201 KAR 1:081 - Firm license, renewal, and reinstatement

Sep 4, 2026

Uploaded by Rhys

Administrative regulation 201 KAR 1:081 sets out Kentucky procedures governing firm licensure for firms practicing as required by KRS 325.301. It defines key terms for certified public accountant owners, firm managers, and nonlicensed owners, and establishes application requirements for initial licensure with specified fees. It details renewal and late-renewal steps, including an online renewal system and paper-request alternatives, plus rules on prohibited operation when expired, required updates of firm information, and authorization to continue use of a registered firm name after certain member deaths or retirements.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages2

Reading Time5 min

AccessFree to download

Section 1. Definitions

Section 2. Initial license to practice (firm manager)

Section 3. Initial license to practice (sole proprietor)

Section 4. Duties of a certified public accountant

Section 5. Restrictions on nonlicensed owners

Section 6. Renewal of a firm license

Section 7. Late renewal and correction of information

Section 8. Prohibition during extended expiration

Section 9. Changes in firm information

Section 10. Continuation of firm name after death or retirement

Section 11. Registered firm name requirement

Section 12. Materials incorporated by reference

201 KAR 1:081. Firm license, renewal, and reinstatement. RELATES TO: KRS 325.220(6), 325.301, 325.380 STATUTORY AUTHORITY: KRS 325.240(2), 325.301(4),(5),(6),(7),(8) NECESSITY, FUNCTION, AND CONFORMITY: KRS 325.240(2) authorizes the Kentucky State Board of Accountancy to promulgate administrative regulations for the administration of KRS Chapter 325. KRS 325.301(4) through (8) require the board to promulgate administrative regulations concerning applications, renewals, and related fees. This administrative regulation establishes the procedures for firms to obtain and renew a license to practice as required by KRS 325.301. Section 1. Definitions. (1) "Certified public accountant owner" means a certified public accountant with a current and active license to practice issued by a state board of accountancy and who is operating a public accounting firm as a: (a) Shareholder in a corporation; (b) Partner in a partnership or registered limited liability partnership; (c) Member of a limited liability company; or (d) Sole proprietor. (2) "Firm" is defined by KRS 325.220(3) . (3) "Firm manager" is defined by KRS 325.220(4) . (4) "Nonlicensed owner of the firm" means a person referred to in KRS 325.301(3)(b) . Section 2. To obtain an initial license to practice, the firm manager shall submit: (1) A completed Instate Application form; and (2) A check or money order made payable to the Kentucky State Board of Accountancy in the amount of $100. This fee shall be nonrefundable. Section 3. To obtain an initial license to practice, a sole proprietor shall submit: (1) A completed Sole Proprietor Firm Application form; and (2) The fee required by Section 2(2) of this administrative regulation. Section 4. A certified public accountant shall: (1) Have ultimate responsibility for all services provided by the firm; (2) Have ultimate authority over any unit, division, or branch of the firm that performs attest services; and (3) Comply with the Statement on Quality Control Standards, January, 2012, issued by the American Institute of Certified Public Accountants Auditing Standards Board, as incorporated by reference. Section 5. A nonlicensed owner of the firm shall not sell or otherwise transfer any ownership interest in the firm to any person who fails to satisfy the requirements of KRS 325.301(3) . Section 6. Renewal of a Firm License. (1) Except as provided in subsection (2) of this section, a firm manager shall renew a firm license by: (a) Using the online Firm License Renewal System offered by the board at [www.cpa.ky.gov](www.cpa.ky.gov); and (b) Paying a nonrefundable renewal fee in the amount of $100. (2) If a firm manager is unable to use the online procedure, he or she shall: (a) Submit a written request to obtain a paper copy of the Firm License Renewal form to the Kentucky State Board of Accountancy, 332 W. Broadway, Suite 310, Louisville, Kentucky 40202; (b) Complete and submit the form to the board; and (c) Submit a check or money order made payable to the Kentucky State Board of Accountancy in the amount of $100. This fee shall be nonrefundable. (3) A sole proprietor shall renew his or her firm license according to the procedures contained in this section. Section 7. (1) A firm manager who fails to renew the firm license by the August 1 deadline shall renew the license on or before September 1 by: (a) Utilizing the online Firm License Renewal System offered by the board at [www.cpa.ky.gov](www.cpa.ky.gov); (b) Paying the nonrefundable $100 renewal fee; and (c) Paying a nonrefundable $100 late fee. (2) A firm manager shall correct any outdated or inaccurate information listed on the Firm License Renewal System except for a change in the name of the firm. Section 8. A firm is prohibited from operating and holding out as a CPA firm if the firm license is expired for a period of more than one (1) month. Section 9. Changes in firm information. A firm manager shall

FAQs

What does 201 KAR 1:081 cover for CPA firms?

It sets procedures for obtaining an initial firm license, renewing the license, handling reinstatement-related timing, and related compliance requirements for firm operation and information updates.

How does a firm manager renew a firm license under this regulation?

The firm manager renews using the board’s online Firm License Renewal System and pays a nonrefundable renewal fee, with a paper-request process when online renewal is not possible.

What happens if the firm license renewal deadline is missed?

If renewal is not completed by the August 1 deadline, the firm manager must renew on or before September 1, pay the required renewal fee, and pay an additional nonrefundable late fee.

Sep 4, 2026

Uploaded by Rhys