Arkansas State Board of Public Accountancy

• Corporations
• Limited Liability Companies
• Partnerships
• Sole Proprietorships

Corporations:

• The principal executive officer of a corporation licensed in Arkansas to practice public accounting shall be a shareholder and a director who is a licensed certified public accountant or public accountant.
• Directors and officers who are not licensees shall not exercise any authority whatsoever over professional matters relating to the practice of public accountancy.
• Any shareholder who ceases to be eligible to be a shareholder shall be required to dispose of all of his or her shares within a reasonable period to a person qualified to be a shareholder or to the corporation.

Sole Proprietorship:

• A certified public accountant or public accountant operating as a sole proprietorship and engaged in Arkansas in the practice of public accounting is considered a firm. 

All Entities:

• Directors, members, partners, and officers who are not licensees shall not exercise any authority whatsoever over professional matters relating to the practice of public accounting.
• The principal executive officer, managing member, or managing partner shall be a shareholder, member, or partner who is a licensed certified public accountant or public accountant, who holds a current, valid license in this or another state or jurisdiction. 
• Persons who are not certified public accountants or registered public accountants shall not hold, in the aggregate, more than a minority interest of such firm’s equity ownership or voting rights; or receive, in the aggregate, more than a minority interest of said entity’s profits or losses.