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The work on the other side

Working across state lines

Compiled by the Sitonce editorial team from the PSI Candidate Information Bulletin, NASCLA's own published material and the federal standards named belowUpdated 2 min readFacts verified 4 September 2026
The short answer

A NASCLA transcript removes the examination barrier in participating states. Each state still requires its own license, bond, business registration and tax compliance before you can legally work there.

The accredited exam solves one problem well and leaves the others untouched.

What travels

The examination result. Pass once and participating states will accept the transcript instead of requiring their own trade examination.

For a contractor working in several states that is the difference between one exam and several.

What does not

RequirementPer state?
LicenseYes, each state issues its own
License bondYes, and each carries an annual premium
Insurance filingsYes, often with state-specific forms
Business registrationYes, as a foreign entity in each state you operate in
State tax registrationYes, including withholding where you have employees
State business and law examIn many states, yes, on top of the accredited exam
Registered agent and foreign qualification

Operating in a state where your entity is not registered can invalidate contracts and block you from enforcing a lien. It is an administrative step people skip and it becomes expensive at exactly the wrong moment.

Employees crossing lines

Workers compensation is state-specific. A policy written in one state may not cover an employee injured in another without an endorsement, and the gap is discovered after the injury.

Payroll withholding follows where the work is performed, which creates filing obligations in each state you build in.

Local requirements below the state

Cities and counties add their own registrations, permits and sometimes licenses. State licensure does not exempt you from a municipal contractor registration.

Sequence it

License, entity registration, tax accounts, insurance filings, then bid. Doing it the other way around means winning work you cannot legally start.

Common questions

Can I work in another state with a NASCLA pass?

The transcript removes the exam barrier in participating states. You still need that state's license, bond and registrations.

What do I need in each state?

A license, a license bond, insurance filings, foreign entity registration and state tax accounts.

Why does entity registration matter?

Operating unregistered can invalidate contracts and block lien enforcement.

Does my workers compensation cover other states?

Not necessarily. Coverage is state-specific and may need an endorsement.

Are there local requirements too?

Yes. Cities and counties add registrations and permits that state licensure does not cover.