An accountancy corporation is a corporation which is registered with the California Board of Accountancy and has a currently effective certificate of registration from the board pursuant to the Moscone-Knox Professional Corporation Act, as contained in Part 4 (commencing with Section 13400) of Division 3 of Title 1 of the Corporations Code, and this article. Subject to all applicable statutes, rules and regulations, an accountancy corporation is entitled to practice accountancy. With respect to an accountancy corporation, the governmental agency referred to in the Moscone-Knox Professional Corporation Act is the California Board of Accountancy.
AccountantsAccountancy Corporations
Section § 5150
This law explains that an accountancy corporation is a type of business allowed to practice accounting in California, provided it is registered and has a certificate from the California Board of Accountancy. It must comply with all relevant laws and regulations, and it falls under the rules of the Moscone-Knox Professional Corporation Act. The California Board of Accountancy is the key government body overseeing these corporations.
accountancy corporation California Board of Accountancy certificate of registration
Section § 5151
This law outlines the process for a corporation to register as an accountancy firm in California. The corporation must provide the board with required documents, a plan of operation, and details for all relevant officers and employees. The board checks if the corporation is properly organized and if those providing services are licensed. Foreign shareholders must prove their qualifications with a certificate and provide an English translation if needed. An officer must sign the application, which should also include the corporation’s email if available.
An applicant for registration as an accountancy corporation shall supply to the board all necessary and pertinent documents and information requested by the board concerning the applicant’s plan of operation. The board may provide forms of application. If the board finds that the corporation is duly organized and existing under the General Corporation Law or the foreign corporation is duly qualified for the transaction of intrastate business pursuant to the General Corporation Law, that, except as otherwise permitted under Section 5053 or 5079, each officer, director, shareholder, or employee who will render professional services is a licensed person as defined in the Moscone-Knox Professional Corporation Act, or a person licensed to render the same professional services in the jurisdiction or jurisdictions in
which the person practices, and that from the application it appears that the affairs of the corporation will be conducted in compliance with law and the rules and regulations of the board, the board shall upon payment of the registration fee in the amount as it may determine, issue a certificate of registration. The applicant shall include with the application for each shareholder of the corporation licensed in a foreign country but not in this state or in any other state, territory, or possession of the United States, a certificate from the authority in the foreign country currently having final jurisdiction over the practice of accounting, which shall verify the shareholder’s admission to practice in the foreign country, the date thereof, and the fact that the shareholder is currently in good standing as the equivalent of a certified public accountant or public accountant. If the certificate is not in English, there shall be included with the certificate a duly authenticated English translation thereof.
The application shall be signed and verified by an officer of the corporation. At the time of application, if the corporation has a valid email address, it shall provide that email address to the board.
accountancy corporation registration plan of operation licensed person
Section § 5152
Accountancy corporations have to regularly submit reports to the board whenever the board asks. These reports should show that the corporation meets all the qualifications and follows the rules set by the board. An officer of the corporation must sign and verify each report to confirm its accuracy.
Each accountancy corporation shall file with the board at the times the board may require a report containing information pertaining to qualification and compliance with the statutes, rules and regulations of the board as the board may determine. All reports shall be signed and verified by an officer of the corporation.
accountancy corporations board reports compliance
Section § 5152.1
Every accounting company in California must renew its practice permit every two years and pay the fee set by the board. When renewing, if the company has an email address, it must share it with the board.
Each accountancy corporation shall renew its permit to practice biennially and shall pay the renewal fee fixed by the board in accordance with Section 5134. At the time of renewal, if the corporation has a valid email address, it shall provide that email address to the board.
accountancy corporation permit renewal biennial renewal
Section § 5154
This law says that every director, shareholder, and officer in an accountancy corporation must be someone who is licensed to perform the professional services offered by the business. There are some exceptions in other specific sections of the law, but generally, everyone at these higher levels must hold the appropriate licenses for their roles.
Except as provided in Section 5079 of this code and in Section 13403 of the Corporations Code, each director, shareholder, and officer of an accountancy corporation shall be a licensed person as defined in the Moscone-Knox Professional Corporation Act, or a person licensed to render the same professional services in the jurisdiction or jurisdictions in which the person practices.
accountancy corporation licensed person Moscone-Knox Act
Section § 5155
This law states that if a shareholder of an accounting firm isn't qualified to perform professional services, any profits from work done during that time can't benefit the shareholder or their shares in the company.
The income of an accountancy corporation attributable to professional services rendered while a shareholder is a disqualified person (as defined in the Moscone-Knox Professional Corporation Act) shall not in any manner accrue to the benefit of such shareholder or his shares in the accountancy corporation.
accountancy corporation disqualified person professional services income
Section § 5156
This law says that an accountancy corporation must follow professional conduct standards, just like individual accountants. They can't do anything that would be considered unprofessional. If they don't follow the rules, they can face the same disciplinary actions, like suspension or revocation of their ability to operate. The process for dealing with violations follows certain government procedures, ensuring fairness in how cases are handled.
An accountancy corporation shall not do or fail to do any act the doing of which or the failure to do which would constitute unprofessional conduct under any statute, rule or regulation now or hereafter in effect. In the conduct of its practice, it shall observe and be bound by such statutes, rules and regulations to the same extent as a person holding a permit under Section 5070 of this code. The board shall have the same powers of suspension, revocation and discipline against an accountancy corporation as are now or hereafter authorized by Section 5100 of this code, or by any other similar statute against individual licensees, provided, however, that proceedings against an accountancy corporation shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the board shall have all the powers granted therein.
accountancy corporation unprofessional conduct disciplinary actions
Section § 5157
This section allows the relevant board to create and enforce rules to ensure that an accountancy corporation's foundation is solid. It should include guidelines for selling shares of an owner who becomes disqualified or dies. Additionally, these corporations must have insurance or adequate security to cover claims from clients related to professional services.
The board may formulate and enforce rules and regulations to carry out the purposes and objectives of this article, including rules and regulations requiring (a) that the articles of incorporation or bylaws of an accountancy corporation shall include a provision whereby the capital stock of such corporation owned by a disqualified person (as defined in the Moscone-Knox Professional Corporation Act), or a deceased person, shall be sold to the corporation or to the remaining shareholders of such corporation within such time as such rules and regulations may provide, and (b) that an accountancy corporation as a condition of obtaining a certificate pursuant to the Moscone-Knox Professional Corporation Act and this article shall provide adequate security by insurance or otherwise for claims against it by its clients arising out of the rendering of professional services.
accountancy corporation board rules disqualified person
Section § 5158
If a business in California offers accounting services, each location must be run by someone who is a certified or licensed accountant.
Each office of an accountancy corporation engaged in the practice of public accountancy in this state shall be managed by a certified public accountant or public accountant.
accountancy corporation practice of public accountancy office management
