Do CPA Licenses Transfer From State to State?

A Certified Public Accountant (CPA) license signifies expertise and adherence to high ethical standards. Issued by individual state boards of accountancy, a CPA license is inherently state-specific. This state-centric regulation means practicing across different jurisdictions is not a simple “transfer” of a license. Instead, it involves navigating specific regulations to ensure all practicing CPAs meet rigorous professional standards, regardless of where their initial license was granted.

CPA Mobility and Practice Privileges

CPA mobility, or practice privilege, allows a CPA licensed in one state to provide services in another without obtaining a new license there. This framework is largely facilitated by the Uniform Accountancy Act (UAA), a model law developed jointly by the American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA). The UAA aims to standardize regulations across jurisdictions, promoting consistency and public protection.

A core principle enabling mobility is “substantial equivalency.” This means a state’s licensing requirements are comparable to, or exceed, the UAA’s standards for education, examination, and experience. Individual CPAs typically meet the “Three Es”: 150 semester hours of college education (including a bachelor’s degree), passing the Uniform CPA Examination, and completing one to two years of qualifying experience supervised by a licensed CPA. If a CPA’s home state is substantially equivalent, or the individual CPA meets these criteria, they can generally practice in other substantially equivalent states without prior notice or additional fees.

Most states have adopted these mobility provisions, allowing CPAs to seamlessly serve clients across state lines, whether in-person or virtually. While the privilege to practice is extended, the CPA remains subject to the disciplinary authority of both their home state board and the board of the state where they are practicing. This ensures regulatory oversight and public protection.

Requirements for Obtaining an Additional State License

While CPA mobility allows for practice privileges, some CPAs may choose or need to obtain a full CPA license in another state. This process, often called licensure by endorsement or reciprocity, is distinct from mobility. It involves meeting the specific requirements of the new state’s board of accountancy, which vary but commonly align with the “Three Es” of education, examination, and experience.

To qualify for an additional license, a CPA must demonstrate they have met the education requirement, typically 150 semester hours of college coursework with specific credits in accounting and business. Official transcripts from all attended institutions are usually required. Evidence of successfully passing all sections of the Uniform CPA Examination is a universal requirement, often necessitating the transfer of exam scores directly from NASBA to the new state board.

The experience requirement demands proof of qualifying work experience, usually one to two years, verified by a licensed CPA. This experience must meet specific criteria regarding the type of work performed, such as attest services or tax preparation, and the hours accumulated. Many states also require applicants to pass a state-specific ethics examination covering professional conduct rules unique to that jurisdiction. Being in good standing with their current licensing board is a prerequisite, confirmed via a certificate of good standing from the home state board.

Applicants should gather official transcripts, Uniform CPA Examination score transfers, detailed experience verification forms completed by a supervising CPA, and proof of good standing. Consulting the specific state board of accountancy’s website is necessary to ascertain precise details and obtain the correct forms.

Applying for an Additional State License

After gathering all necessary information, applicants can submit a comprehensive application to the desired state’s board of accountancy. Most state boards provide online application forms, which applicants typically complete electronically or print.

The application form requires submission of supporting documentation, such as official transcripts, experience verification forms, and Uniform CPA Examination score reports. Evidence of passing any required state-specific ethics examination must also be included. An application fee, ranging from approximately $100 to $500 depending on the state, is typically required at submission.

Applications are commonly submitted through an online portal or by mail. After submission, state boards process the application, which can involve a review period of several weeks to several months. During this time, the board may request additional information or clarification. Upon approval, the new state license is issued, allowing the CPA to practice fully within that jurisdiction.

Maintaining Multi-State Practice

Maintaining a Certified Public Accountant license, especially when practicing across multiple jurisdictions, involves ongoing responsibilities. All licensed CPAs must meet Continuing Professional Education (CPE) requirements. While a CPA under mobility generally adheres to their home state’s CPE rules, those holding multiple state licenses must comply with each licensing board’s specific requirements.

CPE requirements vary by state, typically mandating a minimum number of hours over a one- or two-year reporting period, often 20 to 40 hours annually. These hours usually include specific subject areas like ethics, accounting, and taxation. Some states may have unique ethics requirements or specialized CPE topics differing from a CPA’s home state, requiring careful attention to avoid non-compliance.

Beyond individual CPA licensure, accounting firms providing services in multiple states may also have registration requirements in each state where they operate. These firm-level registrations ensure the entity is authorized to practice public accountancy in those jurisdictions. Adhering to these varied CPE and firm registration obligations is necessary for sustained multi-state practice and maintaining good standing.