C+S January 2018

CONTINUING EDUCATION

Managing engineering firm licenses Understand requirements in each state and how they dovetail with your operations. By Jerri-Lynn Wier

This article provides an overview of state requirements with a focus on areas that frequently cause problems for large and growing firms, such as registering in new states, gaining board approvals, having the right staff in place, corporate structure and ownership considerations, naming concerns, and the order in which everything needs to be accomplished. It concludes with tips for managing licenses across multiple jurisdic- tions to help firms realize the bottom-line benefits of proactive license management. Register with the state To begin operations in a new state, firms need to register with the SOS to gain authority to transact business, among other requirements (www.har- borcompliance.com/landing-pages/understanding-business-licensing). In 37 states (www.harborcompliance.com/information/engineering- license), firms must also apply to the state board of engineers for a firm license. States that don’t require engineering firm licenses include Colo- rado, Hawaii, Iowa, Maine, New Mexico, Oregon, Utah, and Vermont, plus the District of Columbia.

There are three layers of state licensing that impact engineering firms — secretary of state (SOS) registrations, professional engineer licenses, and engineering firm licenses. Because each state has different require- ments, managing firm licensing can feel like a moving target, one de- signed to trip you up, tie your staff in knots, and eat away at your bottom line. But it doesn’t need to be that way. By understanding the require- ments in each state and how they dovetail with your operations, your firm can turn licensing into a source of competitive and financial gain.

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january 2018

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