In part two of the professional corporation series, I discuss starting an accounting firm.
In Colorado, the Colorado State Board of Accountancy regulates certified public accountants. When a company starts offering certified public accounting services for a fee, the company must register with the State Board of Accountancy within 90 days. To qualify to operate as an accounting firm, at least one owner must be a certified public accountant and if there are multiple owners, there are guidelines about the percentage of owners that must be certified public accountants.
The owners must form the accounting firm primarily to provide accounting services. In some cases, the firm may provide other services. All owners may be liable for the errors made by other owners or employees unless liability insurance is in effect. In some cases, owners may still be liable even with proper insurance. If the company opens offices in other states, further documentation and insurance may be required.
As the above requirements are only some of the rules an accounting firm needs to follow, if you are an accountant looking to start a company, please contact me if you need help to ensure that accounting firm meets Colorado legal requirements.