Practice Privilege
Mobility is a practice privilege that generally permits a licensed CPA in good standing to practice in a state from outside of their principal place of business without obtaining another license, so long as the licensee meets certain state specific conditions.
For state accountancy boards that have adopted the Uniform Accountancy Act § 23 Safe Harbor language for mobility, this will allow those licensees who had practice privileges prior to a specific date to proceed to practice, so long as they have a license in good standing and no other state specific restrictions apply. Currently, Delaware, Texas, and Pennsylvania have adopted the UAA Safe Harbor Language for Mobility.
As of October 1, 2025:
Individual Practice Privilege - An individual whose principal place of business is outside of Maryland is exempt from the licensing requirement under Md. Code Ann., Bus. Occ. & Prof. § 2–301 and shall be considered to have qualifications that are substantially equivalent to a licensee if the individual:
- holds a valid license as a certified public accountant from another state; and
- was required to pass the Uniform CPA Examination to qualify for the license in the other state.
- An individual qualifying for practice privilege in Maryland may exercise all of the privileges of a licensed certified public accountant.
- Notwithstanding any other provision of law, an individual who qualifies for a practice privilege under the Maryland Public Accountancy Act may practice certified public accountancy in Maryland:
- by any means, including mail, telephone, or electronic communication; and
- without any notice, fee, or other submission to the Maryland Board of Public Accountancy.
See Md. Code Ann., Bus. Occ. & Prof. § 2–321
Firm Practice Privilege/Firm Registration Requirements See Md. Code Ann., Bus. Occ. & Prof. § 2–401
Firm Application Requirements Partnership - To qualify for a permit, a partnership shall meet the requirements of this section.
- The partnership shall:
- 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;
- have a permanent office in Maryland from which an individual is licensed to practice certified public accountancy; or have at least a simple majority of the partners, officers, shareholders, members, or managers retain a principal place of business in Maryland;
- hold a valid license issued under Md. Code Ann., Bus. Occ. & Prof. § 2–301; and
- comply with regulations promulgated by the Maryland Board of Public Accountancy.
- An individual who is not licensed to practice certified public accountancy in Maryland or another state may have an ownership interest in the partnership if:
- 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 Maryland or another state;
- the individual is an active participant in the partnership or its affiliated entities;
- the partnership designates, to the Maryland Board of Public Accountancy, a licensee of Maryland, or a qualified licensee of another state who is responsible for the registration of the partnership; and
- the partnership complies with regulations adopted by the Maryland Board of Public Accountancy.
- At least one (1) general partner and any other partner who practices or intends to practice certified public accountancy in Maryland shall be licensed by the Maryland Board of Public Accountancy to practice certified public accountancy in Maryland or qualify for a practice privilege under § 2–321 of the Maryland Public Accountancy Act.
See Md. Code Ann., Bus. Occ. & Prof. § 2–402
Limited Liability Company - To qualify for a permit, a limited liability company shall meet the requirements of this section.
- The limited liability company shall:
- 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;
- have a permanent office in the State from which an individual is licensed to practice certified public accountancy; or have at least a simple majority of the officers, shareholders, members, or managers retain a principal place of business in Maryland;
- hold a valid license issued under Md. Code Ann., Bus. Occ. & Prof. § 2–301; and
- comply with regulations adopted by the Maryland Board of Public Accountancy.
- An individual who is not licensed to practice certified public accountancy in Maryland or another state may have an ownership interest in the limited liability company if:
- 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 Maryland or another state; and
- the individual is an active participant in the limited liability company or affiliated entities.
See Md. Code Ann., Bus. Occ. & Prof. § 2–402.1
Corporation - To qualify for a permit, a corporation shall meet the requirements of this section.
- The corporation shall meet the applicable requirements of the Maryland Professional Service Corporation Act or of the comparable law in another state.
- The corporation shall:
- 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;
- have a permanent office in the State from which an individual is licensed to practice certified public accountancy; or have at least a simple majority of the officers, shareholders, members, or managers retain a principal place of business in Maryland;
- hold a valid license issued under Md. Code Ann., Bus. Occ. & Prof. § 2–301; and
- comply with regulations adopted by the Maryland Board of Public Accountancy.
- An individual who is not licensed to practice certified public accountancy in Maryland or another state may have an ownership interest in the corporation if:
- 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 Maryland or another state;
- the individual is an active participant in the corporation or affiliated entities;
- the corporation submits to the Maryland Board of Public Accountancy the name of a licensee of Maryland, or, if applicable, a licensee of another state with a practice privilege in Maryland who is responsible for the registration of the corporation; and
- the corporation complies with any other requirements that the Maryland Board of Public Accountancy imposes.
See Md. Code Ann., Bus. Occ. & Prof. § 2–403
Consent to Jurisdiction for Individual Mobility - As a condition of the practice privilege, an individual who is licensed by another state and qualifies for a practice privilege under the Maryland Public Accountancy Act and any firm that employs the individual to practice in Maryland shall both consent to:
- the personal and subject matter jurisdiction and disciplinary authority of the Maryland Board of Public Accountancy;
- complying with State public accountancy laws and regulations adopted by the Maryland Board of Public Accountancy;
- the appointment of the State Board of Public Accountancy that issued the individual’s license to practice certified public accountancy as the agent upon which process may be served in any action or proceeding by the Maryland Board of Public Accountancy against the individual; and
- ceasing to offer or provide services in the State that are subject to this title if the license issued by the state in which the individual’s principal place of business is located is no longer valid.
See Md. Code Ann., Bus. Occ. & Prof. § 2–321
Consent to Jurisdiction for Firm Mobility N/A
Peer Review Requirement - A licensee or permit holder who performs any of the services described in Md. Code Ann., Bus. Occ. & Prof. § 2-4A-04 (listed below) of the Maryland Public Accountancy Act shall be required to undergo, at least once every three (3) years, a peer review.
- The Maryland Board of Public Accountancy may modify the peer review requirement for a licensee or permit holder upon a showing of good cause.
- A peer review shall be performed and recorded in accordance with standards no less stringent than those set forth in the standards for performing and reporting on peer reviews of the American Institute of Certified Public Accountants (AICPA).
- The Maryland Board of Public Accountancy must approve a peer review program other than the peer review program of the AICPA prior to its use to satisfy the requirements of this section.
- A licensee or permit holder shall affirm under the penalties of perjury on a standard form provided by the Maryland Board of Public Accountancy compliance with the peer review requirement at the time of license or permit renewal.
See Md. Code Ann., Bus. Occ. & Prof. § 2–4A–02. - A system review is required for a licensee or permit holder that performs any of the following services:
- engagements governed by the Statements on Auditing Standards (SAS) of the AICPA; or
- engagements governed by the government auditing standards issued by the U.S. Government Accountability Office;
- examinations of prospective financial information under:
- the Statements on Standards for Attestation Engagements (SSAE) of the AICPA; or
- the government auditing standards issued by the U.S. Government Accountability Office; or
- Audits of issuers not registered with the U.S. Securities and Exchange Commission that are performed under standards of the Public Company Accounting Oversight Board (PCAOB).
- An engagement review is required for a licensee or permit holder not required to have a system review that performs any of the following services:
- review of historical financial statements in accordance with the Statements on Standards for Accounting and Review Services (SSARS) of the AICPA;
- compilation of historical financial statements with disclosures performed under the SSARS of the AICPA;
- compilation of historical financial statements that omit substantially all disclosures performed under the SSARS of the AICPA; or
- engagements performed under the SSAE of the AICPA other than the examination of prospective financial statements.
Additional Requirements - An individual authorized to practice certified public accountancy under the Maryland Public Accountancy Act and under the practice privilege may represent to the public, by use of a title, including “licensed certified public accountant”, “certified public accountant”, “public accountant”, or “auditor”, by use of the abbreviation “CPA”, by description of services, methods, or procedures, or otherwise, that the individual is authorized to practice certified public accountancy in Maryland.
See Md. Code Ann., Bus. Occ. & Prof. § 2–321
Restrictions See Md. Code Ann., Bus. Occ. & Prof. § 2–321
Relevant Definitions - “Attest” means to provide the following services:
- an audit or other engagement performed in accordance with the SAS issued by the AICPA;
- a review of a financial statement performed in accordance with the SSARS issued by the AICPA;
- a compilation;
- any examination, review, or agreed–upon procedures engagement to be performed in accordance with the SSAE issued by the AICPA; and
- any engagement performed in accordance with the Auditing Standards of the PCAOB.
- “Compilation” means a presentation of information in the form of a financial statement that is performed in accordance with the SSARS issued by the AICPA.
- "Financial statements" means statements and related footnotes that purport to show actual or anticipated financial position which relates to a point in time or results of operations, cash flow, or changes in financial position which relate to a period of time, on the basis of generally accepted accounting principles or another comprehensive basis of accounting. The term includes specific elements, accounts, or items of the financial statements, but does not include incidental financial data included in management advisory services reports to support recommendations to a client, nor does it include tax returns and supporting schedules.
- “Practice certified public accountancy” means to perform any of the following accountancy services:
- conducting an audit, review, or compilation of financial statements;
- conducting any examination, review, or agreed–upon procedures engagement to be performed in accordance with the SSAE issued by AICPA; or
- providing a written certificate or opinion offering positive or negative assurance or full or limited assurance on the correctness of the information or on the fairness of the presentation of the information in:
- a financial statement;
- a report;
- a schedule; or
- an exhibit.
- “Practice privilege” means the right granted to an individual who is licensed by another state to practice certified public accountancy in Maryland without a license issued in Maryland.
- “Principal place of business” means the office location designated by the licensee for purposes of substantial equivalency and reciprocity.
See Md. Code Ann., Bus. Occ. & Prof. § 2–101 See Maryland Board of Accountancy Regulations COMAR 09.24.01.01
Statute and/or Regulation References Md. Code Ann., Bus. Occ. & Prof. §§ 2–101, 2–321, 2–402, 2–402.1, 2–403, 2–4A–02 Maryland Board of Accountancy Regulations COMAR 09.24.01.01
Disclaimer: The information contained in NASBA’s Accountancy Licensing Library and CPAmobility.org is for informational purposes only and should not be construed as legal advice or legal opinion. The information is based on current state board of accountancy law and rules which are publicly available. Because board law and rules are continuously changing, there may be a slight delay in law or rule effective dates and the information reflected in these websites. NASBA cannot guarantee a mobility outcome based solely on the information contained in these websites, as additional state factors not listed here may be applicable. It is the responsibility of each CPA licensee or permit holder to be knowledgeable of each state board's current laws and rules in the state(s) in which the licensee intends to practice via mobility.
Click Reciprocal Licensure and/or Firm Registration in the menu bar at the top of this page for additional information or if these practice privilege requirements do not apply to you or your firm. |
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