CPA firm licensing. Accounting practice entity.
CPA firms have entity structure restrictions. Most states require Professional LLC, Professional Corporation, or Partnership. Ownership requirements vary. Peer review required for audit firms.
Start here.
PLLC, Professional Corporation, Partnership.
Most states require majority CPA ownership.
Many states require firm name to include CPA names or specific phrasing.
Required for audit firms per AICPA standards.
State boards have varying reciprocity.
The full picture.
Entity options
Professional LLC (PLLC), Professional Corporation (PC), Partnership. Sole practitioners typically operate as Sole Proprietorships, PLLCs, or PCs.
Ownership requirements
Most states require majority (50%+) ownership by licensed CPAs. Some states require 100%. Some allow more flexible ownership with at least one licensed CPA on staff.
Naming
Most states require firm name to include CPA names or "Certified Public Accountants" or specific phrasing. Some allow general accounting names with proper disclosures.
Peer review
American Institute of Certified Public Accountants (AICPA) requires peer review for firms performing audits, reviews, or attest work. Cycle: typically every 3 years.
Audit firm requirements
Firms performing audits subject to: peer review, independence requirements, professional liability insurance, specialized training. Public Company Accounting Oversight Board (PCAOB) oversight for firms auditing public companies.
Multi-state operations
Reciprocity varies. Substantially equivalent licensure facilitates multi-state work in many states. Each state requires firm registration in some form.
Continuing requirements
Annual firm registration; individual CPA CPE (continuing professional education); ethics requirements; AICPA membership where applicable; peer review for audit firms.
IRS practice
EAs (Enrolled Agents) can also practice before the IRS. CPAs have broader practice including audits and reviews. Mixed firms common.
Compliance areas
Ethics rules; independence requirements (audit firms); confidentiality; client retention; trust account compliance for fiduciary services.
Common questions.
Can I use a standard LLC?
Do all owners need to be CPAs?
What is peer review?
Multi-state practice?
What is PCAOB?
Can an EA work without a CPA?
Naming rules?
How often renewal?
Set up your professional firm.
PLLC formation, registered agent, ongoing compliance. We handle entity-level requirements; you handle the professional practice.
Professional licensing is handled by state boards. File.Business handles entity formation and ongoing compliance.
On the $129/yr Compliance Annual Filings plan, we cover state late fees.
When you autofile your annual report through the $129/yr plan and we miss the deadline, we pay the state's late fee. The guarantee applies to that specific plan and the filings it includes. Other File.Business services are billed at the prices on this page.