Five additional states impose requirements other than licensing such as registration, name approval, or other records to be filed. In California, for example, firms must file an Organization Record following precise specifications and register every engineering branch office under owner- ship of a licensed engineer, a process that can wind up being every bit as complex as a state license. In Tennessee, firms must file a disclosure showing that a Tennessee-licensed engineer oversees services. In Michi- gan, firms must receive board approval, while Pennsylvania firms must do so only if their names include “engineer” or “engineering.” In Mas- sachusetts, firms may need to file a regulatory board certificate with the SOS before forming a professional entity. In all, 42 states impose some license or registration requirement on engineering firms. Order of operations Each professional board has unique requirements and a set process for li- censure. In some states, including Idaho, NewHampshire, NewYork, North Carolina, and Rhode Island, firms must receive board approval before reg- istering with the SOS, while in most states, the order is reversed. For this reason, it’s important to review SOS and board requirements together before beginning any applications to prevent delays or rejected filings. Engineer in responsible charge In all 50 states, a firm must have a licensed engineer on staff. Where firm licenses are required, the firm must appoint a licensed engineer in responsible charge for all services provided by the firm. In some states, if the firm has branch offices, those must be registered as well, and some
may require an engineer in responsible charge for each branch location. It is easy to forget that the firm license is always dependent on the un- derlying individual licenses. If a responsible engineer leaves the firm, the firm must notify the engineering board within a specified time frame and appoint a replacement. Failure to do so may lead to a lapsed license and loss of your right to work in the state. Since individual licenses are usually filed under the engineer’s home address, you may need to notify the board whenever an engineer in charge moves. Corporate structure Requirements also vary based on firm structure. For example, in Ver- mont, engineering firms wishing to incorporate must be formed as pro- fessional corporations (PCs) or professional limited liability companies (PLLCs), while in New Jersey, foreign engineering firms are not permit- ted to form PCs. Because these requirements are “all over the map,” it’s important to examine them in detail whenever you are contemplating moving into a new state. In some states, you may need to amend your articles of incorporation or create board resolutions to secure a license. Looking for these entity- level requirements will help avoid surprises down the road. Ownership and management Many states impose management or ownership requirements on engi- neering firms. In Georgia, for example, all stockholders in a PC as well
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january 2018
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