In the collections industry paperwork, requirements and deadlines are a big part of the business. Compliance is key to remaining in good standing. We’re often asked about the difference in annual reports and license renewals.
First, we need to define both.
Annual Reports renew your certificate of authority registrations with each Secretary of State. These filings contain specific corporate information and must be updated each year (or two) to remain compliant.
License Renewals and the miscellaneous supplemental filings are the filings necessary to keep your debt collection licensing in good standing. If proper renewals are not filed, an agency will lose their ability to collect debt.
The primary difference is Annual Reports are filed with the Secretary of State while the License Renewals are filed with the appropriate licensing board allowing you to continue the business activity for which they were issued. Both of these actions are indeed required to remain compliant and in business. It’s important to submit both completed renewal applications and annual report applications to the appropriate state department in a timely manner along with all required documentation requested by the states.
Annual Reports are filed with the Secretary of State while the License Renewals are filed with the appropriate licensing board allowing you to continue the business activity for which they were issued.
Collection agency registrations and licenses are not a one-time filing! Renewal filings are due, in most cases, yearly with some occurring every few years. The complexity of compliance in part comes from deadlines. License Renewals happen at different times for each state and may have to be filed in multiple parts Many states have supplemental filings as well that if not filed, the underlying collection agency license is lost. Annual Reports also have deadlines separate and apart from the License Renewals. Not only do you have to be registered and licensed, you must also be up to date with renewal filings to collect debt. Additional complexity is added by way of states continually changing statutory regulations and application requirements making it difficult to stay informed. Let us not forget the importance of change notifications as well. When changes to your corporate structure occur (officer, collection manager, address, ownership etc.) there are statutory guidelines which must be met in order to avoid penalties, fines and loss of licensure.
Having trouble keeping up? We know it’s complicated. That’s why we’re here to help! Let us handle the renewals, deadlines and annual reports for you.