When it comes to starting a new business in Florida, the Sunshine State tries to make it as easy as possible for certain licensed business owners from outside states to come in and set up shop. One of the ways they do this is through several reciprocity, endorsement, or mutual recognition programs, which allow Florida’s Department of Business & Professional Regulation (DBPR) to recognize and transfer out-of-state licenses to Florida, rather than applying for a net-new business license.
However, the reciprocity program isn’t a universal one, meaning only certain states and trades qualify for this transfer. To help you figure out if you qualify, the editorial team at Simply Business pulled the research from the DBPR and combed through the trades to come up with our ultimate guide to Florida license reciprocity requirements.
In this guide, you’ll learn:
- Which trades (and in which states) can transfer their license to Florida
- How to apply for a license transfer
- What to do if reciprocity isn’t available
- Florida business insurance requirements
Understanding Florida License Reciprocity
Business license reciprocity is an interstate arrangement that lets a professional or business owner licensed in one state obtain the same or a comparable license in Florida without repeating the full application process.
In Florida, “reciprocity” is used to describe three distinct pathways that business owners can take when they move their operations to the Sunshine State. These pathways are determined by your trade and state, so review carefully to make sure you’re following the right recommendation.
Endorsement vs. Reciprocity vs. Mutual Recognition
Endorsement
Endorsement is the broadest pathway that most business owners can take when moving their operations to Florida. Instead of applying for a net-new business license, Florida issues you a license based on your existing one, but only if your home state’s requirements are substantially equivalent to Florida’s.
Many professions without a formal reciprocity agreement offer endorsement, including certified public accountants and certain contractors. However, it’s not universal, and some endorsements for industries like healthcare and engineering may be handled by boards other than the DBPR.
Reciprocity
This is a direct agreement between Florida and a few other states. This is a direct, one-to-one license transfer; however, it is extremely limited in scope and applies to certain contractor trades from a handful of states. For example, residential contractors in Mississippi can transfer their contractor license to Florida, but a residential contractor based in Virginia wouldn’t qualify under the reciprocity program.
Mutual recognition
Mutual recognition is a term Florida uses for real estate agents. For real estate agents in certain states, this means that Florida will recognize your out-of-state experience and education; however, they’ll still require you to take a Florida-specific exam. The exam is made up of 40 questions; applicants are required to get 30 or more correct responses in order to pass. Depending on your home state, you may also need to have had your license for a defined amount of time before Florida will allow you to take its exam.
Benefits of Reciprocity for Business Owners
Perhaps one of the biggest benefits of reciprocity is that business owners in applicable states may not, depending on the particular program or trade, have to retake exams or re-apply for a similar license they’ve already been carrying for years. That means eligible business owners can save money and time while significantly reducing the red tape that otherwise would be in place if they wanted to open a multi-state operation.
Industry-Specific Reciprocity Requirements
Florida contractor license reciprocity
Florida has contractor reciprocity agreements with three states: Louisiana, Mississippi, and North Carolina. If you hold a general, building, or residential contractor license in one of those states, you can apply through DBPR form CILB 32 and request a certification from your home state showing your license is active and in good standing.*
*This state information is accurate as of the date of publication of this article. Please visit the applicable state pages to confirm any updates before applying.
If you are licensed in any other state, reciprocity does not apply, and you would use endorsement instead. Florida accepts the NASCLA exam in place of another state’s trade exam, though you still need to pass the Florida Business and Finance exam and meet the state’s experience, financial, and insurance requirements.
Contractors who have held an active license in the same category for at least ten years may also qualify for licensure by endorsement, which grants you a Florida license based on your home state credentials if they are substantially equivalent. Note that Florida requires a license for most construction work valued above $2,500.
Other professional and trade-related business licenses
Many regulated fields do not have state-to-state reciprocity agreements with Florida and instead offer licensure by endorsement, where Florida reviews whether your home-state training, exams, and experience are substantially equivalent to its own. For example, CPAs and cosmetologists can apply for a Florida business license via endorsement, which means if accepted, they won’t have to retake any exams to be licensed.
Endorsement is common, but it’s not a guarantee for every profession. To see whether yours qualifies for endorsement, check the DBPR’s list of business license requirements by profession.
Real estate license mutual recognition
Florida real estate uses mutual recognition rather than reciprocity. Florida currently holds mutual recognition agreements with ten states: Alabama, Arkansas, Connecticut, Georgia, Illinois, Kentucky, Mississippi, Nebraska, Rhode Island, and West Virginia.
If you are licensed in one of these states, you can skip Florida’s pre-licensing course, but you must pass a 40-question Florida real estate law exam and score at least 30 to pass.
Important: In order to qualify for mutual recognition, you must at least be 18 years of age and not already living in Florida. It’s also worth noting that you can’t acquire your real estate license as a result of reciprocity from another state; Florida requires that your business license originate from one of the ten states listed above. [Note that AL and AR have time requirements]
Step-by-Step Application Process
Identify which pathway your business qualifies for
Depending on your trade, you can take the pathway of reciprocity, mutual recognition, or endorsement. Your profession will influence which pathway you can go for, as well as who you’ll apply through. Specialized trades — such as plumbing, HVAC, and electrical contractors — will need to apply for endorsement through Florida’s independent trade boards.
Gather your required documentation
While each trade will have different documentation requirements, you should be prepared to provide the following:
- Your name/DBA
- Existing license number
- Date of initial licensure
- Proof that the license was obtained by passing your profession’s required exam
The DBPR notes that you can find additional documentation requirements on page 4 of your trade’s licensing application.
Confirm your license is current
Florida requires your license to be current in order to apply for mutual recognition or endorsement. For contractors, your license should have been active within two years in order to apply for reciprocity.
Submit your application to the relevant Florida board
Your trade’s specific submission process will be found in your Florida business license application.
Pay applicable fees
Your fee will be determined by the type of pathway you’re using and your trade. For business owners who are facing financial difficulty or for veterans and members of the military, you can apply for an application fee waiver.
Complete any Florida-specific requirements
For example, real estate agents will need to take a Florida real estate exam, while residential and general contractors will need to take a Florida building code course.
Receive your Florida business license
If and once the board approves your application, you’ll receive your Florida business license, usually in one to four weeks. If your licensing application requires a background check, it may take longer for your license to come back.
What If Reciprocity Isn’t Available?
If no agreement covers your profession or home state, you still have routes into Florida.
- Endorsement lets Florida grant a license based on substantially equivalent out-of-state credentials.
- Examination is the fallback when you don’t qualify for mutual recognition or endorsement. This option is available to you if you meet Florida’s standard education, experience, and testing requirements for your specific profession.
- Temporary options exist in some fields. Contractors, for example, can request a limited, nonrenewable registration to complete a single project.
Business Insurance Requirements for Licensed Professionals
Getting a Florida business license and having business insurance are deeply connected in most states, and Florida is no exception: some boards will not issue or maintain a license without proof of coverage.
For example, contractors are required by the state to have policies with specific minimums. General, residential, and building contractors must carry public liability insurance and property damage insurance, in amounts determined by their specific licensing boards. Carrying a general liability insurance policy typically meets these requirements, as it can financially cover claims resulting from third-party bodily injury and property damage. But business owners should check with local licensing boards for coverage minimums.
Florida also requires business owners to carry workers compensation insurance. In the construction industry, coverage is required as soon as you have one employee. Non-construction businesses need coverage at four or more employees, and agricultural businesses at six regular or twelve seasonal workers. Contractors must obtain coverage or a valid exemption prior to licensure, as proof is required in the application.
Even if you’re not required by law to carry business insurance, it’s still highly recommended to have coverage. Some clients may require you to have a policy to work onsite, and for good reason — the right policy can provide you with financial protection in case of third-party accidents, injuries, and even property damage. That means less out-of-pocket expense for you — and more money that can go back into growing your Florida business.
Frequently Asked Questions
The answer depends on your business type and trade. For contractors, only Louisiana, Mississippi, and North Carolina have reciprocity agreements. For real estate agents, ten states have mutual recognition agreements. If your state and profession are not covered, you will need to use the endorsement route or complete Florida’s standard process for getting a business license.
No, you’ll need to apply for and get a Florida business license via reciprocity, mutual recognition, or endorsement.
Timelines vary by board. Contractor licenses are typically issued about one to four weeks after board approval. Make sure your application is complete with all the required documentation to avoid any delays.
Costs vary based on the pathway you’re taking (reciprocity vs. mutual recognition vs. endorsement) as well as your trade type.
It depends on the pathway you choose. Real estate mutual recognition requires the 40-question Florida law exam. Contractor reciprocity waives the trade exam but not the other requirements. Endorsement routes carry their own testing rules. Check your particular pathway for specific requirements.
Generally, no. You need the Florida license in hand first. For example, residential or building contractors who perform licensable work valued above $1,000 without a Florida business license could face penalties and fines.
Reciprocity and mutual recognition require a license that is active and in good standing. Disciplinary history is reviewed case by case, so make sure you disclose it to the licensing board where you’re applying.
Get Back to Business
Transferring a license to Florida takes planning, but knowing your pathway removes a lot of the headache and guesswork. Make sure you confirm the requirements with the Florida agency that regulates your profession, line up your documentation early, and apply before you establish residency in the Sunshine State.
If you need to show proof of business insurance coverage – and most trades will – the Simply Business team is here to help. Whether you’re looking for workers’ compensation or general liability, Simply Business has got you covered. Start your free online quote today and we’ll take it from there.