There is no single nationwide licensing system or federal oversight body for surrogacy agencies in the United States. State laws govern reproductive law and agency operations, meaning standards vary widely depending on where an agency is located.

Understanding how regulations work helps you evaluate an agency’s actual safeguards so you can make a confident choice.

Want to talk through surrogacy agency license and regulations together? Contact us today, and we can help you learn more about our agency and how regulations in the industry work.

Surrogacy Agency Licensing Varies by State

Because there is no federal regulation governing surrogacy organizations, state legislatures determine their own rules. Most states do not offer or require a dedicated surrogacy agency license. Instead, agencies operate as standard business entities while coordinating services with licensed medical and legal professionals.

However, a few states have established formal oversight frameworks. For example, New York enacted the Child-Parent Security Act, which requires surrogacy programs operating within the state or working with New York residents to obtain a state-issued surrogacy agency license through the New York State Department of Health.

Programs must meet strict operational, financial, and ethical standards to maintain their licensed status. In states without these specific laws, agencies operate under general business regulations.

What Does It Mean if a Surrogacy Agency Isn’t Licensed?

If an agency does not hold a specific surrogacy agency license, it does not mean the organization is unsafe, unregulated, or unqualified. In most states, a specific surrogacy agency license simply does not exist under state code. Because of this, agencies cannot apply for one even if they want to.

While the agency itself may operate under standard corporate licensing, the individual professionals managing the medical and legal milestones of your journey must satisfy strict professional credentials:

Professional Role	Governing Body & Credential Standards	Key Responsibility
Fertility Clinics & IVF Endocrinologists	Board-certified by state medical boards; regulated by FDA and CDC.	Oversees medical screening, embryo creation, and clinical transfer procedures.
Reproductive Attorneys	Licensed by state bar associations; bound by strict ethical duties.	Drafts gestational agreements, manages escrow, and secures parentage orders.
Mental Health Specialists	Licensed counselors, psychologists, or social workers regulated by state boards.	Conducts psychological evaluations and screening for surrogates and intended parents.

Evaluating an agency comes down to looking beyond a basic business license. You should carefully examine their internal screening, financial controls, and operational track record.

How to Choose a Trustworthy Surrogacy Agency

When state-level licensing isn’t a universal benchmark, intended parents need concrete criteria to evaluate an agency’s reliability. Looking closely at an agency’s operational standards gives you a clear picture of how well they protect your journey.

Key factors to evaluate include:

• Rigorous Surrogate Pre-Screening: Agencies should complete comprehensive background checks, psychological evaluations, and medical record reviews before presenting a candidate for matching. This prevents emotional and financial setbacks later.
• Transparent Fee Structures: Look for fixed-fee models or clear fee schedules that eliminate hidden costs and unexpected surprises mid-journey.
• Financial and Rematching Safeguards: Check what protections exist if a surrogate decides not to move forward or fails medical clearance.
• Coordination with External Professionals: Ensure the agency works alongside independent, specialized ART attorneys and accredited IVF clinics.

Taking time to evaluate these core areas helps you identify a program built on safety and transparency. For a deeper look at comparing programs, review our guide on how to choose a surrogacy agency.

Ask What Happens When Something Doesn’t Go as Planned

Disruptions can happen during a surrogacy journey, from a candidate failing medical clearance at the clinic to an unsuccessful embryo transfer. An agency’s policies during these unexpected turns tell you far more about their financial risk management than a business license ever could.

Before signing an agreement, ask prospective agencies these critical questions:

1. What happens to our agency fees if a match falls through before embryo transfer?
2. How long does it take to rematch, and are there additional fees involved?
3. Are our funds held in an independent escrow account managed by a licensed professional?
4. What financial buffers are built into the program if extra medical cycles are required?

An agency with clear, written policies for these scenarios protects your financial investment and minimizes delays. To prepare for these consultations, explore our list of questions intended parents should ask surrogacy agencies.

Red Flag Warning

Be cautious of any agency that cannot provide written policies regarding failed matches or escrow protections. Financial transparency matters far more than marketing promises when choosing a partner.

Choose a Surrogacy Agency With Protections Behind Its Program

At American Surrogacy, we believe intended parents deserve concrete safeguards throughout their family-building process. We pre-screen prospective surrogates through complete medical history reviews, psychological evaluations, and background checks before matching.

This thorough preparation ensures you match with candidates who are fully qualified and ready to proceed.

We back our commitment to intended parents through our Limited Risk Program, which provides financial protection and rematching guarantees if unexpected complications arise. Paired with our dedicated specialist support and coordination with top-tier ART attorneys, our program offers peace of mind from day one.

Learn more by reading about how to find the best surrogacy agencies for intended parents.

Secure Your Surrogacy Journey With Trusted Safeguards

You don’t have to navigate agency standards alone. Reach out to American Surrogacy today to learn more about our screening protocols, financial protections, and how we can support your path to parenthood.