Why EVERY Engineering Firm Owner Needs a Professional Engineering License

In this article (and video above), I share why every engineering firm owner should prioritize obtaining a PE license, and how it can take your business to the next level—whether you’re just starting out or have been in the industry for years.

The High Risks of Operating Without a PE License

Running an engineering firm without a licensed engineer on board exposes your business to serious risks:

1. Legal Liability

Firstly, in some US states, professionals CANNOT be an owner in an engineering business without a license, so in this scenario, it’s an absolute must. However, even if it is legal to own a company without a PE license, firm owners may be personally liable if a project goes wrong. That means your own finances, assets, and reputation could be on the line. Legal action, fines, and settlements can quickly become devastating for both you and your business.

2. Project Failures

Projects led without licensed engineers often face delays, budget overruns, and quality issues. These problems hurt your firm’s credibility and can lead to negative word-of-mouth, bad reviews, and a lasting dent in your reputation.

3. Lost Client Trust

Potential clients are looking for qualified, trustworthy firms to handle their projects. If your firm lacks licensed professionals, it raises red flags, causing you to lose out on valuable contracts and growth opportunities.

4. Business Survival at Stake

In the worst cases, a firm without proper licensure may face financial collapse, forced closure, or legal shutdowns. The fallout doesn’t just affect solely the owners—it impacts employees, their families, and your wider community.

The Power of a PE License

Now, let’s flip the script. Here’s what happens when you do have a licensed engineer on your team—or better yet, when you’re a licensed engineer yourself:

✅ Increased Client Trust
A PE license signals professionalism and competency. Clients gain confidence knowing they’re working with experts who deliver high-quality, code-compliant projects.

✅ Better Project Outcomes
Licensed engineers help ensure projects meet the highest standards, minimizing costly errors and delays, which leads to greater client satisfaction and repeat business.

✅ Access to Bigger Opportunities
With a PE license, you can qualify for larger contracts, enter new markets, and work on complex projects that are off-limits to unlicensed firms. This is how businesses scale, increase revenue, and stay competitive.

Make the Investment in Your Future

I’ve seen this happen time and time again where just ONE licensed engineer can completely change the trajectory of a business.

If you’re an engineering firm owner, now is the time to prioritize licensure—not just to protect your business, but to unlock its full potential.

The stakes are high, but the rewards are higher. Don’t wait until it’s too late. Start your journey to obtaining a Professional Engineering license today—and watch your firm thrive.

I hope you found this article helpful. In upcoming articles, I will solve some more PE exam practice problems and answer other questions from our subscribers. Pass the PE Exam videos will publish weekly, so be sure to click the subscribe button so you don’t miss something that could make a substantial difference in your exam result.

Lastly, I encourage you to ask questions in the comments of this video or on this page, and I’ll read and respond to them in future videos. So, if there’s a specific topic you want me to cover or answer, we have you covered.

I’ll see you next week… on Pass the PE Exam

Anthony Fasano, P.E., AEC PM, F. ASCE
Engineering Management Institute
Author of Engineer Your Own Success