Every State and County has its own set of requirements around the licensing of companies. These requirements set a bar for the level of professionalism and compliance for companies. They include requirements such as background checks for employees and owners, to training, to insurance and bonding requirements.
Security and fire alarm systems are unique in that if something is not done correctly you may not know years down the road when something does not work when you need it. If you every have an insurance claim or other issue related to the work of your vendor, and they are not licensed, insurance may not cover the losses.
Unlicensed companies often cut other corners such as taxes, workers comp insurance, or liability insurance all of which can come back to you if something goes wrong.
Review the requirements in your location. For more information on security alarm business licensing requirements in Washington DC, Maryland, and Virginia visit Urban Alarms Local Alarm Program Page.