I was overjoyed to know that someone else could take care of state, county, town and city business license applications. Very professional company to work with.
Office Manager, C & R Carpentry Inc.
Very responsive and seems this will be a great resource to build a relationship with. Both specialists I spoke with were confident, informative and very professional.
M Communications LLC
Collection agency licensing overview

The first step for a new debt collection agency is to become fully licensed in any state where the agency plans to collect debts from state residents. 

The application process generally takes about three months. Common application requirements include reference letters, samples of collection letters, and lists of all collectors/employees of the agency.

Background checks are a typical part of the collection agency licensing process and many states require the agency be bonded against loss. Some licenses require a physical office in the state and a resident manager. Other states require that the manager of the agency take a state examination.


Frequently asked questions

  • Is it difficult to get a collection agency license?

    Many states license debt collection agencies to protect the public from abusive practices and to create minimum standards of operation. The licensing process is often rigorous, time consuming and challenging to navigate. Obtaining a collection agency license is easier when you let the experts at CT Corporation guide you through the process.

    A new debt collection agency needs to become fully licensed in the domestic state of the agency. Licenses are generally required when an agency plans to collect debts from residents of a particular state. The application process may require reference letters, samples of collection letters, and lists of all collectors/employees of the agency as well as background checks and fingerprints. Every application is different and all regulatory agencies reserve the right to request further information from the applicant. This is why it is important to let CT Corporation manage the process of obtaining your collection agency license.

    We can help you obtain all the licenses and registrations you need, as well as help with business license research. For additional help please contact CT Corporation to consult a licensing specialist.



  • Once a Collection Agency is licensed, how do they maintain compliance?

    Licensed Collection Agencies have numerous recurring reports and renewal events that must be filed in order to remain compliant. Most Collection Agency Licenses renew annually or biennially. To ensure compliance, licenses must be renewed on time with the appropriate fees. Some renewal applications must be filed 30 or 60 days prior to a license expiration date. In addition to license renewals, some states have an annual financial reporting requirement. The purpose of the annual report is to provide the licensing department with an account of the agency’s activities in the state.

    Collection agency license renewal and annual reporting requirements vary by state and due dates are spread across the calendar. For example, Alaska Collection Agency licensees have biennial renewals due in June every other year and annual reports due in January. Wisconsin Collection Agency licensees have annual renewals due in June and annual reports due in March. Idaho Collection Agency licensees have annual renewals and require quarterly reports.

    Collections Agencies also must remain in good standing with the state in which they are licensed, renew all surety bonds in a timely manner, and be sure to update the appropriate government agency of any important changes to the business and its structure, such as address, name, officer or ownership changes.

    CT Corporation will help collection agencies obtain all licenses and registrations, minimizing time-consuming and costly delays. We can also manage ongoing compliance by filing all renewals and annual reports. For additional help please contact CT Corporation to consult a licensing specialist.

  • Do collection agencies that change ownership/officers need a new license?

    Many factors contribute to whether a collection agency must obtain a new license, if owners or officers of the collection agency change. Although collection agency licenses are generally not transferable or assignable, the requirement of a new license is heavily dependent on the extent to which the organization has changed. In some jurisdictions, a new license is required if ownership has changed by a certain percentage. That percentage can vary from 10 - 51 percent. Other jurisdictions only require a new license if the EIN has changed.

    If a collection agency license that changes ownership does require a new license, the existing license will need to be cancelled or surrendered. This cancellation process varies by jurisdiction.

    A number of jurisdictions do not require a new license, but do require amendments to the existing license detailing new ownership structure, name changes, and address changes, as well as new officers, and/or controlling individual information, etc. Some of these requirements can be nearly as rigorous as the initial application process. For example, Wisconsin requires: proof of surety company notification of new ownership, financial statements, purchase agreements, resumes and criminal background reports for each new officer, along with various supporting legal and organizational documents.

    Another issue to consider when changing the ownership of a collection agency is what the reporting requirements are for the State business entity registration with the Secretary of State or Department of State. Some of these reporting requirements may vary from updating ownership, officer, and address information on the next annual report, while other jurisdictions may require an immediate update of the information by amending the current entity registration. In order to remain compliant and avoid costly penalties, CT Corporation will help you determine whether a new license is needed, and if not, what the requirements are for maintaining your current license. Please contact CT Corporation to consult a licensing specialist.

  • What are the licensing requirements to become a roofing contractor?

    The construction industry is one of the most heavily regulated in the United States, and this is no less the case for contractors working in specialized fields. Each state has unique contractor licensing laws, specialty classifications, and specialty contractor application requirements.

    The threshold question that must be addressed is whether the roofing contractor intends to do residential and commercial work. For example, the Minnesota Department of Labor and Industry requires that residential roofers be licensed with the state by filing a Residential Roofer New License Application. On the other hand, Minnesota does not license commercial roofing contractors at the state level; they must be licensed at local level.

    Currently, 32 states require licensure for residential and/or commercial roofing contractors at the state level. The remaining 18 require licensure at either the state, county and/or municipal level. A state could hypothetically require licensure at two levels, or all three. For example, the Idaho Bureau of Professional Licensing requires roofing contractors to file an Application for a Business Entity Contractor Registration. Additionally, the city of Idaho Falls requires roofing contractors to file an Application for Building Contractor License. Similarly, roofing contractors must file a Building Department License Application with the city of Pocatello.

    Other requirements to become a roofing contractor may include, but are not limited to: (1) proof of worker’s compensation insurance, (2) proof of unemployment insurance, (3) proof of liability and property damage insurance, (4) proof of passage of residential, commercial and/or industrial examinations, (5) submission of a surety bond, (6) the designation of a qualifying party and/or construction supervisor license and (7) copy of Articles of Incorporation or Partnership Agreement.

    CT Corporation will navigate the maze of state, county and municipal licensure requirements for roofing contractors, as well as manage all ongoing license renewals to ensure continuity in compliance. For additional help please contact CT Corporation to consult a licensing specialist.


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