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Collection Agency
Any business involved in collecting a debt on behalf of a debt owner, or collecting a debt you have purchased from another person ('debt buyer,' see definition), and either you, the debtor, or the debt owner are located in Washington, you must have a Collection Agency endorsement and be licensed in Washington.
Note: The law clarifies that collection agency licensees are prohibited from engaging in the unauthorized practice of law. See Department of Licensing for more information.
- You cannot begin business activity until you receive a business license listing the required endorsement.
- Washington is a closed-border state. You must have a license before contacting debtors or soliciting clients in Washington.
In-state Collection Agency endorsement
Required if your main office is in Washington state or your main office is outside of Washington state and you have, or plan to have, clients located in Washington state.
Licensing requirements and additional supporting documents
- Business License Application (PDF).
- Collection Agency, Branch Office, and Out of State Collection Agency Addendum (PDF).
- Business Financial Statement (Chrome users: download this form before use, or try another browser) showing all the following:
- Liabilities and assets of the agency in one of the three months prior to application.
- For example, if you apply in May, we will accept a financial statement for either February, March, or April.
- $7,500 or more in cash or its equivalent ($5,000 of the cash must be deposited in a bank account used to operate the business).
- Equity, or net worth, of $7,500 or more.
- Liabilities and assets of the agency in one of the three months prior to application.
- Collection Agency or Out-of-State Collection Agency Surety Bond (PDF) completed by your insurance company. The insurance must attach their power of attorney form to this form.
| State endorsement | Fee |
|---|---|
| Main location in Washington | $890 |
| Main office re-registration (license expired over 30 days) | $1405 |
| Each additional location (branch) in Washington or out-of-state | $590 |
| Branch office re-registration (license expired over 30 days) | $930 |
Out-of-state Collection Agency endorsement
Required if your main office and all branch offices are located outside of Washington state, you do not have any clients located in Washington state, and you’re contacting debtors in Washington state who owe money to your out-of-state clients.
Licensing requirements and additional supporting documents
- Business License Application (PDF).
- Collection Agency, Branch Office, and Out of State Collection Agency Addendum (PDF).
- Business Financial Statement (PDF) (Chrome users: download this form before use, or try another browser) showing all the following:
- Liabilities and assets of the agency in one of the three months prior to application.
- For example, if you apply in May, we will accept a financial statement for either February, March, or April.
- $7,500 or more in cash or its equivalent ($5,000 of the cash must be deposited in a bank account used to operate the business).
- Equity, or net worth, of $7,500 or more.
- Liabilities and assets of the agency in one of the three months prior to application.
- Collection Agency or Out-of-State Collection Agency Surety Bond (PDF) completed by your insurance company. The insurance must attach their power of attorney form to this form.
- To get an Out-of-State Collection Agency endorsement, you must do the following:
- Obtain a trust account.
- Make a list of persons with more than 20% interest in the business.
| State endorsement | Fee |
|---|---|
| Main location outside Washington | $445 |
| Each additional location (branch) | $295 |
| Additional fees | Fee |
|---|---|
| State tax registration | $0 |
| Registering your business name as a trade name | $5 |
| Business License Application fee | Variable fee |
How to apply
Apply online
Add a state endorsement to your business
Apply for a new business license
Online help
Setting up your business licensing and tax account
How to add a state endorsement
Apply by mail
Complete the licensing requirements above and mail to:
P.O. Box 9034
Olympia, WA 98507-9034