Registration to be a Nonlicensee CPA Firm Owner

Checklist & Instructions:  Washington State CPA firms are allowed to have nonlicensee firm owners.  (See WAC 4-25-752.)  However, if you are a resident of Washington State and wish to become a nonlicensee owner, you must first register a a resident nonlicensee owner.  The following are required for registration:

1. Application: Submit a complete Registration for a Nonlicensee CPA Firm Owner form and the $330.00 fee. Be sure you complete all sections of the Registration for a Nonlicensee CPA Firm Owner form and sign the affidavit.
2. Qualification Requirements: To qualify to be a nonlicensee CPA firm owner you must:
   1. Be a natural person,
   2. Meet the good character requirements of RCW 18.04.105(1)(a),
   3. Meet the definition of an active individual participant at the CPA firm or affiliated entity’s business. Board rule WAC 4-25-410 provides the following definitions:
      • Active individual participant means a natural person whose primary occupation is at the firm or affiliated entity’s business. An individual whose primary source of income from the business entity is provided as a result of passive investment is not an active individual participant.
      • Affiliated entity means any entity, entities, or persons that directly or indirectly through one or more relationships influences or controls, is influenced or controlled by, or is under common influence or control with other entities or persons. This definition includes, but is not limited to, parents, subsidiaries, investors or investees, coinvestors, dual employment or management in joint ventures or brother-sister entities.
   4. Demonstrate a passing grade of 90% or better on the AICPA's self-study course/examination "Professional Ethics for CPAs."  The AICPA professional ethics examination is available from both the AICPA and the Washington Society of CPAs (see below).  When completing the AICPA ethics examination you must request (on your exam answer form) that the AICPA forward a copy of your exam grade to the Washington State Board of Accountancy.  NOTE: The AICPA can take up to 3 months to process examinations and forward grades to boards of accountancy.  Unfortunately, your Washington state Nonlicensee CPA Firm Owner form cannot be processed by the Washington State Board of Accountancy until we receive notification from the AICPA of your grade of 90% or better.  Because of this, we encourage you to obtain and take the AICPA ethics examination as soon as possible.  For information on obtaining the AICPA ethics examination, please contact either of the following organizations:

   • AICPA: (888) 777-7077; http://www.aicpa.org/members/div/ethics/order.htm
   • WSCPA: (425) 644-8199 or (800) 272-8273 (in WA only), http://www.wscpa.org/wscpa/p6.htm  

To facilitate the processing of your registration, be sure you fully complete all required forms and submit all required information. 

3. When can I hold an ownership interest in a CPA firm?  Washington residents may not hold ownership interest in a CPA firm licensed in Washington State until you receive written notice from the Board of your Washington state registration number.  Your registration is not complete and cannot be processed until all fees, required documentation, required information, and other documentation deemed necessary by the Board are received by the Board.  When the processing of your registration is complete, the Board will mail your registration to the last address you provided to the Board.
4. What other requirements must I meet after my registration is approved by the Board?  You must fully comply with the Public Accountancy Act and all Board rules.  Once you are registered as a nonlicensee CPA firm owner, you are subject to discipline for violation of the Public Accountancy Act or Board rules.  The Board will mail a copy of both the Public Accountancy Act and Board rules along with your completed and approved registration.

Your initial registration will expire on June 30 of the third calendar year following initial issuance of the registration.  In January of the expiration year, the Board will mail you a renewal form.  To qualify to renew your registration, you must complete a four-hour continuing professional education (CPE) course in ethics applicable to the practice of public accounting in Washington state. 

Have questions?  Contact Customer Service at (360) 753-2586.