Alameda, CA asked in Banking, Business Formation and Business Law for California

Q: Hi, which licenses are needed for a business that holds customers money in accounts that they can access across country?

At first I thought a money transmitter license was needed, but since no money is sent on behalf of the user to someone else, and instead it’s just them withdrawing/depositing in other areas, it doesn’t seem that is needed. ThankS!

1 Lawyer Answer
Robert Lopez
Robert Lopez
  • Business Law Lawyer
  • Irvine, CA
  • Licensed in California

A: Hi, every state is going to have a different law and most will require a slightly different type of license. The most common type of license is a "money transmitter" license. Most, but not all, of these licenses are regulated by each state's Department of Banking Department/Division. Others will be regulated by that state's Attorney General's office. The actual names of the departments/divisions will vary in each state. The cost of each license will also vary, but it may cost you somewhere between $35,000 to $80,000 to achieve a nationwide properly licensed company. If that cost is within your range, contact me.

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