Legal Question in Business Law in California

Can I ask for a percentage of monies owed my friend, If I help him get it?

Hello:

Can I ask for a percentage of monies owed my friend, If I help him get it?

I guess It is called selling information.......Do I have to have a business licence if I help other people get information?

I would only be charging them a percentage to cover my cahrges to help them.This is only monies OWED to them.......Not money I am lending.

(I live in California)

Thanks,

Chris


Asked on 1/04/02, 8:54 pm

2 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Can I ask for a percentage of monies owed my friend, If I help him get it?

Yes, you can ask, but that doesn't mean necessarily that you'll receive.

The business of selling information is treated very much like any other selling business, and you will have to learn about and follow all the usual business laws, including local licenses. One major difference, however, is that pure information (as opposed to books, etc. containing information) may not be subject to sales tax.

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Answered on 1/04/02, 11:16 pm
Ken Koenen Koenen & Tokunaga, P.C.

Re: Can I ask for a percentage of monies owed my friend, If I help him get it?

What kind of information are you "selling?"

Are you searching around to find assets of someone, or making phone calls to the debtor? You may be acting as a collection agency, which is regulated by state and federal laws. You could be acting as a private investigator, which also has regulations.

Invasion of privacy or slander can become an issue. Be careful.

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Answered on 1/05/02, 12:52 pm


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