firms to spend up to $500,000 to reclaim their customers. Typically, a bounty hunter will charge between 10% and 20% of the bond amount.
How much money can a bounty hunter company make?
A successful bounty hunter may earn up to $1 million each year, while the average compensation is about $70,000. These figures include travel and equipment expenditures. To earn the average income, most bounty hunters will need to take on at least 100 cases each year.
How can you increase the profitability of your company?
Successful bounty hunters can think about launching their own education classes for aspiring bounty hunters in their region. Alternatively, they may opt to provide extra advising services to bail bondsmen. For example, they may provide precise information so that a bondsman may identify someone who is likely to flee.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
If your bounty hunter firm is sued, forming a legitimate business organisation, such as an LLC or corporation, prevents you from being held personally accountable.
STEP 3: File your taxes
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
These guides will teach you more about small company taxes:
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
STEP 4: Establish a company bank account and credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Create a net 30 account.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
STEP 5: Establish business accounting
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
STEP 6: Obtain all required permissions and licences
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
Requirements for State and Local Business Licensing
To run a bounty hunting company, certain state permissions and licences may be required. It is also crucial to remember that certain states and counties outright ban the activity of bounty hunters, thus it is critical to be aware of local laws in order to avoid legal difficulties. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.
For information on local licences and permissions, visit:
Check with the clerk’s office in your town, city, or county.
Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.
It is essential to operate your bounty hunter company from an office in order to secure your personal details, such as your address. A Certificate of Occupancy is often required for businesses that operate from a physical site (CO). A certificate of occupancy certifies that all building rules, zoning laws, and government requirements have been satisfied.
If you intend to rent a space:
In most cases, it is the landlord’s obligation to get a CO.
Before leasing, ensure that your landlord has or can get a valid CO for a bounty hunting company.
A new CO is often required after a big remodelling. If your location will be refurbished before opening, incorporate wording in your leasing agreement saying that lease payments would not begin until a valid CO is given.
If you intend to buy or create a location:
It is your responsibility to secure a valid CO from a local government entity.
Examine all building laws and zoning restrictions for the site of your bounty hunter company to verify compliance and the ability to receive a CO.
STEP 7: Obtain commercial insurance.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
STEP 8: Establish your brand
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
How to Promote and Market a Bounty Hunter Company
Before they can create business, bounty hunters must first get acquainted with their county’s bail bondsman. Even if a bondsman is used to dealing with a certain bounty hunter, it is vital to cultivate such ties in order to get your name out there. If you want to grab the attention of civilians, you may attempt internet advertising, but this will usually only be a minor portion of your company.
How to Keep Customers Returning
Bondsmen are hoping that you would not only return the fugitive, but that you will do it promptly and without any fuss. The more efficient you are, the more people will be able to rely on you in the future.
STEP 9: Create your company’s website.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
STEP 10: Install your company phone system.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.