CPA Firm Requirements

The Kentucky Board of Accountancy licenses firms and individual CPAs. A firm may take the form of a sole proprietorship, a professional service corporation, a partnership, a limited liability company, or any other business form allowed by law.

Sole Proprietorships - A person operating as a sole proprietor merely needs to write a letter to the Board indicating the mailing address and phone number of their practice. Sole proprietorships are designated as firms and must comply with all firm requirements.

A change to the Accountancy Law enacted during the 2002 General Assembly allows sole proprietors to use "and Company" or "and Associates" in their firm names. 

CPA Firms - All other firms shall submit an Initial Firm Registration Form (PDF Format - 558K) with a check made payable to the State Board in the amount of $100 for a two-year license:

Kentucky State Board of Accountancy
332 W. Broadway, Suite 310
Louisville, KY 40202
Phone: (502) 595-3037
Fax: (502) 595-4500

All business forms allowed by law, except for a sole proprietor or general partnership, must be registered with the Kentucky Secretary of State's Office prior to registering with the State Board. For the requirements and registration materials of that office, contact the Secretary of State.  Submit a copy of your approved registration from the Secretary of State with the State Board firm registration form.

All offices of CPA firms must be registered with the Board.  To register a Branch Office, download the Firm Change Form (PDF Format - 469K). There is no fee for branch office registrations and it's not required that a CPA staff this office at all times.

Mandatory peer review exists for firms performing any attest services, which include audits, reviews and compilation reports.  The Board requires that all firms provide information regarding their practice and whether or not they are issuing reports.  If issuing reports, enrollment and completion of a peer review must be documented and submitted to the Board.

Prior to performing any attest services, the firm must become enrolled in one of the following approved peer review programs: 

• The Kentucky Society of CPAs.  The contact person is L. Christine Vaughan, Peer Review Administrator, KSCPA, 1735 Alliant Ave., Louisville, KY  40299, (502) 266-5272.  The Society has also agreed to perform peer reviews for firms and licensees that are not Society members.  You may want to visit the Society's website before calling Christine. The site is an excellent source of information including enrollment forms that you can download under the "What is Peer Review" section.
   
• National Conference of CPA Practitioners (NCCPAP).  The contact person is James J. Hand, III, CPA, LaPorte, Sehrt, Romig & Hand, 110 Veterans Memorial Blvd., #200, Metarie, LA, (504) 835-5522, ext. 3116.  

The firm manager shall notify the Board on a Firm Change Form (PDF Format - 469 K) of any change in the firm filing within thirty days of the occurrence.

If a firm consists of only two CPA owners, upon the death or retirement of an owner the firm may request a period of up to two years to continue use of the firm name. It should be noted that retirement means complete retirement, not withdrawal from the firm.

Note that a firm name indicating two persons when there is only one owner could be potentially misleading to the public.

Each firm shall renew its permit to practice every two years. In May of the firm's renewal year, the Board will send the firm a computer-generated notice containing current firm information. The CPA manager shall, if necessary, correct any preprinted information on this document and return it to the State Board with a check in the amount of $100.

Sole Proprietors – Sole proprietors are not required to submit a separate renewal form for their firm license.  Instead, they renew by submitting their individual license renewal notice with the sole proprietor registration portion completed.  No additional firm fee is required for a sole proprietorship.

Peer Review – All firms (including sole proprietorships) are required to be enrolled in an approved peer review program if they are performing attest services.  Attest services include issuing audits, reviews or compilations.  Documentation of enrollment consists of providing a copy of the most recent peer review acceptance letter received from the Report Acceptance Body (RAB) to the Board immediately upon receipt.  This letter will indicate that your review was accepted and contain the date of the next scheduled peer review.