Out-of-State CPA Firm Requirements

Many times, out-of state firms have a need to either enter the state to perform work or bid on engagements for Kentucky entities.  If an out-of-state firm is engaged to perform attestation services for a Kentucky entity, both the firm and each individual working on the engagement must have a Kentucky license. 

If the service being performed will be a one-time engagement, the partner in charge of the engagement must have a license in order to license the firm.   This license can be issued by substantial equivalency.  

If the service being performed will be done on an on-going basis, the individuals will need to be licensed under the reciprocal licensing standards.

See Registration Requirements for firm registration forms.

In certain circumstances, out-of-state CPAs or CPA firms may enter the state to perform work without a Kentucky license.  KRS 325.301(7) states the following:

"(7) Nothing contained in this chapter shall require a certified public accountant or firm of certified public accountants licensed by another state or foreign country to obtain a license to practice in this Commonwealth if the certified public accountant or firm of certified public accountants enter this Commonwealth solely to:

• Conduct a peer review of a firm; or
   
• Perform attestation work, incidental to an engagement which was initiated with a client located outside of the Commonwealth and has extended into the Commonwealth due to common ownership or existence of a subsidiary, assets, or other operations located within the Commonwealth."

If you have questions about your particular situation, please contact the Board office to determine whether or not you will need to be licensed.