Registration Of A Firm Practicing Public Accountancy As A Sole Proprietorship
General Instructions:
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.
• The Office License Fee is the annual fee the firm will pay (in advance) for each office it operates. This fee is calculated from the date the firm begins practicing public accountancy through its annual “renewal month” assigned by the Board. (As of January 1, 2007, each firm will have an assigned renewal month that will determine when all future annual renewals are due.
• During the 2007-2008 transition period to year-round firm licensing, fee notices may cover from 13 months to 24 months, depending on renewal month, but all subsequent notices will cover only a 12-month period.) The Board will make the necessary calculations and include in the packet, Office Notices giving the amount due for each office of the firm.
• The Firm Organization Fee is based on (1) the number of Texas CPAs who are shareholders, incorporators, officers, or directors; (2) the number of Texas CPAs who are employees of the firm; and (3) the number of non-CPA owners in Texas. A worksheet will be provided to facilitate this calculation.
• To understand the annual renewal process, click on this link to review a sampleannual renewal package and instructions.
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:
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Forms and documents that are available on-line:
Application for Registration of Firm Office(s) (L0011) (fillable)
The Peer Review Program Overview (L0030)
Peer Review Reporting (L0014) (fillable)
Affidavit for Exemption from Peer Review (L0031) (fillable)
Instructions for Completing the Application as a Non-CPA Owner of a Firm in Texas (L0023)
Application for Non-CPA Owner in a Firm in Texas (L0022) (fillable)