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Pennsylvania Bookkeeping Business - Regular or Professional LLC?

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Junior Member

I'm starting a bookkeeping and payroll processing service. I (and eventually a staff) will do standard bookkeeping for companies, prepare their payroll, prepare (nonattest) financial statements for clients, and provide some input on the analyzation of data.

In Pennsylvania, as I understand it, a professional LLC must be formed if the work performed is required to have a license (doctor, lawyer, etc.). Nothing my business would do would require a CPA license, but I am a CPA and I would obviously like to mention that on advertising materials.

My question is twofold. First, would I be required to form as a professional LLC, and second, if down the road I decide I want to perform compilations for clients and would then need to form a professional LLC, is it possible to convert from regular to professional?

Thanks for your help!


Senior Member
Because you are a CPA doing "accountancy activities", I believe you need to be a professional LLC.

The definition of the activities (emphasis mine):
Sec. 8.05. Accountancy activities.
(a) Accountancy activities are services performed by a CPA, including:
(1) signing, affixing, or associating the names used

by a person or CPA firm to any report expressing an assurance on a financial statement or disclaiming an opinion on a financial statement based on an audit or examination of that statement or to express assurance on a financial statement;
(2) other attestation engagements not otherwise

defined in paragraph (1); or
(3) offering to perform or performing one or more

types of the following services involving the use of professional skills or competencies: accounting, management, financial or consulting services, compilations, internal audit, preparation of tax returns, furnishing advice on tax matters, bookkeeping, or representations of taxpayers; this includes the teaching of any of these areas at the college or university level.
(b) If offering or performing accountancy activities using the CPA title set forth in paragraphs (1), (2), and (3) of subsection (a) of this Section, then:
(1) the activities identified in paragraph (1) of

subsection (a) may only be performed by licensed CPAs;
(2) the activities identified in paragraph (2) of

subsection (a) may only be performed by licensed or registered CPAs; and
(3) the activities identified in paragraph (3) of

subsection (a) are not restricted to licensed or registered CPAs, subject to the provisions of Section 9 of this Act.
(Source: P.A. 98-254, eff. 8-9-13; 98-730, eff. 1-1-15.)

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