How to Start a Bounty Hunter Business

Bounty hunters track down criminals who have skipped out on their bail and bring them back to the county in which they were arrested. In the US, bounty hunters catch 90% of the people who jump bail, which means bounty hunters enjoy a generally favorable reputation with bail bondsman.

Learn how to start your own Bounty Hunter Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services.

Start a bounty hunter business by following these 10 steps:

  1. Plan your Bounty Hunter Business
  2. Form your Bounty Hunter Business into a Legal Entity
  3. Register your Bounty Hunter Business for Taxes
  4. Open a Business Bank Account & Credit Card
  5. Set up Accounting for your Bounty Hunter Business
  6. Get the Necessary Permits & Licenses for your Bounty Hunter Business
  7. Get Bounty Hunter Business Insurance
  8. Define your Bounty Hunter Business Brand
  9. Create your Bounty Hunter Business Website
  10. Set up your Business Phone System

We have put together this simple guide to starting your bounty hunter business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Bounty Hunter Business Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

  • Your state's business records
  • Federal and state trademark records
  • Social media platforms
  • Web domain availability.

It's very important to secure your domain name before someone else does.

Want some help naming your bounty hunter business?

Business Name Generator

What are the costs involved in opening a bounty hunter business?

Every bounty hunter has their own arsenal of tools, which can include anything from walkie-talkies to a firearm and a taser. Bounty hunters will need to purchase handcuffs and potentially leg restraints. They should also invest in protective clothing, such as a tactical vest with ballistic panels.

What are the ongoing expenses for a bounty hunter business?

As long as a bounty hunter is buying durable equipment, they likely won’t have too many ongoing expenses. They may need to replace their clothing or repair their communications equipment, but for the most part, the initial capital will be the biggest expense.

Who is the target market?

Most of the time, it’s bail bondsman who hire a bounty hunter. However, friends or family members who scraped bail money together may also hire a bounty hunter to recover their savings.

How does a bounty hunter business make money?

Usually, bounty hunters only charge people if they’re able to catch the fugitive. This way, bounty hunters are highly motivated, and bondsmen have every incentive to hire them to get the job done.

How much can you charge customers?

Bounty hunters perform their job at great risk and they can take on cases with bails set as high as seven figures. As such, it’s not unusual for some agencies to pay up to $500,000 to get their clients back. Usually though, a bounty hunter charges between 10–20% of the amount of the bail.

How much profit can a bounty hunter business make?

A good bounty hunter can make $1 million a year, though the average salary is about $70,000. These numbers account for costs of travel and equipment. Most bounty hunters will need to take on at least 100 cases per year in order to achieve the average salary.

How can you make your business more profitable?

Successful bounty hunters can consider starting their own education courses for up-and-coming bounty hunters in their area. Or they may choose to offer additional consulting services to bail bondsman. For example, they may give specific tips so a bondsman can spot someone who's likely to run.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your bounty hunter business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website. If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

  • Separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

  • Separate personal and business expenses by putting your business' expenses all in one place.
  • Build your company's credit history, which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a bounty hunter business. It is especially important to note that some states and counties prohibit the business of bounty hunters completely, so it is important to know local legislation in order to avoid legal trouble. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.

Certificate of Occupancy

It is important to run your bounty hunter business out of an office in order to protect your personal information such as place of residence. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

  • If you plan to lease a location:
    • It is generally the landlord’s responsibility to obtain a CO.
    • Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a bounty hunter business.
    • After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
  • If you plan to purchase or build a location:
    • You will be responsible for obtaining a valid CO from a local government authority.
    • Review all building codes and zoning requirements for your business’ location to ensure your bounty hunter business will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Bounty Hunter Business needs and how much it will cost you by reading our guide Business Insurance for Bounty Hunter Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended: Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker.

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a bounty hunter business

Bounty hunters need to know the bail bondsman of their county before they can generate business. Even if a bondsman is used to working with a specific bounty hunter, it’s worth making those relationships to get your name out there. You can also try online advertising if you’re looking to attract attention from civilians, but this will generally be only a small fraction of your business.

How to keep customers coming back

Bondsman aren’t just hoping that you’ll bring the fugitive back — they’re hoping you’ll do so quickly and without a lot of drama. The more efficient you are, the more likely it is that people will count on you in the future.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business.

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

  • All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
  • Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
  • Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended: Get started today using our recommended website builder or check out our review of the Best Website Builders.

Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

This business is good for someone who wants to be a combination of a stand-alone police officer and private investigator. Not only is it risky to become a bounty hunter, but it’s also incredibly time-consuming. You’ll need a flexible schedule to track a fugitive down (in some cases, traveling thousands of miles to find them). And while it likely won’t be anything like a reality T.V. show, it’s worth understanding and accepting the risks before choosing this line of work.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a bounty hunter business?

Most cases start with a call from a bail bondsman. A bondsman has put up the money needed for a criminal's bail and desperately wants to get the money back by bringing the fugitive to court. Bounty hunters will typically travel to the bondsman and obtain power of authority, which allows the bounty hunter to arrest the fugitive. Then, the bounty hunter will get the personal information (e.g., financial data, car make and model, etc.) before setting out to track the person down.

What are some skills and experiences that will help you build a successful bounty hunter business?

State requirements vary when it comes to bounty hunters. Some will make you take general coursework related to criminal law and/or obtain an official license. Additional formal education is not required, though a degree in law enforcement will certainly be helpful.

Bounty hunters need to be curious, organized, and quick thinkers. Fugitives will likely have a few tricks up their sleeve to stay out of sight, and bounty hunters need to be prepared. You’ll also need to be assertive to work with people who may attempt to harm you after you find them. You don’t necessarily need to be a bodybuilder, but you should understand self-defense enough to apprehend someone without risking life or limb.

What is the growth potential for a bounty hunter business?

Bounty hunters who are efficient at what they do have an excellent chance at achieving growth — even if the competition in an area is fierce. Bounty hunting is not an exact science, and it's inevitable that some will be faster and more productive than others. Bondsman will look for these qualities before deciding who to hire.

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Take the Next Step

Find a business mentor

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

  • Funding
  • Events
  • Guides
  • Support

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a bounty hunter business?

Bounty hunters are in a dangerous line of work, so it helps to anticipate the risks ahead of time. For example, it may seem like you should work out of your home to cut costs — except that you may end up endangering your family if the wrong person finds out where you live.

Good bounty hunters have to be relentless to find people, but they also have to be clever. The idea is to never use force unless it’s absolutely necessary. Some bounty hunters will try to confuse or trick a fugitive to ensure they have the time to peacefully apprehend them. They may jam the locks of their car or their home so it’s easier to make the arrest.

You’ll also need to learn about the restrictions in every state before you begin bounty hunting. Some states don’t allow bounty hunting (or bail bonds for that matter) of any kind. These states will typically enforce their own laws rather than the laws of the state in which the fugitive originally ran from. In other words, you may be held liable if you catch a person in a neighborhood that doesn't allow bounty hunters.

How and when to build a team

Some bounty hunters prefer to work alone, but many will want a partner or even a full team to make it easier to catch a fugitive. Having several pairs of eyes on any given person can make it easier to spot the potential happens before they happen. If you do choose to work alone, ensure you have an organization system that will help keep track of the billing and scheduling necessities.

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