How much does it cost to start a debt collection company for the sole purpose of buying bad debt? Are there legal documents, equipment, etc

The cost of starting this type of company varies depending on different parameters. An individual should consider the following;

1. If the company will be a single-state, multiple-state, or a nationwide collection agency. The agency's size determines its cost since the cost of licensing also varies.
2. If the debt collectors that will be hired would be experienced. Experienced collectors demand higher pay.
3. Will the business start from home or a rented commercial office?
4. The type of liability insurance that would be needed by the business.
5. The cost of a website since the website can enable customers to make online payments.
6. An estimate of the cost purchasing portfolio.

The company may require a minimum of $50,000 or more to cater for all the costs.

There are various legal documents required to run the business. They include business license and permit, although not all states require a license for an agency collecting debt in that state. Other documents include a tax identification number, insurance policy, business plan, operating agreements, certificate of incorporation, and contract documents.