how professional licensing fees work
many professions require licenses before a person can perform the work in that field these licenses are usually granted after the individual has passed a certification exam and completed a required amount of training for example licenses are required to become a professional in many fields including once licensed an individual is known as a licensee to maintain their licenses they may need to take additional exams complete further training or pay ongoing fees their license can be revoked if the licensee violates legal standards or the code of ethics in their profession licensing fees are designed to ensure that professionals in these fields have the necessary skills and follow ethical guidelines which helps protect the public state governments often issue these licenses and individuals looking to do business in multiple states may have to obtain a license from each one for example life insurance agents usually hold a license in their home state or the one where their business is based but they can also obtain nonresident licenses to do business in other states through reciprocity agreements beyond state level licensing the federal government also requires certain businesses to pay licensing fees for example the nuclear regulatory commission charges licensing fees to commercial nuclear power plant operators the federal communications commission fcc imposes fees on radio and television broadcasters among other industries that are regulated at the federal level pros and cons of professional licensing feesprofessional licensing aims to guarantee that people or businesses engaged in a certain trade or selling specific products are qualified and knowledgable it also provides the public with the confidence in these professionals finally licensing fees also serve as a revenue source for government agencies for example a cpa is an important position as that individual can audit state and local governments and in some cases protect the public from financial crimes a notable example cpas at the federal bureau of investigation fbi who unraveled complex illegal financial transactions such as mobster al capone s conviction for tax evasion the licensing fee for cpas is vital as it ensures that these professionals adhere to rigorous standards of expertise and ethics essential for handling sensitive financial information and protecting public interests in various high stakes scenarios however the costs associated with licensing fees along with the time and investment required for the necessary training can create barriers to entry into licensed occupations for example hairdressers must pay a licensing fee and obtain a cosmetology license to legally operate which in turn can increase the cost of their services these requirements for professional licensing are meant to ensure quality and provide the public with confidence in those professions some may argue that weakening licensing requirements or reducing fees could put the public at risk but licensing fees may also inadvertently limit the number of professionals entering certain fields and lead to a shortage in certain services historical events have influenced professional licensing the collapse of the st francis dam in california in 1928 which resulted in over 500 fatalities was pivotal in initiating the licensing of professional engineers in these states the dam collapse was attributed to poor engineering and human errors and led to licensing requirements 