Alabama Collection Agency Licensing Requirements:
License Required:
General business license required
Surety Bond:
None
Licensing Fees:
License tax, $38.50-$151. Whenever a license is levied, there shall be collected both a state and county license for each place of business, the sum of which is 50 percent of the state license amount.
Exemptions:
The Alabama Department of Revenue Sales, Use and Business Tax Division interpreted Alabama’s collection agency licensing statute to mean: An out-of-state collection agency, soliciting accounts by letter and/or phone only, with no agents in Alabama, does not need a license to collect.
If an out-of-state agency employs any agents in the state, they would need a license. An agent can include, but is not limited to, an employee of the agency, an attorney license in Alabama on retainer or retained on a special case-by-case basis, another agency located in Alabama acting on the out-of-state agency’s behalf or anyone located in Alabama acting on behalf of the out-of-state agency.
Contacts:
Alabama Dept. of Revenue, Sales Use & Business Tax Division
Secretary of State, Corporation Division
License Required:
General business license required
Surety Bond:
None
Licensing Fees:
License tax, $38.50-$151. Whenever a license is levied, there shall be collected both a state and county license for each place of business, the sum of which is 50 percent of the state license amount.
Exemptions:
The Alabama Department of Revenue Sales, Use and Business Tax Division interpreted Alabama’s collection agency licensing statute to mean: An out-of-state collection agency, soliciting accounts by letter and/or phone only, with no agents in Alabama, does not need a license to collect.
If an out-of-state agency employs any agents in the state, they would need a license. An agent can include, but is not limited to, an employee of the agency, an attorney license in Alabama on retainer or retained on a special case-by-case basis, another agency located in Alabama acting on the out-of-state agency’s behalf or anyone located in Alabama acting on behalf of the out-of-state agency.
Contacts:
Alabama Dept. of Revenue, Sales Use & Business Tax Division
Secretary of State, Corporation Division