Opening a funeral home requires two parallel tracks of approval: at least one owner or employee must hold a personal funeral director or embalmer license from the state, and the building itself needs a funeral establishment permit. On top of those core credentials, funeral home licenses and permits sit inside a wider compliance package that includes the FTC Funeral Rule, OSHA workplace safety standards, state pre-need contract rules, and standard business registrations. Nothing here is optional, and most of it has to be in place before you serve your first family.
Personal Licensure for the Funeral Director
Every establishment permit requires a licensed funeral director in charge, so the licensing path for the professional comes first. Most states require an associate degree from a program accredited by the American Board of Funeral Service Education, covering anatomy, microbiology, restorative art, embalming chemistry, funeral law, and business operations.
After graduation, candidates sit for the National Board Examination administered by the International Conference of Funeral Service Examining Boards. Passing scores on all tested areas are a prerequisite before any state will consider a license application.
Classroom and exam work isn’t enough on its own. Nearly every state requires a supervised apprenticeship of one to two years under a licensed funeral director or embalmer, with a documented case count.1American Board of Funeral Service Education. Frequently Asked Questions Miss the filing deadline for apprenticeship documentation and some states will void the application, forcing the candidate to restart.
Licensing boards also run a criminal background check, usually by fingerprint. Boards weigh whether a prior conviction is substantially related to the duties of a funeral professional, with convictions involving dishonesty, fraud, or death-care statute violations drawing the heaviest scrutiny.
Forming the Business That Will Hold the Permit
The establishment permit is issued to a legal entity, not a person, so form the business before applying. Most owners choose an LLC or corporation to separate personal and business liability. File formation documents with the Secretary of State, then apply for an Employer Identification Number from the IRS. The IRS requires state-level formation to be complete before you submit the EIN application.2Internal Revenue Service. Get an Employer Identification Number
The name on the permit application has to match the name on file with the Secretary of State. If you plan to operate under a trade name, file a DBA registration before you submit the permit application; otherwise the mismatch will stall processing.
Facility Requirements That Gate the Permit
The building is where most applications get held up. Local zoning ordinances typically restrict funeral establishments to specific commercial or mixed-use zones. Verify zoning compatibility before you sign a lease or close on a property, because a variance request after the fact is slow, expensive, and uncertain.
The Preparation Room
Every state requires a dedicated preparation room with non-porous wall and floor surfaces, drainage connected to an approved sewer, and ventilation strong enough to control formaldehyde and biological hazards. OSHA doesn’t dictate a specific air-change rate, but it sets a hard permissible exposure limit for formaldehyde: no more than 0.75 parts per million as an eight-hour time-weighted average, and no more than 2 ppm over any fifteen-minute period.3Occupational Safety and Health Administration. 1910.1048 – Formaldehyde Hitting those limits in practice usually means mechanical ventilation with a substantial fresh-air supply, often paired with downdraft tables that pull vapors away from the embalmer’s breathing zone.4Occupational Safety and Health Administration. Appendix A to 1910.1048 – Substance Technical Guidelines for Formalin
Refrigerated storage is also expected. Industry practice holds coolers between 35°F and 42°F, with most facilities targeting around 38°F.
Public Spaces and ADA Compliance
Public-facing areas include a viewing room or chapel, visitor restrooms, and often a casket selection area. Funeral homes qualify as places of public accommodation under ADA Title III, so new construction must be fully accessible and renovations must make altered areas accessible to the maximum extent feasible.5ADA.gov. Americans with Disabilities Act Title III Regulations That covers parking, ramps, door widths, restroom layout, and pathways between rooms.
OSHA Compliance Programs
Facility construction is only half the OSHA picture. Operations trigger ongoing written programs that inspectors will ask to see.
The bloodborne pathogens standard requires every funeral home to maintain a written Exposure Control Plan identifying employees with occupational exposure and the methods used to minimize risk.6Occupational Safety and Health Administration. 1910.1030 – Bloodborne Pathogens The plan must be reviewed and updated at least annually. Employers must also offer the hepatitis B vaccine to every exposed employee at no cost within ten working days of start, and keep a signed declination on file for anyone who refuses.
The formaldehyde standard adds exposure monitoring, employee training, and medical surveillance obligations on top of the engineering controls above. If initial monitoring shows exposures at or above the action level of 0.5 ppm, periodic monitoring is required and additional controls or respirators may become necessary.
Biohazardous waste from embalming must be contained, labeled, and disposed of according to state medical waste rules. Contaminated materials generally go in red biohazard bags marked with the international symbol, and disposal has to be handled by a licensed medical waste hauler.
Applying for the Funeral Establishment Permit
With the entity formed, the building ready, and a licensed professional on staff, you can apply to your state’s regulatory board. The packet typically includes:
- Ownership documentation: articles of incorporation, LLC operating agreement, or partnership agreement identifying all owners and officers.
- Funeral director in charge: name, license number, and employment status. Most states require this person to work at the establishment full-time and not hold the same designation at another location.
- Floor plans showing the preparation room, public areas, restrooms, and equipment placement.
- Equipment inventory covering the embalming table, ventilation, refrigeration, and other prep room equipment.
- Proof of occupancy: a signed lease or evidence of ownership.
Application fees vary widely by state, from roughly $150 to $700 or more, and are almost always non-refundable. Some boards accept online submissions; others still require mailed paper applications with a certified check or money order.
Pre-Licensing Inspection
After paperwork review, a state-authorized inspector visits to confirm that the physical space matches the application. The inspector checks plumbing, ventilation, sanitary supplies, required signage, and fire and safety code compliance in public areas. Deficiencies have to be corrected before a reinspection can be scheduled. Passing results in issuance of the establishment license, which must be displayed prominently inside the facility. Operating without a valid permit can produce substantial fines or permanent exclusion from the death-care industry.
FTC Funeral Rule Compliance
Federal law governs how you present prices to consumers from the moment you open. The FTC Funeral Rule is codified at 16 CFR Part 453 and centers on price transparency.7eCFR. 16 CFR Part 453 – Funeral Industry Practices
Required Price Lists
Every funeral home must maintain a General Price List and hand a printed copy to anyone who asks about services or prices in person. The GPL itemizes retail prices across sixteen defined categories including the basic services fee, embalming, use of facilities, transportation, and casket and outer burial container price ranges.8Federal Trade Commission. Complying with the Funeral Rule You list only items you offer, but every offered item needs an individual price.
Separate Casket Price Lists and Outer Burial Container Price Lists must be provided before you show those products. Callers asking about prices or offerings over the phone are entitled to accurate information from those same lists.
Embalming and Cremation Disclosures
The GPL must carry a written disclosure stating that embalming is generally not required by law and that families usually have the right to choose arrangements that don’t include it, such as direct cremation or immediate burial. Telling a family embalming is legally required when it isn’t violates federal law. The Rule also prohibits requiring a casket for cremation; alternative containers must be offered.
Violations carry civil penalties of up to $53,088 per occurrence, adjusted annually for inflation.9Federal Trade Commission. FTC Publishes Inflation-Adjusted Civil Penalty Amounts for 2025 A single audit that finds multiple violations can generate six-figure liability.
Pre-Need Contract Licensing
If you plan to sell pre-need contracts, which let consumers pay for arrangements in advance, expect a separate layer of state regulation beyond the establishment permit. Most states require a substantial percentage of pre-need payments to be deposited into a regulated trust account, with the required percentage ranging from roughly 30% to 100% depending on the state.
Pre-need contracts are either revocable, letting the buyer cancel and receive a refund, or irrevocable, which locks the funds in. Irrevocable funeral trusts are often exempt from Medicaid asset calculations, which drives much of their use. Most states give buyers a cooling-off period after signing during which they can cancel for a full refund.
Before offering pre-need, verify your state’s trust deposit percentage, any separate licensing requirement for pre-need sales, and the rules on trust funds and accrued interest if the buyer cancels or transfers. If you don’t sell pre-need, this requirement doesn’t apply, but assuming the establishment permit covers it would be a costly mistake.
Renewing Your Licenses and Permit
Both the individual professional licenses and the establishment permit require periodic renewal. Most states require funeral directors and embalmers to complete continuing education credits each renewal cycle, typically ten to twenty-four hours every one to two years, covering state funeral law, ethics, embalming technique, and infection control. Falling short of the required hours before the renewal deadline means the license lapses, and practicing on a lapsed license is treated as practicing without a license.
Individual renewal fees generally run from around $100 to several hundred dollars depending on state and license type. Establishment renewal fees range from a few hundred dollars into the low four figures. Late renewals almost always carry penalty surcharges, often 50% or more of the standard fee, so put every renewal deadline on the calendar the day the license is issued.