1. Get training on how to conduct background checks, if needed. Use resources like background checking classes that are offered in your area to help you understand the usage of background checking software and finding information using public records.
2. Review your state’s policies regarding pre-employment background checks. Your pre-employment background checking business must be within your state’s policies and acts like the Fair Credit Reporting Act which specializes in the usage of consumer reports and safekeeping of records.
3. Go to your local city or county’s clerk’s office to apply for your pre-employment background checking business license and fictitous business name. For both applications, you’ll need your driver’s license with your current address, a contact number and your social security. Check with your city or county’s clerk’s office for other requirements and permits.
4. Visit the IRS website to apply or your Employer Identification Number. You’ll need your pre-employment background checking business’s name and your social security number to complete the IRS-Form SS-4.
5. Set the prices for any policies for background checks from your pre-employment background checking business. The ideal pricing for a background check for employment is between $10 and $50, depending in the type of check that’s needed. Write up a formal consent form of the person a background check will be concerning. The form should consist of their first and last name, social security number, their current residential address and the place of employment and job position.
6. Begin your pre-employment background checking business in a home office to cut down startup cost. Majority of your startup cost for your pre-employment background checking business will be invested in promoting your business and payments for information like credit information, DMV reports and court documents.
7. Set up a business checking account at a local financial institution like a credit union for your pre-employment background checking business. You’ll need your business license, social security number and EIN to open a business checking account.