Do I Need a License or Certification to Operate an Architectural Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- 4 days ago
- 3 min read
Starting an architectural business is an exciting venture, but before you begin designing buildings and taking on clients, it’s crucial to understand the legal and licensing requirements that govern the industry. Whether you're launching a solo practice or forming a full-service firm, licensing and certification are essential steps to ensure compliance and credibility.
At Wexford Insurance, we often guide new architecture firms through this process, helping them understand how their business structure can impact licensing, liability, and insurance eligibility.
Why Licensing Matters in Architecture
Architecture is a regulated profession in all 50 states. To legally offer architectural services, individuals must be licensed by their state’s architecture board. In most cases, this involves:
Completing a professional degree in architecture
Gaining experience through an internship (AXP)
Passing the Architect Registration Examination (ARE)
Once licensed, architects must maintain their credentials through continuing education and periodic renewals.
Do Architectural Firms Need a License Too?
Yes—many states require not only individual architects to be licensed but also the business entity itself. This means your architectural firm may need to:
Register with the Secretary of State
Obtain a Certificate of Authorization (COA) from the state architecture board
Designate a licensed architect responsible for overseeing projects
Some states also impose ownership requirements, such as requiring a certain percentage of firm owners or directors to be licensed architects.
Key Considerations:
Professional Entity Requirements: Many states require architecture firms to register as a professional entity, such as a Professional Corporation (PC) or Professional Limited Liability Company (PLLC). These structures are designed specifically for licensed professionals like architects.
Ownership Rules: Some states mandate that a certain percentage of the firm’s owners or board members must be licensed architects. This ensures that qualified professionals are in charge of the firm’s operations and decisions.
Naming Restrictions: Your firm’s name must accurately reflect its services and comply with state board regulations. For example, using the word “Architects” may only be allowed if multiple licensed architects are part of the business.
Operating Across State Lines
If you plan to work in multiple states, you’ll need to navigate reciprocal licensing and foreign entity registration. Each state has its own rules, and failing to comply can result in fines or disciplinary action.
Insurance for Architectural Businesses
Licensing is just one part of running a compliant and protected architectural firm. You also need the right insurance coverage to safeguard your business from risks like design errors, property damage, and employee injuries.
At Wexford Insurance, we specialize in helping architectural firms find tailored coverage. Our programs are designed specifically for professionals in the architecture and construction design industry.
Essential Insurance Coverages Include:
General Liability Insurance – Protects against third-party injury or property damage claims.
Commercial Auto Insurance – Covers vehicles used for site visits or transporting materials.
Commercial Property Insurance – Safeguards your office space, computers, and design equipment.
Equipment Insurance – Covers specialized tools and technology used in your practice.
Workers’ Compensation Insurance – Required if you have employees; covers medical costs and lost wages.
Is It Worth Starting an Architectural Business?
Absolutely—if you’re passionate about design and willing to navigate the legal and business aspects. With the right licensing, insurance, and strategic planning, architectural firms can be highly profitable.
