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CPAs and non-CPAs form a partnership to practice public accounting?
Wiki User
∙ 11y ago
Yes, in most states.
AICPA Position
The AICPA supports non-CPA ownership of CPA firms. The UAA section provides that:
- Licensed CPAs must hold a simple majority of the ownership;
- A licensed CPA or CPA with practice privileges must be responsible for registration of the firm;
- Passive ownership is not permitted;
- The partner/owner in charge of attest services must be a licensed CPA or CPA with practice privileges; and
- All non-CPA owners must be actively engaged in working for the firm, or an affiliated entity;
Under the UAA provision, unless the firm complies with the ownership requirement, it cannot obtain a license. Only a licensed CPA firm may perform attest services and call itself a CPA firm.
State Action
Currently, 49 states and jurisdictions have the UAA simple majority provision in place. They are: AL, AK, AR, AZ, CA, CO, CT, DC, FL, GA, GU, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, NE, ND, NH, NJ, NM, NV, OH, OK, OR, PA, PR, RI, SD, TN, TX, UT, VA, VT, WA, WI, WV, and WY. The state of SC allows for non-CPA ownership, but a 2/3 CPA ownership is required. There are 5 states and jurisdictions that currently do not allow for non-CPA ownership. They are: CNMI, DE, HI, NY, and USVI.
States and jurisdictions that do not allow non-CPA ownership are:
- Commonwealth of Northern Mariana Islands - Statute and rules do not reflect information about non-CPA ownership.
- Delaware - If individuals or shareholders in a CPA firm hold themselves out as a CPA then the ownership of the firm must be 100% owned by the licensed individual shareholders within the firm (Delaware license only) and shareholder (Delaware license only) within the firm.
- Hawaii - If individuals or shareholders in a CPA firm hold themselves out as a CPA or PA then the ownership of the firm must be 100% owned by the licensed individuals (Hawaii license only) and shareholders (Hawaii license only) within the firm.
- New York - Statute and rules reflect if individuals or shareholders in a CPA firm hold themselves out as a CPA then the ownership of the firm must be 100% owned by the licensed individuals shareholders within the firm.
- U.S. Virgin Islands - Statute and rules do not reflect information about non-CPA ownership.
http://www.aicpa.org/Advocacy/State/Pages/OwnershipofCPAFirms.aspx
Wiki User
∙ 11y ago
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