Q: Buying a LLC that has licenses for collection agency. Will I need to reapply for all the licenses it already has?
What happens if I purchase an existing company that has Certificates of Authority and Collection Licenses (including fingerprints and disclosures for states that require them) in many states? Will all the licences still be valid even though they had the name of a different manager on them? Or will I need to reapply for all the licenses from scratch? If I need to reapply, how soon do I have to do that? Am I allowed to collect debts on the basis of the licenses of the company I am purchasing?
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A: The question is extremely difficult to answer since you'll need to look into the laws of each state. Most states however have a provision for any license to be assigned without the necessity of starting from scratch, it's usually a more limited form that includes the assignor information, assignee information, etc. When you are buying the LLC make sure that the seller represents that the licenses are in good standing, that he has authority to transfer them, and that he will provide assistance and support in ensuring that the licenses get assigned to any new entity or that they continue to be in effect post-closing.
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