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PA Licensing

Multi-State PAs: Which Licenses to Keep and Which to Let Lapse

Every license has a carrying cost and most have a renewal cycle you are not watching. Under a compact, the arithmetic on which ones to keep is about to change.

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2 min read · by White Glove PA
Abstract illustration of a set of tiles where some are solid and others are being faded out.

Licenses accumulate. Reviewing them rarely happens until a renewal notice arrives, which is the worst moment to think about it.

The carrying cost

Renewal fees vary enormously — Missouri renews at 8, Illinois at 0 a year, California at 00 biennially, Washington at 47 plus surcharges. On top of that sits state-mandated CME, which is real time, and the administrative load of tracking cycles that do not align.

What changes under a compact

A license in a member state stops being worth one state. It becomes the qualifying license for privileges across the membership, which makes it worth considerably more than its renewal fee suggests — and worth more than a license of equal cost in a non-member state.

So the instinct to prune the license you are not currently using may be exactly wrong if that license is in a member state and your others are not.

A workable rule

Keep any license in a compact member state, particularly if it is your only one. Keep licenses in large markets you might plausibly return to. Keep cheap licenses almost regardless — at 8 a year, the option value beats the saving.

Consider dropping expensive licenses in non-member states you have no realistic plan to work in, where reinstatement remains available if you are wrong.

Before you drop anything

Check the reinstatement rules. Most states treat a short lapse as administrative and a long one as a fresh application. The cliff is commonly around two years, and crossing it converts a cheap decision into an expensive one.

And prefer inactive status where it exists. It is cheaper to hold than active and far cheaper to return from than lapsed.

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