{"data":{"id":"us-ky/krs-325.301","jurisdiction":"us-ky","citation":"KRS 325.301","heading":"Firms required to obtain license to practice in Kentucky -- Firms exempted","body":"from licensure requirement -- Criteria for license -- Peer Review Oversight\nCommittee -- Administrative regulations.\n(1) The following firms shall obtain a license to practice in this state:\n(a) Any firm with an office located in this state performing attest services, as\ndefined in KRS 325.220; and\n(b) Any firm with an office in this state that uses the title \"CPA\" or other phrase\nor abbreviation in any manner described  in KRS 325.410 to suggest it is a\ncertified public accounting firm.\n(2) A firm which does not have an office in this state that performs services described\nin KRS 325.220 for a client having its home office located in this state or a client\nwho is a resid ent of this state shall not be required to obtain a license to practice in\nthis state and may use the title \"CPA\" in the name of the firm if:\n(a) The firm complies with the requirements contained in subsections (3)(a) and\n(10) of this section;\n(b) All serv ices provided by the firm are performed by an individual with a\npractice privilege granted under KRS 325.282; and\n(c) The firm can legally provide the services in the state where the individual with\na practice privilege has his or her principal place of business.\n(3) All firms required to obtain a license to practice in this Commonwealth shall meet\nthe following requirements:\n(a) Certified public accountants shall hold fifty -one percent (51%) or more of the\nownership of the firm in terms of financial intere sts and voting rights of all\npartners, officers, shareholders, members, or managers of the firm;\n(b) All owners of the firm who are not certified public accountants shall be\nnatural persons actively engaged in the firm's operations and shall satisfy\nadditional requirements established by the board through promulgation of an\nadministrative regulation;\n(c) The name of the firm shall comply with the requirements of KRS 325.380;\n(d) All certified public accountants who are sole proprietors, partners,\nshareholders, members, officers, directors, or employees of a firm with an\noffice located in this state, who regularly practice in this Commonwealth,\nshall maintain current licenses to practice issued by the board;\n(e) Any individual licensee and any individual qual ifying for a practice privilege\nunder this chapter who is responsible for supervising attest services and signs\nor authorizes someone to sign the report on behalf of the firm shall meet the\ncompetency requirements established by the board through promulgation of an\nadministrative regulation; and\n(f) The firm shall comply with the provisions of this chapter, the administrative\nregulations promulgated by the board, and all other laws of this\nCommonwealth applicable to the firm's particular form of business\norganization.\n(4) Before a firm may practice in this Commonwealth, the firm manager shall:\n(a) Submit an initial application which contains information required by the board\nthrough promulgation of an administrative regulation; and\n(b) Pay a fee not to exceed two hundred dollars ($200) established by an\nadministrative regulation promulgated by the board.\n(5) The firm license shall be renewed on or before August 1 every two (2) years by the\nfirm manager:\n(a) Completing the renewal process  according to the procedures as established in\nadministrative regulation promulgated by the board; and\n(b) Paying the renewal fee, which shall not exceed two hundred dollars ($200), as\nestablished by administrative regulation promulgated by the board.\n(6) If a firm license has been expired for a period of less than one (1) month and the\nfirm has not violated any other provision of this chapter or the accompanying\nadministrative regulations promulgated thereunder, the firm manager may renew the\nlicense by:\n(a) Satisfying all the requirements of this subsection, including any requirements\nestablished by the board through promulgation of an administrative regulation;\nand\n(b) In addition to the renewal fee, paying a late fee not to exceed one hundred\ndollars ($100).\n(7) A firm with a license expired for a period of longer than one (1) month after the\ndate of expiration shall cease operating immediately. The firm shall not operate\nuntil the board approves the issuance of a new license to the firm.\n(8)  Sole proprietors shall comply with the licensing requirements for firms under this\nsection.\n(9) The firm manager shall notify the board in accordance with procedures established\nin an administrative regulation promulgated by the board, of any change in its\nlicensing information within thirty (30) days. Any change in the name of a firm\nshall require the filing of an initial application.\n(10) (a) All firms that perform attest or compilation services shall enroll in, schedule,\nundergo, and complete its peer review in an approved peer review program\nwith standards that are equivalent to or better than the peer review program\nadministered by the American Institute of Certified Public Accountants as\ndetermined by administrative regulations promulgated by the board.\n(b) Every firm shall comply with any requirements or restrictions placed on its\nlicense as prescribed by the board in response to the results of peer reviews;\nand\n(c) Every firm shall allow the sponsoring organization to provide the board access\nto the peer review documents via a secure Web site process, such as\nFacilitated State Board Access and its successor operated by the American\nInstitute of Certified Public Accountants, or similar system operated by\nanother equivalent sponsoring organization.\n(11) Nothing contained in this chapter shall require a certified public accountant or firm\nof certified public accountants licensed by another state to obtain a license to\npractice in this Commonwealth if the certified public accountant or firm of certified\npublic accountants enters this Commonwealth solely to:\n(a) Conduct a peer review of a firm; or\n(b) Perform attestation work, incidental to an engagement which was initiated\nwith a client located outside of the Commonwealth and has extended into the\nCommonwealth due to c ommon ownership or existence of a subsidiary,\nassets, or other operations located within the Commonwealth.\n(12) A Peer Review Oversight Committee may be appointed by the board to monitor the\nboard-approved peer review program, including sponsoring organiza tions. The\npurpose of the committee is to provide reasonable assurance that peer reviews are\nbeing conducted and reported in accordance with peer review standards. The board\nshall promulgate an administrative regulation setting forth the process and\nprocedures of the committee.","path":["KRS Chapter 325"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47505","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:20Z","sha256":"eb36a2b0f67184f47df4e2578ce1495554c9fbd0047917dc05ca6fe5ae4fcccb","source_id":"us-ky","stale":false,"prev":"us-ky/krs-325.300","next":"us-ky/krs-325.310"},"notice":"GroundRules: Original legal text. Not legal advice."}