Current through Register Vol. 35, No. 18, September 24, 2024
A. Misleading firm names: A firm name or
trade name is misleading pursuant to Section 19 of the act if, among other
things, the firm name or trade name:
(1) is
not the lawful and registered name of the firm;
(2) implies the existence of a corporation
when the firm is not a corporation such as through the use of the words
"corporation", "incorporated", "Ltd.", "professional corporation", or an
abbreviation thereof as part of the firm name if the firm is not incorporated
or is not a professional corporation;
(3) implies the existence of a partnership
when there is not a partnership such as by use of the term "partnership",
"limited liability partnership", the abbreviation "LLP", "limited liability
company", or the abbreviation "LLC" if the firm is not such an
entity;
(4) includes the name of an
individual who is not a CPA if the title "CPAs" is included in the firm name or
trade name, except as provided for in Subsection B of 16.60.4.9 NMAC;
(5) includes information about or indicates
an association with persons who are not members of the firm, except as
permitted pursuant to Section 14(i) of the Uniform Accountancy Act;
(6) includes the terms "& company",
"& associate", or "group", but the firm does not include, in addition to
the named partner, shareholder, owner, or member, at least one other
licensee;
(7) contains any
representation that would be likely to cause a reasonable person to have a
false or unjustified expectation of favorable results or capabilities, through
the use of a false or unjustified statement of fact as to any material
matter;
(8) claims or implies the
ability to influence a regulatory body or official;
(9) includes the name of an owner whose
certified public accountant license has been revoked for disciplinary reasons
by the board, whereby the licensee has been prohibited from practicing public
accountancy or prohibited from using the title CPA or holding himself out as a
certified public accountant for more than 90 days after revocation of the
license.
B. Permissible
firm names: The following types of CPA firm names are not in and of themselves
misleading and are permissible:
(1) a firm
name or trade name that includes the names of one or more former or present
owners;
(2) a firm name or trade
name that excludes the names of one or more former or present owners;
(3) a firm name or trade name that uses the
"CPA" title as part of the firm name when all named individuals are owners of
the firm who hold such title or are former owners who held such title at the
time they ceased to be owners of the firm;
(4) a firm name or trade name that includes
the name of a non-CPA owner if the "CPA" title is not a part of the firm
name.
C. Name of firm
formed as a single member limited liability company (LLC): A firm which is
organized as a single member LLC under the Limited Liability Company Act,
Sections
53-19-1 to
53-19-74
NMSA 1978, or similar acts of other states may be required by the applicable
LLC act to include the word "company" or "Co." in its name. For purposes of
compliance with the act, the firm name shall not include more than one person's
name and shall not include "and", "&" or a similar term with respect to
"company" or "Co." in a manner which would imply that there was more than 1
owner of the firm.
D. Network
firms: A network firm as defined in the AICPA code of professional conduct in
effect July 1, 2011 may use a common brand name, or share common initials, as
part of the firm name. Such a firm may use the network name as the firm's name,
provided it also shares one or more of the following characteristics with other
firms in the network:
(1) common control, as
defined by generally accepted accounting principles in the United States, among
the firms through ownership, management, or other means;
(2) profits or costs, excluding costs of
operating the association, costs of developing audit methodologies, manuals and
training course, and other costs that are immaterial to the firm;
(3) common business strategy that involves
ongoing collaboration among the firms whereby the firms are responsible for
implementing the association's strategy and are held accountable for
performance pursuant to that strategy;
(4) significant part of professional
resources;
(5) common quality
control policies and procedures that participating firms are required to
implement and that are monitored, as defined by peer review standards, by the
association.
