Tenn. Comp. R. & Regs. 0020-03-.15 - FIRMS

(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(d) Including the name of an owner whose license has been revoked by the Board for disciplinary reasons, whereby the licensee has been prohibited from practicing public accountancy or prohibited from using the title CPA; or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.

Notes

Tenn. Comp. R. & Regs. 0020-03-.15

Original rule filed June 9, 1981; effective August 18, 1981. Amendment filed February 18, 1993; effective April 3, 1993. Repeal and new rule filed June 10, 1999; effective August 24, 1999. Amendment filed August 15, 2006; effective October 29, 2006. Amendments filed July 5, 2018; effective 10/3/2018.

Authority: T.C.A. §§ 62-1-105, 62-1-108, 62-1-111, and 62-1-113.