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Written by: Esther Strauss
Esther is a business strategist with over 20 years of experience as an entrepreneur, executive, educator, and management advisor.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on July 27, 2021
Investment range
$5,000 - $20,000
Revenue potential
$33,000 - $490,000 p.a.
Time to build
3-6 months
Profit potential
$26,000 - $245,000 p.a.
Industry trend
Growing
Commitment
Flexible
If you want to start a live scan fingerprinting business, here is what you need to know:
Interactive Checklist at your fingertips—begin your live scan fingerprinting business today!
Like all businesses, running a live scan fingerprinting business will suit some people and circumstances more than others.
This industry may particularly suit those who want a flexible mobile business or someone who already has a brick-and-mortar storefront and is looking for a new income stream.
Let’s take a look at some of the pros and cons.
Nearly all employers (96%) conduct some sort of background check on potential employees these days, driving demand for security checks such as fingerprinting. Demand for background checks for other purposes, such as for a tenancy or hospitality, has also increased as consumers and businesses have embraced broader uses of technology to address security concerns.
Trends shaping the live scan fingerprinting industry include:
Challenges in the live scan fingerprinting industry include;
The cost of starting a live scan fingerprinting business varies widely depending upon the approach you take.
A mobile business with no physical storefront can cost as little as $5,000 to get going. At the other end of the scale, starting a brick-and-mortar business with a vehicle for mobile services and a fingerprint technician will cost around $20,000.
The average startup cost is $12,500. A more detailed breakdown of the costs involved in starting up this sort of business can be found in the table below.
| Start-up Costs | Ballpark Range | Average |
|---|---|---|
| Licenses and permits | $100 - $200 | $150 |
| Training and certification | $100 - $900 | $500 |
| Insurance | $300 - $1,000 | $650 |
| Live scan equipment | $1,000 - $3,000 | $2,000 |
| Live scan software | $2,500 - $2,500 | $2,500 |
| Firewall | $300 - $300 | $300 |
| Office furniture and equipment | $0 - $2,000 | $1,000 |
| Office decor | $0 - $1,000 | $500 |
| Office supplies | $0 - $500 | $250 |
| Marketing and advertising | $500 - $3,000 | $1,750 |
| Website and software | $200 - $500 | $350 |
| Hiring | $0 - $100 | $50 |
| Car for mobile services | $0-$5,000 | $2,500 |
| Total | $5,000-$20,000 | $12,500 |
Revenue from a live scan fingerprinting business depends upon the number of clients you serve on a monthly basis. The average industry charge is $25 for a 15-minute appointment. This figure does not include additional charges for transportation for on-site service, or any relevant agency fees.
For a mobile business attracting on average 5 appointments a day for five days in a week, annual revenue will be about $33,000 annually. Your pre-tax profit would be around $26,000, assuming a profit margin of 80%.
A business with a physical storefront and mobile services, on the other hand, may expect 15-20 clients in the shop, and an additional 5 appointments for mobile services on a daily basis. At an average of 23 appointments per day, the gross revenue in this case will be around $150,000 per year. Your profit margin will likely be reduced to 50% considering your higher overhead costs, but you’d still make a tidy profit of $75,000.
As your company gains in popularity you may consider opening additional branches, in which case the revenue and profitability will grow accordingly. If you grow to three locations by the third year and average 25 appointments per day in each branch, you may expect to earn nearly $490,000 in sales, which translates to almost $245,000 in profit.
As with all businesses, there are some barriers to entry to consider.
As security is a highly regulated industry, there are strict regulations, training, and certification requirements to take into account. These will need to be kept up to date and may require payment of a fee.
You may want to get more professional training before launching your live scan fingerprinting business in addition to the Fingerprint Rolling Certification from the DOJ. A few organizations offer advanced fingerprint training to help you to avoid any regulatory hurdles or harsh penalties.
These programs include Start a Live Scan Fingerprinting Business by Live Scan Classes, the Live Scan Course from Print Scan, and Fingerprint Technician Training by the Fingerprint Technician.
Some government bodies, such as the National Air Transportation Association, require the fingerprint technician to be a US citizen. Don’t forget to check out what each organization requires in order to become a certified fingerprint roller.
The US Department of Justice requires that fingerprint technicians do not have a criminal record. As a result, it requires applicants to undergo a criminal history and background check before taking up work in this field.
To ensure that fingerprint technicians are able to perform their work accurately, the Department of Justice also requires they hold a Fingerprint Rolling Certification. To become certified, you must take the following steps:
Now that you have a good idea of what the business entails, let’s take a look at some of the finer points of what your live scan fingerprinting business might offer, and how it will work.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Demand for electronically filed fingerprints is on the rise amid a growing desire for secure identification systems. As a part of their background checks, job applicants, volunteers, and working professionals such as doctors, teachers, lawyers and other corporate staff are increasingly required by their employers to have their fingerprints scanned.
It is imperative to understand how live scan fingerprinting works. A technician rolls the employee’s fingers across a glass plate to record the digital fingerprints. The print is submitted to state and federal agencies as well as the Department of Justice for authentication and a background check.
The outcome of the process will be shared with the employer organization, while the electronic copy of the scanned fingerprints are destroyed as soon as the results are obtained. This ensures the security of the employee’s private information.
The digital fingerprints requirement has created a sizable market for live scan fingerprinting businesses, which translates to a potentially profitable business opportunity. Although anyone can start and profit from a live scan fingerprinting business, the demand also creates an opportunity for existing firms to offer live scan fingerprinting as an additional service to their clients.
For example, if you are a notary public you may want to offer fingerprinting services to boost revenue with minimal additional costs.
Fingerprint scanning is a standardized service, making it very difficult to differentiate your products and services from those of your competitors. As a result, there is very little brand loyalty as the cost of switching to a competitor is effectively zero.
Fingerprint recording businesses are likely to offer two main services. These are:
Live scan fingerprinting: A scan of the fingerprint is recorded electronically through a biometric machine and submitted to the relevant organizations. Live scan is a popular method due to the clarity of the fingerprints, reducing the chance of rejection by any agency.
Fingerprint cards: A more conventional method of fingerprint collection, fingerprint cards can capture fingerprints either through ink or live scan printing. The latter is preferred due to the clear image of fingerprints. Each organization will have their own fingerprint cards.
A few examples of the specific purpose for live scan fingerprinting include an FBI background check, a Financial Industry Regulatory Authority (FINRA) background check, tenant screening, hospitality screening, and child identification (Kidscan).
The cost of live scan fingerprinting to the client varies depending upon the type of service and the organization to which the prints are submitted. As of mid-2021, the FBI charges $17 and the DOJ $25 for a record review based on the submitted prints.
The rolling fee charged by the scanning technician ranges between $20 and $30, averaging $25 per appointment. Thus, if a client needs an FBI background check and DOJ record review together, you should charge $67, which allocates $17 to the FBI, $25 to the Justice Department and $25 as your fee.
Some clients might ask you to visit their home or place of business to take fingerprints, for which an additional transportation charge would be levied. Once you know your costs, use the Step By Step profit margin calculator to determine your price points.
Clients can be drawn from two main groups: consumers and businesses.
As explained above, employees and volunteers are increasingly being asked to have their fingerprints scanned, and may seek out your services individually.
Alternatively, a relationship can be built with businesses and organizations that regularly require new employees and volunteers to submit scans, leading to repeat custom. Examples of this kind might include state agencies such as the FBI or state departments of law enforcement. They might also cover private sector organizations which require a security check, such as financial institutions, real estate brokers, medical practices, and law firms.
You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.
When choosing a commercial space, you may want to follow these rules of thumb:
Here are some ideas for brainstorming your business name:
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Here are the key components of a business plan:
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to a live scan fingerprinting business.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your fingerprint scanning business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.
Choose Your State
The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist, and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.
Securing financing is your next step and there are plenty of ways to raise capital:
Bank and SBA loans are probably the best options, other than friends and family, for funding a live scan fingerprinting business.
Starting a live scan business requires obtaining a number of licenses and permits from local, state, and federal governments.
In order to run your live scan fingerprinting business legally, you will need to obtain the mandatory Fingerprint Rolling Certification from the Department of Justice (DOJ) to legally operate in the US.
Make sure to check the licensing requirements in your state as these vary. For example, in Michigan, you need to submit an array of documents, computer network diagram, and a signed agreement before launching your business. Other states, such as California, only require a background check, although it could take 90-120 days to complete.
Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Before you start making money you’ll need a place to keep it, and that requires opening a bank account.
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your live scan business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You may want to use industry-specific software, such as Print Scan and Fulcrum Biometrics to capture and transmit fingerprints.
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.
You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google.
Here are some powerful marketing strategies for your future business:
Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your service meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your live scan business could be:
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a live scan fingerprinting business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in the fingerprinting industry for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in live scan fingerprinting. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.
If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a live scan fingerprinting business would include:
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
You should expect to start with a lower number of appointments per week, but as you grow your client base, your business will pick up the pace. The income you make will also depend on how you offer your services.
Remember, live scan fingerprinting is a highly scalable business. The industry also lends itself to franchising, allowing for even greater profits. To grow beyond your state, you may want to consider franchising your brand for a fixed upfront fee, as well as a certain percentage on franchisee sales as royalties.
You’re now ready to start scanning and making money!
It mostly takes 10-15 minute to get fingerprinted.
FBI charges $17.00 to grant you access to the Report Management Portal for 30 days. There will be an additional service fee for the fingerprint vendor which is $25 on average. Hence, the total fee for FBI fingerprints is estimated at $42.
Of course. With the right strategies, you can earn a sizable profit from the live scan fingerprinting business. It can also be your part-time or secondary service if you already run a brick-and-mortar business.
If you are hiring a fingerprint roller, you may expect to pay him $15.00 per hour. This may vary depending upon your location.
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