Business Operations and Agency Management
Licensing and structure
A PI agency must operate through the properly licensed entity and qualifying individuals. The license is not transferable; report ownership, address, officer, and employee changes to DLS as required. Do not let a branch or subcontractor operate under a license it does not hold. Maintain the bond or insurance DLS requires and professional liability coverage appropriate to the work.
Contracts and clients
Use a written engagement letter covering scope, deliverables, fees, expenses, confidentiality, termination, no guarantee of outcome, indemnification, and compliance with law. Clarify that the client cannot direct illegal conduct. Bill accurately; do not commingle client retainers with operating funds. Manage expectations about what surveillance or records can prove.
Personnel supervision
Register employees as required, verify eligibility, train on law and ethics, assign work within competence, and review reports. Prohibit unlicensed staff from conducting investigations or holding out. Control firearms, vehicles, cameras, and databases. Use written policies for use of force, pursuit, privacy, and data security.
Worked example
A client wants a fast surveillance job and suggests using a friend who is not licensed. The owner declines and assigns a registered employee, documents the assignment, and confirms insurance coverage. Using the friend could jeopardize the agency license and create liability for unlicensed activity.
Traps
Assuming a corporate license covers every employee; skipping a written contract; failing to supervise subcontractors; and treating client confidentiality as a reason not to cooperate with a lawful court order.