# Business Occupations and Professions (GBO) ## Title 2. Accountants ### Subtitle 4. Permits #### Section 2-401 (a) A firm shall hold a permit issued by the Board if the firm: (1) has an office in this State that performs attest services as defined in Sec. 2-101(c) of this title; or (2) has an office in this State that uses the title "CPA" or "CPA firm". (b) A firm that does not have an office in this State may perform attest services as defined in Sec. 2-101(c) of this title for a client in this State without a permit if the firm: (1) meets the application and peer review requirements under Sec.Sec. 2-402, 2-402.1, and 2-403 of this subtitle and Sec. 2-4A-02 of this title; and (2) performs services through an individual with a practice privilege under Sec. 2-321 of this title in the state where the individual with a practice privilege retains a principal place of business. (c) The Board shall grant or renew a permit to practice as a CPA firm to a partnership, limited liability company, or corporation that demonstrates its qualifications in accordance with this section. (d) If a firm does not meet the requirements of this section, the firm may perform professional services other than attest services while using the title "CPA" or "CPA firm" in this State without a permit, if the firm: (1) performs those services through an individual with a practice privilege provided under Sec. 2-321 of this title; and (2) performs those services in the state where the individual with a practice privilege retains a principal place of business. #### Section 2-402 (a) To qualify for a permit, a partnership shall meet the requirements of this section. (b) The partnership shall: (1) have at least a simple majority of the partners, officers, shareholders, members, or managers, in terms of financial interest and voting rights, be licensed in a state; (2) (i) have a permanent office in the State from which an individual is licensed to practice certified public accountancy; or (ii) have at least a simple majority of the partners, officers, shareholders, members, or managers retain a principal place of business in this State; (3) hold a valid license issued under Sec. 2-301 of this title; and (4) comply with regulations promulgated by the Board. (c) An individual who is not licensed to practice certified public accountancy in this State or another state may have an ownership interest in the partnership if: (1) a simple majority of the ownership of the partnership, in terms of financial interests and voting rights, is held by individuals licensed to practice certified public accountancy in this or another state; (2) the individual is an active participant in the partnership or its affiliated entities; (3) the partnership designates, to the Board, a licensee of this State, or a qualified licensee of another state who is responsible for the registration of the partnership; and (4) the partnership complies with regulations adopted by the Board. (d) At least 1 general partner and any other partner who practices or intends to practice certified public accountancy in the State shall be licensed by the Board to practice certified public accountancy in the State or qualify for a practice privilege under Sec. 2-321 of this title. #### Section 2-402.1 (a) To qualify for a permit, a limited liability company shall meet the requirements of this section. (b) The limited liability company shall: (1) have at least a simple majority of the officers, shareholders, members, or managers, in terms of financial interest and voting rights, be licensed in a state; (2) (i) have a permanent office in the State from which an individual is licensed to practice certified public accountancy; or (ii) have at least a simple majority of the officers, shareholders, members, or managers retain a principal place of business in this State; (3) hold a valid license issued under Sec. 2-301 of this title; and (4) comply with regulations adopted by the Board. (c) An individual who is not licensed to practice certified public accountancy in this State or another state may have an ownership interest in the limited liability company if: (1) a simple majority of the ownership of the limited liability company, in terms of financial interests and voting rights, is held by individuals licensed to practice certified public accountancy in this or another state; and (2) the individual is an active participant in the limited liability company or affiliated entities. #### Section 2-403 (a) To qualify for a permit, a corporation shall meet the requirements of this section. (b) The corporation shall meet the applicable requirements of the Maryland Professional Service Corporation Act or of the comparable law in another state. (c) The corporation shall: (1) have at least a simple majority of the officers, shareholders, members, or managers, in terms of financial interest and voting rights, be licensed in a state; (2) (i) have a permanent office in the State from which an individual is licensed to practice certified public accountancy; or (ii) have at least a simple majority of the officers, shareholders, members, or managers retain a principal place of business in this State; (3) hold a valid license issued under Sec. 2-301 of this title; and (4) comply with regulations adopted by the Board. (d) An individual who is not licensed to practice certified public accountancy in this State or another state may have an ownership interest in the corporation if: (1) a simple majority of the ownership of the corporation, in terms of financial interests and voting rights, is held by individuals licensed to practice certified public accountancy in this or another state; (2) the individual is an active participant in the corporation or affiliated entities; (3) the corporation submits to the Board the name of a licensee of this State, or, if applicable, a licensee of another state with a practice privilege in this State who is responsible for the registration of the corporation; and (4) the corporation complies with any other requirements that the Board imposes. #### Section 2-404 (a) An applicant for a permit shall: (1) submit to the Board an application on the form that the Board provides; and (2) pay to the Board a nonrefundable application fee set by the Board. (b) In addition to any other information required on an application form, the form shall require: (1) for a partnership applicant, a list of each partner who practices or who intends to practice certified public accountancy in the State; (2) for a limited liability company, a list of each member who practices or who intends to practice certified public accountancy in the State; and (3) for a corporate applicant, a list of all of the shareholders of the corporation. #### Section 2-405 (a) If an applicant qualifies for a permit under this subtitle, the Board shall mail or electronically transmit to the applicant a notice that states that: (1) the applicant has qualified for a permit; and (2) on receipt of a permit fee set by the Board, the Board will issue a permit to the applicant. (b) On payment of the permit fee, the Board shall issue a permit to each applicant that meets the requirements of this subtitle. #### Section 2-406 (a) Subject to subsection (b) of this section and while a permit is in effect, it authorizes the holder to: (1) operate a business through which an individual practices certified public accountancy; and (2) represent to the public that the business provides the services of a licensed certified public accountant. (b) A permit authorizes the holder to provide a service that constitutes practicing certified public accountancy only if the service is performed by an individual who is licensed or otherwise authorized under this title to practice. (c) A firm may use the title "CPA" or "CPA firm" without a permit issued under this section if the firm is performing other professional services that do not require a permit if: (1) the firm performs those services through an individual with a practice privilege under Sec. 2-321 of this title; and (2) the firm performs those services in the state where the individual with a practice privilege retains a principal place of business. #### Section 2-407 (a) Unless a permit is renewed for a 2-year term as provided in this section, the permit expires on the first December 31 that comes: (1) after the effective date of the permit; and (2) in an even-numbered year. (b) (1) At least 1 month before a permit expires, the Board shall mail or electronically transmit to the permit holder: (i) a renewal application form; and (ii) a notice that states: (1) the date on which the current permit expires; and (2) the amount of the permit fee. (2) If an electronic transmission under paragraph (1) of this subsection is returned to the Board as undeliverable, the Board shall mail to the permit holder, at the last known address of the permit holder, the materials required under paragraph (1) of this subsection within 10 business days of the date the Board received the notice that the electronic transmission was undeliverable. (c) Before a permit expires, the permit holder periodically may renew it for an additional 2-year term, if the holder: (1) otherwise is entitled to a permit; (2) pays to the Board a permit fee set by the Board; and (3) submits to the Board a renewal application on the form that the Board provides. (d) The Board shall renew the permit of each permit holder who meets the requirements of this section. #### Section 2-408 (a) Within 1 month after the change or occurrence, a partnership that holds a permit shall give to the Board written notice of: (1) a change in the name of the partnership; (2) the admission of any partner who practices or intends to practice certified public accountancy in the State; (3) the death of any partner who practiced certified public accountancy in the State; and (4) the withdrawal of any partner who practiced certified public accountancy in the State. (b) Within 1 month after the change or occurrence, a limited liability company that holds a permit shall give to the Board written notice of: (1) a change in the name of the limited liability company; (2) the admission of any member who practices or intends to practice certified public accountancy in the State; (3) the death of any member who practiced certified public accountancy in the State; and (4) the withdrawal of any member who practiced certified public accountancy in the State. (c) Within 1 month after the change or occurrence, a corporation that holds a permit shall give to the Board written notice of: (1) a change in the name of the corporation; (2) the death of any stockholder; and (3) a change in stockholders. #### Section 2-409 The surviving partner of a partnership that holds a permit may use the partnership name for 1 year after the death of the next to the last partner. #### Section 2-410 (a) Subject to the hearing provisions of Sec. 2-412 of this subtitle, the Board, on the affirmative vote of a majority of its members, may deny a permit to any applicant, reprimand a permit holder, or suspend or revoke a permit: (1) for any applicable ground under Sec. 2-315 of this title; (2) if the applicant or permit holder fraudulently or deceptively obtains or attempts to obtain a permit; (3) if the applicant or permit holder fraudulently or deceptively uses a permit; (4) if the applicant or permit holder fails to meet or continue to meet the qualifications or requirements set forth under Sec. 2-402 or Sec. 2-403 of this subtitle; or (5) if the applicant or permit holder has a partner, member, or corporate officer whose license has been suspended or revoked by the Board. (b) On suspension or revocation of a permit, the holder shall surrender to the Board the permit certificate of the holder. (c) At the end of a suspension period, the Board shall return to the permit holder the permit certificate surrendered under this section. (d) (1) Instead of or in addition to reprimanding the permit holder or suspending or revoking a permit under this subsection, the Board may impose a penalty not exceeding $5,000 for each violation. (2) To determine the amount of the penalty imposed under this subsection, the Board shall consider: (i) the seriousness of the violation; (ii) the harm caused by the violation; (iii) the good faith of the permit holder; and (iv) any history of previous violations by the permit holder. (e) The Board shall pay any penalty collected under this subsection into the General Fund of the State. #### Section 2-411 On its own initiative or on a written complaint made to the Board by any person, the Board may commence proceedings under Sec. 2-410 of this subtitle. #### Section 2-412 (a) Except as otherwise provided in Sec. 10-226 of the State Government Article, before the Board takes any final action under Sec. 2-410 of this subtitle, it shall give the person against whom the action is contemplated an opportunity for a hearing before the Board. (b) The Board shall give notice and hold the hearing in accordance with Title 10, Subtitle 2 of the State Government Article. (c) The Board may administer oaths in connection with any proceeding under this section. (d) (1) The Board may issue a subpoena for the attendance of a witness to testify or the production of evidence in connection with any proceeding under this section. (2) If a person fails to comply with a subpoena issued under this subsection, on petition of the Board, a circuit court may compel compliance with the subpoena. (e) If, after due notice, the person against whom the action is contemplated fails or refuses to appear, nevertheless the Board may hear and determine the matter. #### Section 2-413 (a) (1) For the limited purpose set forth in paragraph (2) of this subsection, a permit shall remain in effect and may not expire by operation of law while the permit holder is under investigation by the Board or awaiting a hearing or disposition on charges subject to disciplinary action under this subtitle. (2) Any extension of a permit term caused under this subsection is effective only for the purpose of retaining the jurisdiction of the Board over the permit holder during the course of disciplinary proceedings and does not prevent the permit from expiring for any other purpose. (b) Unless the Board agrees to accept the surrender, a permit holder may not surrender a permit while the holder is under investigation or awaiting a hearing or disposition on charges subject to disciplinary action under this subtitle. #### Section 2-414 (a) Subject to the provisions of this section, the Board may reinstate: (1) any permit that has been revoked; or (2) before fulfillment of the conditions of the suspension, any permit that has been suspended. (b) A permit may be reinstated under this section only if: (1) the partnership, limited liability company, or corporation whose permit has been revoked or suspended submits a written request to the Board; (2) the Board holds a hearing on the request; (3) the Board, by an affirmative vote of a majority of its members, votes to reinstate the permit; and (4) the partnership, limited liability company, or corporation pays to the Board a reinstatement fee set by the Board. #### Section 2-415 After the Board issues a permit, the permit holder shall continue to comply with the respective requirements of Sec. 2-402 or Sec. 2-403 of this subtitle. #### Section 2-416 In accordance with its regulations, the Board may reinstate the permit of a firm that has failed to renew the permit for any reason if the firm: (1) otherwise is entitled to a permit; and (2) pays to the Board a reinstatement fee set by the Board. --- Md. Code Ann., Bus. Occ. & Prof. (as displayed at mgaleg.maryland.gov, October 16, 2026)