FAQs Concerning Business Model Legal Opinions

I receive many calls from fintech business owners who wish to engage in regulated financial activities and serve customers throughout the United States. Many assume that a single phone call can provide a complete legal opinion identifying which licenses or registrations are required and whether their business model qualifies for any exemptions.

However, to engage my law firm for a business model legal opinion, the firm must first receive:

• A signed attorney fee agreement, and

• An hourly billing retainer (initial deposit), quoted based on the scope of services

required, and replenished when depleted.

I provide legal opinions primarily concerning financial regulatory licensing, as well as real estate and auto dealership licensing. I do not provide free consultations, legal advice, or legal services before the firm is fully retained. Legal opinions are not provided through phone “chats” or verbal conversations. They are issued in writing only, after:

1. A detailed examination of your business model through back and forth emails, 2. Review of all relevant documents, and 3. Establishment of the factual business model.

Once the business model facts are established, I conduct legal research on applicable federal and state laws and regulations and then issue a written legal opinion applying the law to those facts.

Can I schedule a paid (or unpaid) phone consultation to determine whether my business model requires licenses and/or registrations in the state(s) where I operate, the state(s) where my customers reside, and/or under U.S. federal law?



Each U.S. state has its own financial regulatory licensing, registration requirements,laws, and regulations.

These include, without limitation:

• Money transmission

• MSB activities

• Currency exchange

• Escrow

• Bill payment

• Lending

• Loan brokering

• Loan and financing origination

• Lead generation

• Consumer and commercial credit

• Consumer and commercial financing

• Credit repair

• Debt collection

• Debt relief

• Check cashing

• Deposit taking

• Banking

• Securities

• Commodities

• Investments

• Virtual currency

• Pawnbrokers

• Secondhand dealers

• Other financial regulatory categories

1. State by State Financial Regulation

States may use different terminology or license/registration titles for similar activities.



2. Federal Requirements

In addition to state requirements, certain U.S. federal licenses, registrations, and regulations may also apply.

I do not provide legal services regarding licensing, permits, registrations, or compliance in countries outside the United States. Please consult a financial services regulatory attorney in each such country.



3. International Matters

Once my law firm is engaged and fully retained to provide a business model legal opinion, the services typically include:

4. Scope of Services After Engagement

a. Review of the client’s proposed transactions and documents to determine

required financial regulatory licenses, including:

• Communications with the company’s officers, directors, or managers

• Establishing the factual business model

• Conducting legal research and applying the law to the established facts

• Providing a written legal opinion regarding whether the proposed or actual transactions require licenses or registrations in any of the 50 U.S. states (where the business operates or serves customers) and/or under federal law

• Answering related client questions

(collectively, the “50 State Financial Licensing Opinion Services”)

b. Compliance Considerations

i. If a state requires a license or registration: Your business must obtain the required license(s) or registration(s) before engaging in regulated activities. Obtaining the license is only the first step. Your business must also comply with all applicable state and federal laws, regulations, disclosures, and documentation requirements. Compliance services are available under a separate engagement.

ii. If a state does not require a license or registration: Your business must still comply with all applicable laws and regulations in that state. Proper documents, disclosures, and compliance practices are still required. Compliance services are available under a separate engagement.

Obtaining a legal opinion covering licensing and registration requirements in all 50 states is very expensive. However, retaining a financial regulatory attorney is strongly advisable to avoid operating without required licenses or registrations, which may expose your business and its principals to civil, administrative, and criminal liability. If your business does not have the budget for a full 50state opinion, you may choose to operate only in one or a few states. In that case, you can retain an attorney to provide a legal opinion for those specific states and applicable federal law (and potentially assist with licensing, registration applications, and compliance). As your business becomes profitable and seeks to expand into additional states, you can then, on behalf of your business/company, retain an attorney to provide further legal opinions and licensing/compliance services for those additional states.

Cost and Practical Considerations

The information on this page is provided for general informational purposes only and does not constitute legal advice. No attorney-client relationship is created by reading this content. Every legal matter is unique, and you should consult directly with a qualified attorney regarding your specific circumstances.

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