I am a non resident of US. I am intending to start a business of debt buying and selling. I am planning to form an LLC in Washington DC and purchasing debts and selling it. Are there any special licenses that I have to apply for and Am I eligible to do so, as i never been to US. What is the procedure if I am eligible? I can make the payment if it is possible to make a collection agency by me as a non resident.
1 Answer from Attorneys
You will likely need a general business license everywhere that you conduct business.
Aside from that, there is no federal license or registration required for collection agencies. However, in some states debt collectors must register or apply for a state license. Licensing requirements vary from state to state. Many states also require collection agencies to be bonded. In some states, such as California, there may have been prior requirements for licensing of collectors, resulting in state regulations being retained on the books of the state even after the regulatory agency has been disbanded. These regulations may provide additional details and support for legal arguments of what is considered proper. To learn more about the licensing and bonding requirements for collection agencies operating in your state, link to your state's collection law through Attachment A, www.privacyrights.org/fs/fs27plus.htm. If your state is not listed, contact your state's attorney general through the National Association of Attorneys General web site, www.naag.org.
You may also contact your state's consumer protection office through the federal government's Consumer Action web site, www.consumeraction.gov/state.shtml.
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