# Do I need a license to start a debt collection agency? *Reviewed 2026-05-15* ## Short answer In most states, yes. A company that collects past-due accounts for others generally needs a state collection-agency license, and many states also require a surety bond before they issue it. A handful of states do not license collectors, so the requirement depends on where you operate. Debt collection is regulated state by state. The common pattern is a [Collection agency license](/glossary/collection-agency-license) issued by the state's financial or commerce regulator, paired with a [Surety bond](/glossary/surety-bond) whose amount the state sets. Some states add separate categories for [Debt buyer](/glossary/debt-buyer) firms, who purchase accounts and collect on balances they now own. Because most agencies collect across state lines, the practical task is tracking every state where you contact consumers, then holding the right license and bond in each. Federal rules under the [FDCPA](/glossary/fdcpa) apply on top of state licensing, not instead of it. ## Related - [Debt collection licensing services](/services) - [State licensing summaries](/state-laws) - [Talk with our team](/contact)