Vermont § 74 - Firms; registration and ownership

§ 74. Firms; registration and ownership

• (a) A firm shall be required to obtain registration pursuant to this section if the firm: (1) has an office established or maintained in this State for the practice of public accounting; (2) has an office established or maintained in this State that uses the title “CPA” or
  “CPA firm”; or (3) does not have an office in this State but performs services described in subdivision
  13(1)(A)(i), (iii), or (iv) of this chapter for a client with a home office in this
  State. (b) A firm that does not have an office in this State may perform those services set forth
  in subdivision 13(1)(A)(ii), 13(1)(A)(v), or 13(3) of this chapter for a client with
  a home office in this State, may otherwise practice public accounting as authorized
  under this chapter, and may use the title “CPA” or “CPA firm” without a registration
  issued only if the firm: (1) meets the qualifications set forth in subsections (c) and (d) of this section; (2) meets the requirements of subsection 75(c) of this chapter, as applicable; and (3) performs services through an individual with practice privileges set forth under section
  74c of this chapter. (c) An applicant for initial registration or renewal under this section shall be required
  to show that, notwithstanding any other provision of law, a simple majority of the
  ownership of the firm, in terms of equity, creditor and voting rights of all partners,
  officers, members, shareholders, or managers, belongs to holders of a certificate
  who are licensed in some state, and such partners, officers, members, shareholders,
  or managers, whose principal place of business is in this State, and who perform professional
  services in this State, hold a valid license issued under this chapter. Although firms
  may include nonlicensee owners, the firm and its ownership must comply with the rules
  adopted by the Board. (d) Any CPA or RPA firm as defined in this chapter may include nonlicensee owners, provided
  that: (1) The firm designates a licensee of this State or, in the case of a firm that is required
  to have a registration pursuant to subsection (a) of this section, a licensee who
  meets the requirements set forth in section 74c of this chapter who is responsible
  for the proper registration of the firm, and identifies that individual to the Board. (2) All nonlicensee owners are active individual participants in the CPA or RPA firm or
  affiliated entities. (3) The firm complies with other requirements as the Board may impose by rule. (e) Any individual licensee who is responsible for supervising attest services and signs
  or authorizes someone to sign the accountant’s report on behalf of the firm shall
  meet the experience and competency requirements set out in the professional standards
  for such services. (f) Any individual exercising practice privileges pursuant to section 74c of this chapter,
  and who is responsible for supervising attest services and signs or authorizes someone
  to sign the accountant’s report on behalf of the firm, shall meet the experience and
  competency requirements set forth in the professional standards for those services. (g) Each office in this State shall be under the supervision of a public accountant who
  is licensed in this State. (Added 1975, No. 89, § 13; amended 1981, No. 161 (Adj. Sess.), § 2; 1991, No. 167 (Adj. Sess.), § 10; 1997, No. 59, § 48, eff. June 30, 1997; 1999, No. 133 (Adj. Sess.), § 4; 2001, No. 129 (Adj. Sess.), § 12; eff. June 13, 2002; 2007, No. 29, § 13; 2009, No. 35, § 9; 2017, No. 48, § 9; 2019, No. 178 (Adj. Sess.), § 5, eff. Oct. 1, 2020.)