Form of Organization and Names

Question 1

What are the basic forms of organizations?

Answer 1

Basis Rule:
- MIPPS may practice only in a form of organizations permitted by law (Partnerships, LLP, LLC, LLLP, etc). Any one that is permissible by law.

Question 2

What are the basic rules for names of your organization?

Answer 2

• MIPPS may not practice under a firm name that is misleading (example: Arther Anderson and Arther Andersen… different spelling)
• Name of past owners may be included in the name of the organization.
• A firm may not designate designate itself as “Members of the AICPA” unless ALL members owners are members of the AICPA.

Question 3

What are the ownership rules of a separate business?

Answer 3

• members may own interest in a business that is NON-ATTEST work
• If the member controls the separate business, then its owners and professional employees must comply with the code.

Question 4

What are the rules for partner designation?

Answer 4

Only members of a firm who are LEGALLY partners should use the designation “Parter”

Question 5

If you are a member and an employee of a firm or business made up of one or more nonmembers, what are the rules

Answer 5

• Still comply with the code

- If that person is a partner, he/she is responsible for the firm’s professional employees

Question 6

If two merge, how does that impact the company name?

Answer 6

If two firms merge, they may use in the newly formed firm’s name the name of retired or other partners in either or both of the former firms. (Ernst and Young were to firms that combined into Ernst & Young)