Firms with non-CPA ownership will not be allowed to register in New York State. New York law does not permit firms that have unlicensed ownership to register or practice public accountancy. A majority of the firm’s owners must be CPAs in terms of numbers, financial interest, and voting rights. Non-CPA owners would be permitted to use the title partner or shareholder but not hold themselves out to be CPAs. They would have to abide by the AICPA Code of Conduct. Most states require that a simple majority interest in a CPA firm be held by CPAs. In those states, non-CPAs can own up to 49% of a CPA firm. Delaware requires 100% ownership by licensed individuals if firm owners hold themselves out as CPAs.
New York is currently one of only five states that require 100% ownership of CPA firms by CPAs. This affects the mobility of multistate firms when moving personnel between states. Allowing minority non-CPA ownership could improve staff retention amid intense competition. With looming tax law changes, New York needs every competitive edge.
Governor Cuomo’s 2019 budget includes proposed legislation allowing non-CPA ownership of firms. The NYSSCPA has supported this for five years so New York firms remain competitive as structures change to include more non-CPAs. Accountants earn a respectable median income over $120,000. Unlike high finance, CPAs tend to be conservative in work and lifestyle. Lucrative salaries are based on demand, making accounting one of the best business careers.