Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 2010 - Missouri State Board of Accountancy › Chapter 2 - General Rules › Section 20 CSR 2010-2.095 - Ownership of CPA Firms

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule clarifies the statutes pertaining
				  to ownership of certified public accounting firms.
(1) Limited Liability Companies (L.L.C.).
(A) Ownership. Only the following may have a
				member's interest in a L.L.C.:
1. A majority
				ownership shall consist of natural persons who hold a license as a certified
				public account (CPA) to practice public accounting issued by this state,
				another state or territory of the United States or the District of Columbia, or
				any state, country or province of another country, or holds a foreign
				designation recognized by the board to be substantially equivalent if the other
				state or country or province of another country grants reciprocity licensure to
				holders of C PA licenses issued by this state. A minority ownership shall
				consist of natural persons who are active individual participants in the firm
				or affiliated entities. All ownership shall comply with section
				326.289,
				RSMo, and all other provisions of Chapter 326, RSMo, and the board's
				rules;
2. Domestic or foreign
				general partnerships, including limited liability partnerships, in which all of
				the partners who have a majority of ownership hold an active license as a C PA
				to practice public accounting issued by this state, another state or territory
				of the United States, the District of Columbia or any other country or state or
				province of another country, or holds a foreign designation recognized by the
				board to be substantially equivalent, if the other country or state or province
				of another country grants reciprocity licensure to holders of C PA licenses
				issued by this state. A minority ownership shall consist of natural persons who
				are active individual participants in the firm or affiliated
				entities;
3. Professional
				corporations holding a permit to practice public accounting issued by this
				state or foreign professional corporations authorized by law in this state to
				practice public accounting. All shareholders of either a domestic or foreign
				professional corporation shall own their shares in their own right and shall be
				the beneficial owners of the equity capital ascribed to them;
4. Limited liability companies (L.L.C.)
				holding a permit to practice public accounting issued by this state or foreign
				L.L.C. authorized by law in this state to practice public accounting, provided
				that all non-CPA members are active individual participants in the firm or
				affiliated entities. All members of either a domestic or foreign L.L.C. shall
				own their member's interest in their own right; and
5. Trusts, created pursuant to revocable
				trust agreements, of which the trustee is a natural person who holds a license
				as a CPA to practice public accounting issued by this state, another state or
				territory of the United States or District of Columbia, provided that the
				trustee is also the settler and beneficiary of the trust during his or her
				lifetime. If there are multiple trustees, a majority shall hold a license as a
				C PA to practice public accounting issued by this state, another state or
				territory of the United States or the District of Columbia. Any trustees who
				are not licensed CPAs shall be active individual participants in the
				firm.