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4-25-750 >>
4-25-752
(1)
How may a CPA firm be organized? A CPA firm may be organized as:
(a) A proprietorship;
(b) A partnership;
(c) A professional corporation (PC) or professional service corporation (PS);
(d) A limited liability company (LLC);
(e) A limited liability partnership (LLP); or
(f) Any other form of legal entity authorized by statute for use by a CPA firm.
(2)
What happens when a CPA firm alters its legal form? A change in the legal form of a firm constitutes a new firm. Accordingly, the new entity must first obtain a CPA firm license from the board.
(3)
What are the ownership requirements for a CPA firm? (a) All owners of a licensed CPA firm are required to:
(i) Fully comply with the provisions of chapter
18.04 RCW; and
(ii) Be subject to discipline by the board for violations of chapter
18.04 RCW or
4-25 WAC;
(b) A simple majority of the ownership of the licensed firm in terms of financial interests and voting rights of all partners, owners, or shareholders must be:
(i) Licensees in this state or holders of a valid license to practice public accountancy issued by another state;
(ii) Entitled to practice public accounting in Washington state; and
(iii) Principally employed by the corporation or actively engaged in its business.
(c) At least one general partner of a partnership, one shareholder of a corporation, and one member of a limited liability company must be a licensee.
(d) Each CPA proprietor, partner, shareholder or member who is either a resident or is entering the state and practicing public accountancy in this state must hold a valid Washington state license or practice privileges.
(e) The principal partner of the partnership and any partner having authority over issuing reports on financial statements must be a licensee under the act or holder of a valid license to practice public accountancy issued by another state and must be entitled to practice public accounting in this state.
(f) The principal officer of the corporation and any officer or director having authority over issuing reports on financial statements must be a licensee under the act or holder of a valid license to practice public accountancy issued by another state and must be entitled to practice public accountancy in this state.
(g) The managing member of a limited liability company and any member having authority over issuing reports on financial statements must be a licensee under the act or holder of a valid license to practice public accountancy issued by another state and must be entitled to practice public accountancy in this state.
(h) A nonresident CPA owner must be licensed to practice public accountancy in at least one state.
(i) A nonlicensee owner must:
(i) Be an individual;
(ii) Meet the good character requirements of RCW
18.04.105 (1)(a);
(iii) Comply with the act and board rules; and
(iv) Be an active individual participant in the licensed firm or affiliated entities as these terms are defined in WAC
4-25-410; and
(j) A resident nonlicensee firm owner must meet the requirements of WAC
4-25-752 and register with the board concurrent with submission of the firm license, or submission of an amendment to the firm license, to the board.
(4)
What are the requirements for the firm's main office and a branch office? A firm's main office located in this state must be under the direct supervision of a resident licensee.
A branch office is an office of a licensed CPA firm which is physically separated from the main office. A branch office operates under the license of the main office.
(5)
How does a firm apply for an initial firm license? To apply for an initial firm license an owner, or designee, must submit or, in the case of an out-of-state firm required to be licensed under RCW
18.04.195 (1)(a), an individual qualified for practice privileges in this state under RCW
18.04.350(2) who has been authorized by the applicant firm to make the application must submit the following information, all applicable fees, and such other information the board deems necessary to the board's office:
(a) The firm name;
(b) Address and telephone number of the main office and any branch offices of the firm;
(c) Name of the managing licensee of the main office located and maintained in this state;
(d) Resident licensee owners' names;
(e) Name(s) of all nonlicensee owners; and
(f) Type of legal organization under which the firm operates.
Board form(s) are available from the board's web site or upon request for your use.
An initial application is not complete and cannot be processed until all fees, required information described in subsection (5) of this section, or other documentation or information the board may deem necessary is received by the board. On the date the application is approved, the firm's license will be included in the board's licensee data base and, therefore, made publicly available for confirmation. Confirmation of the approval of the firm's license will be mailed to the address of record with the board provided at the time of the application, or subsequently changed by formal notice to the board.
The initial CPA firm license will expire on June 30 of the third calendar year following initial licensure.
(6)
How do I renew a CPA firm license? To renew a CPA firm license an owner or designee or, in the case of an out-of-state firm required to be licensed under RCW
18.04.195 (1)(a), an individual qualified for practice privileges in this state under RCW
18.04.350(2) who has been authorized by the applicant firm to make the application, must submit the information described in subsection (5) of this section that is current at the date the renewal application is submitted to the board. A renewal application is not complete and cannot be processed until all fees, required information, and required documentation, and other documentation deemed necessary by the board are received by the board.
Board form(s) are available from the board's web site or upon request for your use. Failure to file a complete application for renewal of a firm license by April 30 of the year of expiration will result in late fees. The board may waive, reduce, or extend the due date of renewal and/or late fees based on reasonable cause including, but not limited to, financial hardship, critical illness, or active military deployment.
On the date the renewal application is approved, the firm's license will be included in the board's licensee data base and, therefore, made publicly available for confirmation. Confirmation of the validity of the renewed firm's license status will be mailed to the address of record with the board provided at the time of the application, or subsequently changed by formal notice to the board.
The CPA firm license will expire on June 30 of the third calendar year following the date of renewal.
(7)
When and how must the firm notify the board of changes in the licensed firm? An individual authorized by the firm must provide the board written notification and other documentation deemed necessary by the board within ninety days of any or all of the following occurrences:
(a) Dissolution of the firm;
(b) The occurrence of any event that would cause the firm to be in violation of RCW
18.04.195 or this rule; or
(c) An event that requires an amendment to a firm license.
(8)
What events require a firm amendment? An individual authorized by the firm must provide written notification to the board, by submitting the following information and the appropriate amendment fee, within ninety days of the following:
(a) Admission or departure of an owner;
(b) Any change in the name of the firm; or
(c) Change in the resident managing licensee of the main office in this state.
(9)
How long do I have to correct noncompliance with licensure requirements due to a change in ownership or an owner's credentials? An individual authorized by the firm must notify the board within ninety days of any change in ownership or lapse of an owner's license, certificate, registration or practice privilege that has caused the firm's license to be out of compliance with licensure requirements and must correct the noncompliance within ninety days of the lapse, unless the board grants a longer time period due to reasonable cause including, but not limited to, financial hardship, critical illness, or active military deployment.
[Statutory Authority: RCW 18.04.055(8), 18.04.195, 18.04.205. 08-18-016, § 4-25-750, filed 8/25/08, effective 9/25/08; 05-01-137, § 4-25-750, filed 12/16/04, effective 1/31/05; 03-24-033, § 4-25-750, filed 11/25/03, effective 12/31/03; 02-04-064, § 4-25-750, filed 1/31/02, effective 3/15/02; 00-11-074, § 4-25-750, filed 5/15/00, effective 6/30/00. Statutory Authority: RCW 18.04.055(8) and 18.04.205(3). 99-18-117, § 4-25-750, filed 9/1/99, effective 1/1/00. Statutory Authority: RCW 18.04.055(3), 18.04.205(3) and18.04.195 . 96-12-061, § 4-25-750, filed 5/31/96, effective 7/1/96. Statutory Authority: RCW 18.04.055. 93-22-089, § 4-25-750, filed 11/2/93, effective 12/3/93.]