Understanding Funeral Industry Regulations: How the Rules Change from State to State
By InfinityUrns | Updated: September 2025
The funeral industry in the U.S. is tightly regulated, but those rules look really different depending on where you live. Sure, federal laws like the FTC Funeral Rule set some ground rules, but most of the big decisions—who can run a funeral home, who needs a license, who’s allowed to do what—are all handled by the states. The result? A confusing mix of laws. In some places, you need to jump through hoops and get all kinds of professional licenses. In others, families can handle almost everything themselves.
Let’s sort through what all this actually means. Here’s what we’ll cover: the most common rules you’ll run into across the country, the wild differences from state to state, and why these rules actually matter—not just for funeral directors, but for families and lawmakers too.
Funeral Licensing: Who Needs a License, and Where?
In most states, you can’t just open a funeral home or start embalming without a license. But the details are all over the place.
Some states—think California, Florida, Illinois, Georgia, New York—require licenses for funeral homes, funeral directors, and embalmers. And we’re not just talking about filling out a form. You usually need to go through specific training, pass exams, and keep up with continuing education. New York does things a little differently: funeral directors there learn embalming as part of their main license, so there’s no separate embalmer license.
Then there are states with looser rules. In Hawaii, if a funeral home doesn’t do embalming, it might not need a license at all. Not every funeral director has to be licensed either. Alaska, Arizona, and Indiana, on the other hand, stick to stricter standards, making sure both directors and embalmers are licensed and closely monitored.
Colorado’s Big Turnaround
Colorado used to have some of the weakest funeral regulations in the country—no licenses for directors or embalmers, barely any inspections. That changed in 2024, after some shocking scandals involving mishandled bodies and cremation fraud. Now, Colorado requires funeral professionals to be licensed, pass background checks and national exams, and submit to regular inspections. It’s a complete 180 from where they started.
Do You Have to Hire a Funeral Director?
One of the biggest questions is whether families are legally required to hire a licensed funeral director for certain things, like filing death certificates, getting burial permits, or moving the body.
Some states—Connecticut, Illinois, Indiana, Iowa, Louisiana, Michigan, Nebraska, New Jersey, and New York—say yes, you do. It’s the law. You can’t handle these steps yourself.
But in other states, families have a lot more freedom. Virginia, Hawaii, and, until recently, Colorado, let families do most of the paperwork, handle transportation, and even arrange the burial or cremation themselves. Virginia is especially open to DIY funerals, as long as you follow all the legal steps.
Inspections and Oversight: How Much Are Funeral Homes Watched?
There’s a huge range in how often, or even if, funeral homes get inspected. In California and Florida, regulatory boards regularly show up for surprise inspections. They keep a close eye on both funeral homes and embalmers.
Before its recent reforms, Colorado didn’t require inspections at all. Some businesses took advantage, cutting corners or worse.
Enforcement is another mixed bag. Some states give their boards real power: they can suspend licenses, fine violators, or shut down businesses that don’t follow the rules. Other states don’t have much bite, so even if they find problems, not much happens. Still, people are pushing for more accountability, and some states are starting to crack down harder.
Who Can Own a Funeral Business?
States even split on who’s allowed to own or run a funeral home or cemetery—and whether one company can own both.
Michigan and Wisconsin keep funeral homes and cemeteries completely separate. The idea is to avoid conflicts of interest or pushy sales tactics.
Florida and Texas allow companies to own both, but lay down rules: they have to be upfront about who owns what, keep pricing transparent, and protect consumers. This setup can make things more convenient for families, but only if everyone plays by the rules.
Notable Exceptions and Recent Changes
- Colorado: From Minimal Rules to Major Overhaul
After a string of scandals, Colorado didn’t mess around—they passed sweeping new laws in 2024. Now, everyone in the business needs a license, facilities get inspected, you have to pass a national exam, and there are real penalties for breaking the rules. Colorado jumped from barely regulating the industry to becoming one of the strictest states out there.
- New York: Simpler Licensing, Fewer Layers
New York’s taken a different route for decades. Since the 1960s, they haven’t bothered with a separate embalmer’s license. Funeral directors learn embalming as part of their training and license. It cuts out some bureaucracy, but it also puts a lot of power in the hands of a single licensing board.
- Virginia: Families in Charge
Virginia stands out for families who want to handle things themselves. People talk about it all the time in home funeral and green burial circles. In Virginia, families can run funerals, handle transportation, take care of permits, and file all the legal paperwork directly. It’s a state built for those who want to keep things personal and hands-on.
Why Do These Differences Matter?
These rules aren’t just paperwork—they shape real experiences.
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Cost: Stricter rules and more inspections? That usually means higher costs for families, since businesses have to pay for compliance.
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Access: States with fewer rules give families more freedom and control, but also more responsibility to figure things out.
- Consumer protection: Tight regulations can help protect families from shady operators, but they might make it tougher for families who want to do things themselves or save money.
Take California or Illinois—odds are, you’ll get a pretty standardized, professionally managed funeral, but you’ll pay for that level of oversight. In Virginia, you can plan a funeral that’s as personal (and affordable) as you want, but you’ll need to do your homework and handle most of it yourself.
Bottom Line: Know Your Rights and State Laws
Funeral rules in the U.S. are all over the map. The federal government sets some basic standards with the FTC Funeral Rule, but every state does things its own way. Some focus on strict oversight and protecting consumers; others put a premium on giving families more choice and keeping things affordable.
Colorado’s reforms show how quickly things can change when the public demands it. Whether you’re planning a funeral, working in the industry, or pushing for new policies, it pays to know exactly what your state allows—and what it doesn’t.
Further Reading & Resources:
FTC Funeral Rule: Federal Trade Commission Overview
National Home Funeral Alliance: www.homefuneralalliance.org
Funeral Consumers Alliance: www.funerals.org
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