K.S.A. 1-308
1-308. Entities authorized to practice; annual
registration; fee; partner, shareholder and member requirements; designation of
responsible permit holder; firm name; notification of board upon changes. (a)
Notwithstanding any other provision of
(1) At least one general partner,
shareholder or member thereof must be a certified public accountant of this
state holding a valid permit to practice;
(2) each partner, shareholder or member who
is a certified public accountant thereof personally engaged within this state
in a practice of certified public accounting must be a certified public
accountant of this state holding a valid permit to practice;
(3) each partner,
shareholder or member who is a certified public accountant thereof must be a
certified public accountant in some state in good standing;
(4) each resident manager in charge
of an office of the firm in this state must be a certified public accountant of
this state holding a valid permit to practice; and
(5) at
least a simple majority of the ownership of the firm, in the terms of equity
capital and voting rights of all partners, shareholders and/or members, belongs
to the holders of valid licenses to practice as certified public accountants in
some state. All nonlicensee
owners must be of good moral character and must be natural persons actively
participating in the business of the firm or entities, such as partnerships,
corporations or other business associations, that are affiliated with the firm,
provided that each ultimate beneficial owner of an equity interest in such an
affiliated entity shall be a natural person actively participating in the
business of the firm or affiliated entity.
Although firms may include nonlicensee owners
there shall be at least one certified public accountant who has ultimate
responsibility for all the services provided by the firm and, the firm and its
ownership must comply with rules and regulations promulgated by the board. Any firm which is denied registration
pursuant to this section shall be entitled to notice and an opportunity to be
heard pursuant to the
(b) A professional corporation in
partnership with one or more corporations or individuals shall not be
registered with the board as a partnership unless such a partnership was
registered prior to January 1, 2007.
(c) The term “resident” as used in
this section, shall include a person engaged in practice as a certified public
accountant in this state, who spends all or the greater part of such person’s
time during business hours in this state, but who resides in another state.
(d) Each firm shall register prior
to engaging in the practice of certified public accountancy in this state and
shall renew the firm’s registration annually.
Each firm shall designate a permit holder of this state who is
responsible for the proper registration of the firm and shall identify that
individual to the board by affidavit of a general partner, manager or officer
of the firm. A fee may be charged for
the registration of a firm.
(e) A firm that is not registered in accordance with this section shall
not use the words “certified public accountants” or the abbreviation “CPA” in
connection with its name. Notification
shall be given the board, within one month, after the admission or withdrawal
of a partner, shareholder or member from any firm so registered. Firms which fall out of compliance with the
provisions of this section due to changes in firm ownership or personnel shall
take corrective action to bring the firm back into compliance as quickly as
possible. The board may grant a
reasonable period of time for a firm to take such corrective action. Failure to bring the firm back into
compliance within a reasonable period as determined by the board will result in
the suspension or revocation of the firm permit.