Industry and Occupational Licenses: When Are They Required?

Architecture

All 50 states require architects to be individually licensed. The requirements vary by state, but generally include earning a B.A. in architecture, obtaining work experience, and passing the U.S. Architect Registration Exam. Additional exams and applications are required in each state where the architect plans to practice, with fees ranging from $377 to $560. More than half of states further require architectural firms to obtain certificates of authorization. Licenses are subject to renewals, and most require continuing education.Read the Detailed Requirements for Architects

Construction

A total of 35 states require construction firms to register with the board of state contractors and obtain a firm license. Following registration with the secretary of state, firms are usually categorized based on the types of work they do. Contractors are also licensed individually in trades such as plumbing, electrical, HVAC, mechanical, and general contracting based on education and passage of qualifying exams. Specific licensing requirements vary widely from state to state, with many requirements based on the cost of the contract and whether the project is commercial or residential. Many cities and municipalities impose additional licensing requirements of their own. Licensing fees in construction range from $30 to $1,050.

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Engineering & Land Surveying

Every state in the U.S. requires engineers and surveyors to be licensed to practice. Each state board has unique requirements, but engineers are generally required to have a B.S. in engineering and pass two licensing exams to be certified as a professional engineer (PE). Surveyor qualifications also include an education component as well as two surveying exams and a state-level exam. Most states also require engineers and surveyors to complete four years of work experience. Engineering firms may be further required to obtain certificates of authority from the state. Licensing fees range from $50 to $373.

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Financial Services

Financial service providers encompass the banking and insurance industries as well as non-bank financial institutions such as credit card companies, payroll administrators, mortgage brokers and financial advisors. Not surprisingly, the licensing requirements for each of these financial industries vary.

Accountants must be licensed in every state where they practice, with licensure based on education, passage of the Certified Public Accounting exam, and work experience requirements. Accounting firms must also be licensed by each state.

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Insurance

Insurance companies, agencies, and individual agents must be licensed to practice in each state where they provide services. Individual agents and other insurance professionals such as adjusters must complete education requirements and pass a licensing exam. Many states also require background checks and fingerprints. Insurance agencies as well as firms providing insurance-related services such as title insurance must further obtain firm licenses. In addition, insurance companies are tightly regulated and licensed by state departments of insurance.

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Healthcare

The healthcare industry is closely regulated, with licensing required in every state for individual practitioners as well as medical manufacturers and distributors. For medical professionals, licensing involves extensive schooling and clinical training as well as passing national qualifying exams. Individuals must apply for licensure in each state where they wish to practice, although some states have recently begun to grant reciprocal practice rights. Licenses must be renewed in cycles ranging from 1 to 3 years, and continuing medical education is usually required for medical professionals.

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Pharmaceuticals

All 50 states require pharmacies, pharmaceutical wholesalers and distributors, and individual pharmacists to be licensed, with violations carrying hefty fees and even criminal charges. Upon registration with the secretary of state, licenses are divided by the type of pharmaceutical services provided. For example, New Mexico has 14 different types of licenses covering everything from animal hospitals to drug treatment facilities. Requirements vary by state, but many include registering with the U.S. Drug Enforcement Administration and submitting to periodic inspections. Fees for licensure range from $75 to $900.Learn More About Pharmacy Licensing

Real Estate

State licenses are generally required for real estate agents, brokers, appraisers, property managers, auction services, escrow agencies, and other real estate professions. Realtors and brokers must complete an education component and pass the corresponding state exam. In 41 states, firm licenses are also required for real estate agencies, and additional licenses may be required for separate branch offices.

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Transportation

The transportation industry is highly regulated by state departments of transportation and numerous federal agencies. Interstate carriers of people and goods must typically apply for a department of transportation (DOT) number, and 32 states also require carriers operating within state lines to acquire a DOT number. In addition, interstate carriers are generally required to apply for a Federal Motor Carrier Safety Administration number and to appoint a Form BOC-3 process agent. All states require interstate carriers to hold a Unified Carrier Registration Agreement (UCRA) license, International Registration Plan (IRP) registration, International Fuel Tax Agreement (IFTA) registration, and a commercial driver’s license (CDL). Additional licenses apply to individual operators, and most transportation requirements require frequent renewals.