Third-party companies who provide monitoring services across state lines must become familiar with the laws of each jurisdiction in which they provide service. Various jurisdictions require companies doing only monitoring to obtain a license in their jurisdiction.

Others may only require some type of notification, and others may not require any licensing or notification at all. It is important to maintain a separate business license in each local city or county jurisdiction where required. Additionally, if the company is a corporation, it may be required to qualify as a foreign corporation in the other states in which it does business.

Alarm dealers, particularly those participating in dealer programs, must be aware of all statutes and regulations that may affect them. The fact that the principal or master dealer may be licensed will not in itself qualify a dealer to do business in a particular state or jurisdiction.

Dealers who do not comply with laws and regulations applicable to alarm companies in the state or states where they do business may be subject to criminal and civil penalties and may well be precluded from doing business in the state if not properly licensed.

Doing business without a license can be grounds for denying a license in the future. Furthermore, the failure of a company to be properly licensed could preclude the company from bringing an action in that state to enforce the terms of its contract with its customers, including getting paid for work performed.

Additionally, third-party monitoring companies or master alarm dealers who do business with a non-licensed company may be subject to discipline for aiding and abetting unlicensed activities.

Making certain that the contract used by a company complies with the laws of that state is another important concern. Dealers may be required to use a particular contract with their customers provided by the master dealer or principal company.

Although the contract may be valid in the jurisdiction where the principal company does business, it is important that the dealer make sure that the contract provided by the master dealer complies with the laws of the particular jurisdiction in which the dealer is doing business.

Failure to comply may subject the dealer to criminal or civil penalties or other disciplinary proceedings and preclude the dealer from enforcing the terms and conditions of the contract.

Meet with your attorney to make certain that you are properly licensed and that your company and your contracts comply with the laws of the jurisdictions in which you are doing business.