Registration Of A Firm Practicing Public Accountancy As A Sole Proprietorship
A firm that will be practicing public accountancy in the State of Texas as a sole proprietorship must register with the Board unless the firm is an out-of-state firm that meets the requirements of Section 901.461 of the Public Accountancy Act (effective September 1, 2007).
If your firm holds a license issued by a state other than Texas, review therequirements for out-of-state firms to determine your eligibility to practice in Texas without obtaining a Texas firm license and without notifying the Board. Complete the following steps if your firm must register with the Board.
Step One: Initiating the Process
- Contact the Board to obtain a Sole Proprietorship Registration form. The firm's practice in Texas must be performed by an individual who meets the requirements of Section 901.462 of the Public Accountancy Act or is performed by an individual who holds a Texas license. If your firm is not an out-of-state firm the individual must have a valid Texas license.
- Continue the registration process with the Board by downloading, completing, and submitting the required forms and documents listed below with the Sole Proprietorship Registration form. Upon receipt, the Board will review the completed forms and contact the firm for additional information, if necessary. No fees are required with these forms. Any firm that performs accounting and/or auditing engagements will be required to enroll with an approved sponsor in the Peer Review Program.
- Before returning your initial submission forms, use the checklist provided to make certain all necessary forms and worksheets have been completed and included in the package.
Step Two: Completing the Registration Process
- After initial approval by the Board, the Board will send a packet including all forms and worksheets necessary to complete the registration process.
- With submission of this second set of forms, the firm will be required to pay to the Board an Office License Fee for each office location and a Firm Organization Fee based on the number of Texas CPAs, Texas CPA employees, and the number of non-CPA owners in Texas. An out-of-state firm's Firm Organization Fee will be based on the number of CPA owners, CPA employees, and the number of non-CPA owners that reside in the state of the out-of-state firm.
- The Office License Fee is the annual fee the firm will pay (in advance) for each office it operates in Texas. An out-of-state firm should register only its primary office location. This fee is calculated from the date the firm begins practicing public accountancy in Texas through its annual "renewal month" assigned by the Board.
- After the initial set-up and first payment of your firm registration, you will be able to update and pay future license renewals through our online services for firms at the Board's home web site.
Step Three: Receiving Your Firm License
- After the Board receives the required fees and registration package and finally approves the firm, the firm will be sent a license to practice public accountancy.
The forms and documents that further explain the registration process and requirements are listed below:
Required Forms and Documents:
Forms and documents that are available on-line: