Current through September 24, 2024
(1) A CPA or PA firm name must be registered
with and approved by the Board.
(2)
The Board shall not approve a CPA or PA firm name that is misleading.
(3) Reasons that a firm name may be
considered misleading include, but are not limited to:
(a) Containing any representation that would
likely cause a reasonable person to misunderstand or be confused about the form
of the legal entity of the firm in regards to ownership or organization, which
includes but is not limited to:
1. Implying
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;
2. Implying the existence of a partnership
when there is not a partnership, such as by use of the terms "partnership" or
"limited liability partnership" or the abbreviation "LLP" if the firm is not
such an entity;
3. Including the
name of an individual who is not a CPA if the title "CPAs" is included in the
firm name;
4. Including information
about or indicating an association with persons who are not members of the
firm, except as permitted pursuant to T.C.A. §
62-1-113(i);
or
5. Including the terms "&
Company," "& Associate(s)," or "Group," if the firm does not include, in
addition to the named partner, shareholder, owner, or member, at least one
other unnamed partner, shareholder, owner, member, or staff employee;
(b) Containing any representation
that would likely 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;
(c) Claiming or implying the ability to
influence a regulatory body or official;
(d) Including the name of an owner whose
license has been revoked by the Board for disciplinary reasons, whereby the
licensee has been prohibited from practicing public accountancy or prohibited
from using the title CPA; or
(e)
The firm name is similar to or the same as an existing CPA firm name within the
State of Tennessee.
(4)
The following types of CPA firm names are not in and of themselves misleading
and are permissible so long as they do not violate any other provisions:
(a) A firm name that includes the names of
one or more former or present owners;
(b) A firm name that excludes the names of
one or more former or present owners;
(c) A firm 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;
(d) A firm name that includes the name of a
non-CPA owner if the "CPA" title is not a part of the firm name; or
(e) A firm name that contains an acronym if
all of the words that create the acronym meet all of the other requirements of
Rule 0020-03.-15.
(5)
The Board may approve the use of a firm name if it contains a word or words
other than the name or names of current or former partners, including those
with a nontraditional spelling of a word, so long as the name:
(a) Does not harm or mislead the
public;
(b) Does not compromise the
health, safety, or welfare of the public; and
(c) Does not conflict with any of the other
requirements of Rule 0020-03-.15.
(6) A Network Firm as defined in the AICPA
Code of Professional Conduct (Code) in effect July 1, 2011, may use a common
brand name, or share common initials, as part of the firm name.
(7) A Network Firm as defined in the AICPA
Code of Professional Conduct (Code) in effect July 1, 2011, may use the Network
name as the firm's name, provided it also shares one or more of the following
with other firms in the Network:
(a) Common
control, as defined by generally accepted accounting principles in the United
States, among the firms through ownership, management, or other
means;
(b) Profits or cost,
excluding costs of operating the association, cost of developing audit
methodologies, manuals and training courses, and other costs that are
immaterial to the firm;
(c) Common
business strategy that involves ongoing collaboration amongst the firms whereby
the firms are responsible for implementing the association's strategy and are
held accountable for performance pursuant to that strategy;
(d) Significant professional resources;
or
(e) Common quality control
policies and procedures that participating firms are required to implement and
that are monitored by the association.
(8) A partner or shareholder surviving the
death or withdrawal of all other partners or shareholders may continue to
practice under the partnership or professional association name for up to two
(2) years after becoming a sole practitioner, unless the partner or shareholder
is subject to Rule 0020-03-.15(3)(d).
(9) When a firm name violation is determined
to exist, the firm shall have sixty (60) calendar days after receiving
notification by the Board to come into compliance with all applicable rules and
statutes.
Authority: T.C.A. §§
62-1-105,
62-1-108,
62-1-111,
and 62-1-113.
