What’s in a name? Turns out, a lot
BOA Business
Anne Janotta Erickson, MNCPA membership marketing team leader | February/March 2023 Footnote
Editor's note: Updated January 31, 2023
“What’s in a name? That which we call a rose by any other name would smell just as sweet.”
The Minnesota Board of Accountancy (BOA) begs to differ, Mr. Shakespeare.
You see — when it comes to CPA firms — names do have meaning. There’s information to be gleaned based solely on the name of your firm. If that name is misleading, the public could be harmed.
The BOA has spelled out rules regarding how a firm can be named in Minnesota Rules 1105.6300 and 6400. We’ll break it down for you right here.
Know your naming rights
All CPA firm names, as well as any doing-business-as (dba) names, must be registered and approved by the BOA. Double check that your name is consistent with what’s on file with the Minnesota Secretary of State’s records. This is true right down to the business structure noted, such as LLC or LTD.
The BOA does not allow misleading firm names, so take heed when deciding what to call your firm. Common errors include, but are not limited to, firm names that:
- Include the name of a CPA whose certificate has been revoked.
- Claim to be something that can’t be proven, such as The Most Awesome CPA Firm, LLC.
Timing is everything
CPA firms have 30 days following a name change to notify the BOA. Submit this in writing. Be aware that the firm cannot operate under the new name until it has been approved by the BOA.
Missing the 30-day window is a compliance no-no. Rectify the issue within 60 days or risk having your firm permit suspended or revoked.
Let’s get specific
Naming guidelines are different for CPA firms and sole proprietors.
CPA firms
- The firm name must include the surname or initials of one or more present or former partners, members or shareholders.
- Non-CPA owners can be listed in a firm’s name provided the CPA designation is not also used within the name.
- Words such as company, associates or group imply that more than one CPA works within the firm. To use such words within a firm’s name, at least two active CPAs must work full time within the firm. Enrolled agents do not count.
Sole proprietors
- The firm name must include the owner’s surname.
- Initials are not allowed.
Changing your name?
Legal entity changes require a CPA firm to apply for a new firm permit. Do so by using the BOA’s CPA Firm Permit application.
Name changes that don’t involve changing a CPA firm’s legal entity must submit the proper paperwork specific to their firm type.
CPA firms
- Verify the new firm name’s availability through the Minnesota Secretary of State.
- Update your firm’s Articles of Incorporation or Certificate of Authority through the Minnesota Secretary of State.
- Complete and submit to the BOA the BOA’s CPA Firm Name Change Request form as well as updated documentation from the Minnesota Secretary of State.
Sole proprietor firms
- Complete and submit to the BOA the BOA’s CPA Sole Proprietor Firm Name Change Request form.
Note: Sole proprietor firms don’t register with the Secretary of State.
Mistakes to avoid
Procrastination
The BOA’s Board, not staff, must approve your firm name before you can use it. The approval process happens at Board meetings, which are held roughly eight times a year. If you know your firm’s name is changing, don’t procrastinate. The Name Change Request form, like a firm permit application, must be received no later than 10 business days before the date of the Board meeting.
Bad timing
You cannot change your firm name using the BOA’s firm permit renewal form. Name changes are a separate process that must be completed prior to renewal.
Questions?
The Minnesota BOA can be reached at 651-296-7938 or www.boa.state.mn.us.
The MNCPA is here to help! Call us at 952-831-2707 or email
customerservice@mncpa.org.
