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Engineering firms have regulatory hurdles to clear at every phase of their development.
Our software and fully managed services for engineering
firms provide the resources you need to reduce risk, reclaim staff hours spent on government paperwork,
and capture more opportunities. We efficiently manage the registrations, filings, and renewals needed
to maintain good standing across the US.
Overview of Engineering Firm Licensing Requirements
When expanding into new geographies, firms quickly find that
what works in one state often doesn’t apply in the next. Perhaps their name cannot be registered
in a new jurisdiction, or their present ownership is unacceptable, or their corporate structure
is not allowed. Or they submit an application only to find that the new state follows a
different process and they’ve missed a prerequisite, sending them back to the beginning.
Maintaining licenses and good standing throughout their
existing footprint presents further challenges, including license renewals, tracking continuing
education credits, coordinating COAs and qualifier licenses, and maintaining accurate records
with state authorities. Any disconnect between these disparate aspects of compliance can
jeopardize the firm’s licensing and ability to perform.
Many of these nuances are not captured in state websites, leaving firms to uncover them through
a slow process of exploration and discovery. This can tie up significant staff time and even
impede performance and growth.
For example, when entering a new state, firms must register with the secretary of state to do
business as an out-of-state or “foreign” firm. In 34 states, firms must also apply for a COA through the state engineering licensing board.
In 8 additional states, firms must complete requirements other than licensing before offering services. (Some
of these requirements can be every bit as time-consuming as a full-blown license application,
so don’t assume lack of a license equates to easy entry).
Since firms must generally obtain COAs before offering services in a state, the timeline to
licensing is critical to business development. Yet at the time of this writing, obtaining a COA
can take anywhere from 4 to 22 weeks, depending on the state.
Add to this the fact that some jurisdictions are rejecting as many as 4 out 5 applications for
minor paperwork missteps, and you begin to see the complexity of the regulatory landscape
engineering firms must navigate at each stage of the corporate lifecycle.
The following highlights areas that most commonly trip up engineering firms managing licensing
across multiple jurisdictions. In addition to researching the requirements thoroughly, you can
take advantage of our full range of AE
compliance solutions, from purpose-built software to expert services to make the task easier.
Entering New States
When evaluating opportunities in new jurisdictions, it’s important to check requirements
concerning the following:
Order of Operations
In most states, registration with the SOS precedes firm licensing. Yet in a few states, firms
must receive approval from the engineering licensing board before registering with the SOS.
It’s important to research the order of steps in a new state before beginning any applications.
Name Requirements
In some states, engineering firms must include some form of the word “engineering” in their
names, while in others, firms are subject to additional requirements if their names contain
such as reference. As a result, firms often need to adopt fictitious names to operate in new
states.
Corporate Structure
Engineering firms are required to form under a specific structure in many states. For example,
in Vermont, engineering firms must form as professional corporations (PCs) or professional
limited liability companies, while in New Jersey, out-of-state engineering firms are forbidden
from forming a PC. For this reason, corporate structure should be examined early and carefully
when contemplating a new jurisdiction.
Ownership and Management Requirements
Another area to consider when licensing an engineering firm in new geographies is ownership and
management. Many states require firms to have a specific share of ownership by licensed
engineering professionals. In New York, which is one of the more stringent states for
engineering firms, all partners must be licensed in New York. In other states, licensed
engineers must hold specific management positions in the firm. Because of these requirements,
firms may need to form a new entity under a different mix of owners to work in a particular
state.
Design Firm Licenses
Some states combine the applications for engineering with other AE disciplines into a single
design firm application. Illinois, for instance, uses a general design firm application for
architecture, land surveying, professional engineering, and structural engineering.
"Harbor Compliance has our backs. They make everything so easy. In the middle of this
exciting and stressful time, I know the licensing aspect will not be stressful."
Valerie Craft Mitchell, CEO, Craft Electric
Maintaining Compliance
Once licensed, firms must work to maintain COAs, licenses of individual qualifiers, and good
standing of their entity in each state.
License Renewals
Most COAs must be renewed every one to two years. If your firm has been disciplined by any state
licensing board, this must usually be disclosed in renewals. In addition, firms should track
renewals of individual engineer licenses, particularly for engineers in responsible charge.
Since renewals require continuing education (CE), it’s important for firms to have a system in
place for tracking CE credits and reminding engineers of upcoming renewal deadlines.
Maintaining Accurate Records
Firms must also maintain accurate records with state agencies. If an engineering firm wants to change its name, there are multiple steps it must take to ensure it remains in compliance with state requirements.
Typically, firms must notify the engineering board to change their names or addresses and fill out a new certificate of authorization or change forms, depending on the state. Many firms don't realize that if they change their name, they must first register the change with the Secretary of State. Interestingly, prior approval from the engineering board is required in some states.
In terms of steps, most engineering firms can expect the following when changing their business name:
Research the new name to ensure it is available with the U.S. Patent and Trademark Office.
Notify the Secretary of State via applicable paperwork and pay any required fees.
Update licenses and permits to reflect the new business name.
Notify the IRS of the change - note the process varies depending on the type of business.
Apply for a new EIN to ensure all tax documents are correct.
Update business documents with the new name to ensure branding is consistent.
Inform customers of the name change and let them know you are still open for business.
Tracking Qualifier Licenses
In addition, firms must be vigilant in tracking the licenses of qualifying engineers and promptly
reporting changes in their information or status to state agencies. If a qualifier leaves, the
firm has a limited time to appoint a replacement or risk forfeiting the COA. Because most firms
lack software to connect COAs and qualifier licenses,
this is a major source of inadvertent unlicensed activity within the industry.
Branch Office Registration
In some states, branch offices must be registered individually with the secretary of state. Some
states require an engineer in responsible charge for each branch location. In addition, it’s
important to accurately document which branch offices and associated engineers will be providing
services on a particular contract and ensure that they are properly licensed according to the
requirements of the state where the work is being done. This is another area that frequently
trips up multi-state firms.
Corporate Lifecycle Filings
In addition to managing COAs and qualifier licenses, engineering firms must maintain good
standing in each state by maintaining registered agent service and submitting annual reports
and other corporate lifecycle filings. Deadlines vary with each jurisdiction, so firms need a
reliable means for tracking deadlines and alerting staff
of upcoming due dates to safeguard their good standing.
Streamline Paperwork and Eliminate Risk
For engineering firms, licensing and entity management will always be complex. But with the right
technology and support, your firm can navigate these complexities with confidence, agility,
and efficiency. Our software and fully managed services
for engineering firms provide the resources you need to reduce risk, reclaim staff hours spent
on government paperwork, and capture more opportunities.
Annually by the initial registration anniversary date. Renewals can be filed as early as 30 days prior to the expiration date.
Agency
Arizona State Board of Technical Registration
Initial Application
Fee:
$50
When paying for the initial registration through the online payment portal, use five zero's as the firm's registration number to complete the payment. A final registration number will be assigned after the application has been processed.
Biennially by December 31. Licenses ending in even numbers must be renewed every even-numbered year, and licenses ending in odd numbers must be renewed every odd-numbered year.
Engineering Firm licensure is not required on the State level in Colorado
Engineering firms are not licensed at the state level in Colorado. Business entities are permitted to practice engineering provided that they comply with CO Stat. § 12-25-104.
Engineering Firm licensure is not required on the State level in District of Columbia
Firm licenses are not issued at the state level, however, a licensed individual must oversee all engineering work. Firms should consult board rules and state statutes before doing business.
Engineering Firm licensure is not required on the State level in Hawaii
Engineering firms are not licensed at the state level in Hawaii. Business entities are permitted to practice architecture provided that they comply with HAR § 16-115-4.
Mail your completed application, fee, and support documents to:
Illinois Department of Financial and Professional Regulation, Attn: Division of Professional Regulation, Design/PSS4 P.O. Box 7007 Springfield, Illinois 62791
Engineering Firm licensure is not required on the State level in Indiana
Indiana does not issue firm licenses at the state level and no longer requires professional corporations to obtain a certificate of registration before incorporating.
Engineering Firm licensure is not required on the State level in Iowa
Firm licenses are not issued at the state level, however, a licensed individual must oversee all engineering work. Firms should consult board rules and state statutes before doing business.
Business Entities with names beginning with A-L renew by December 31 in even-numbered years; M-Z renew by December 31 in odd-numbered years.
Renewals can be filed as early as 60 days prior to the expiration date. There is a grace period from January 1 to March 1 where no penalties are issued for late filing.
Biennially by December 31. Licensees initially licensed in an even-numbered year renew every even-numbered year. Licensees initially licensed in an odd-numbered year renew every odd-numbered year.
Licenses originally issued in even-numbered years expire on December 31 of each even-numbered year and licenses originally issued in odd-numbered years expire on December 31 of each odd-numbered year.
Renewals may be filed as early as 3 months prior to the expiration date.
Biennially by June 30. Firms whose name begins with letters A-G renew during even-numbered years and firms with H-Z names renew during odd-numbered years.
Engineering Firm licensure is not required on the State level in Oregon
Firm licenses are not issued at the state level, however, a licensed individual must oversee all engineering work. Firms should consult board rules and state statutes before doing business.
Engineering Firm licensure is not required on the State level in Pennsylvania
Pennsylvania does not license firms, but requires that engineering companies have at least one licensed engineer on staff. Name registration is required for firms with some form of "Engineer" in the name. You must receive board approval prior to foreign qualification.
Engineering Firm licensure is not required on the State level in Utah
Firm licenses are not issued at the state level, however, a licensed individual must oversee all engineering work. Firms should consult board rules and state statutes before doing business.
Engineering Firm licensure is not required on the State level in Vermont
Firm licenses are not issued at the state level, however, a licensed individual must oversee all engineering work. Firms should consult board rules and state statutes before doing business.
Wisconsin Examining Board of Architects, Landscape Architects, Professional Engineers, Designers, Professional Land Surveyors, and Registered Interior Designers
By December 31 of the year following initial licensure and biennially thereafter.
Key Terms
Design Firm - Engineering firm registration is sometimes grouped with architecture and land surveying on a single “design firm” application form.
EI (Engineering Intern) - A term also used to describe an Engineer in Training.
EIT (Engineer in Training) - A professional designation granted upon having completed at least 3 years of school at an ABET-accredited university and having passed the FE exam.
FE (Fundamentals of Engineering) - An exam testing on basic engineering principles that is required to become an engineer in training.
PE (Professional Engineer or 'Principles and Practice in Engineering') - Means either Professional Engineer or refers to the Principles and Practice in Engineering exam that is a prerequisite for an engineering license.
Reciprocity - When a licensed engineer in one state can provide documentation (often an NCEES Record) to more easily apply for a license in another jurisdiction.
American Society of Civil Engineers (ASCE) Organization that provides continuing education, professional conferences, and advocacy efforts to the civil engineering community.
Filing fees depend on your individual situation. We do our best to calculate your filing fees
upfront and collect those fees today so we can get started. Your specialist will determine your
exact filing fees and invoice additional fees if required.