Nebraska Administrative Code › Topic - BOARD OF PUBLIC ACCOUNTANCY › Title 288 - REVISED AND SUBSTITUTED RULES OF THE BOARD › Chapter 11 - FORMS OF PRACTICE AND GENERAL REQUIREMENTS › Section 288-11-001 - Definitions

Current through June 17, 2024
001.01 For purposes of these rules, "actively
				participate" means the providing of personal services in the business entity
				licensed in Nebraska to practice public accounting, in the nature of
				management, performance of services for clients, or similar activities.
				Non-natural persons and individuals whose primary source of income from the
				business entity is provided as a result of passive investment will not be
				considered as actively participating in the business entity.
001.02 For purposes of these rules, an
				"owner" is defined as a person who directly or indirectly (a) has an interest
				in profits and losses of such business entity, or (b) owns all, or any portion,
				of the equity capital of such business entity, or (c) has a vote with respect
				to matters of such business entity.
001.03 For purposes of these rules, a
				"principal" is defined as an owner who actively participates in a business
				entity licensed in Nebraska to practice public accounting, and who is not
				licensed in this state or any other state or jurisdiction as a certified public
				accountant.
001.04 For purposes of
				these rules, "profits and losses" are defined as the net taxable income or
				loss, determined prior to payment of any form of compensation to owners, of a
				business entity licensed in Nebraska to practice public accounting.
001.05 For purposes of these rules, "equity
				capital" is defined as (a) capital stock, capital accounts, capital
				contributions, or undistributed earnings of a business entity licensed in
				Nebraska to practice public accounting; and (b) loans and advances to a
				business entity licensed in Nebraska to practice public accounting, made or
				held by its owners. "Equity capital" does not include an interest in bonuses,
				profit sharing plans or defined benefit plans or loans to a business entity
				licensed in Nebraska to practice public accounting from banks, financial
				institutions or other third parties that do not actively participate in such
				business entity.
001.06 For
				purposes of these rules, a "business entity" is defined as a proprietorship,
				partnership, professional corporation, limited liability company or any other
				permissible form of practice which is licensed in Nebraska to practice public
				accounting.
001.07 For purposes of
				these rules and the Public Accountancy Act, "holding themselves out to the
				general public" is intended to encompass those situations dealing primarily
				with the promoting, marketing, and practice of public accountancy with clients
				and potential clients. It is not intended to encompass business and similar
				situations where disclosure of one's status as an owner, partner, shareholder,
				limited liability company member, director or otherwise would not be in
				violation of the general intent of these rules and is reasonable or necessary
				under the circumstances of a particular situation or business
				transaction.