Information for RAP and RAP Firms

Initial License (RAPs/RAP Firms)

Initial License – RAP

To apply to be a Registered Accounting Professional (RAP), applicants must meet the Education, Examination, and Experience requirements defined in Minnesota Rules 1105.6600-6900.

• Education – see Minnesota Rules 1105.6700
• Examination – see Minnesota Rules 1105.6800
• Experience – see Minnesota Rules 1105.6900

Applying for Registration

After the above requirements have been met, apply to the Board for registration using the Application for MN Registration as an Accounting Practitioner (RAP).

Initial License – RAP Firms

Does a Firm Need a RAP Firm Permit in Minnesota?

A RAP firm can take the form of a sole proprietorship, a corporation, a partnership, or other organizational forms. In general, firms that need a permit to practice in Minnesota include any firm with an office in Minnesota that:

1. performs compilation services (and is not a CPA firm); or
2. that uses the title "RAP" or "RAP Firm."

Any firm that does not have an office in this state but performs compilation services for a client having its headquarters in this state also needs a permit. Refer to Minnesota Rules 1105.7100 and 1105.7300 for specifics.

What About a Business Permit?

Business registration is handled by the Secretary of State's office.

How Do I Get an RAP Firm Permit?

Provide all requested information on the Application for MN RAP Firm or RAP Sole Proprietor Permit and submit it along with any required documentation and appropriate fee(s). Incomplete applications expire six (6) months from receipt by the Board. Details can be found in Minnesota Rules 1105.7100 and 1105.7300.

These applications are reviewed at Board meetings and must be received in the Board office no later than 10 days prior to the next regularly scheduled Board meeting.

For non-RAP Owners of a Minnesota Firm

Please note that EACH non-RAP owner of a Minnesota firm must complete page 5 of the application and include an additional $45.00 fee, which may be added to the $100 firm permit fee check or money order made payable to MN Board of Accountancy; there is no need for separate payment.

All firm permits expire on December 31, regardless of the date issued.

RAP Firm Names

RAP Firm Naming Requirements

A firm must not use any name identifying itself as a RAP firm until the name has been registered with and approved by the Board. To protect the public, the Board requires that RAP firm names not be misleading or fictitious. See Minnesota Rules 1105.7450.

RAP Firm Name Changes

To request a name change, complete the appropriate RAP Firm/SP Firm Name Change Request Form.

Name change requests are reviewed at the next regularly scheduled Board meeting. NOTE: RAP firms cannot use a name that has not been approved by the Board.

Peer Review

Peer Review Requirements for RAP Firms

RAP firms are subject to the same peer review requirements as CPA firms. See Minnesota Rules 1105.7400 and the information below.

Basic Information for Initial Firm Applicants

All firms that apply for a Minnesota permit and who have in the current year or expect in the coming year to perform audits, reviews, or compilations of financial statements, or examinations of prospective financial information, must submit a copy of any peer review completed within the last year with the initial application. See the appropriate application form available in the Document Library for more information.

For a new firm that has not yet undergone peer review, the peer review is due to the Board 21 months from the report date of the initial attest or compilation engagement. The firm's next peer review will be due to the Board three (3) years from that initial report date.

The peer review period for a firm (beginning and ending months) cannot be changed without prior approval from the Board. For firms that have not yet performed services that require peer review, the beginning month of their first peer review period will be established by the reviewer.

Basic Information for Firms Already Holding a Minnesota Permit

Firms who perform attest or compilation services must undergo and submit to the Board the results of a peer review once every three (3) years. Information on how and what to report to the Board can be found in Minnesota Rules 1105.5400.

Firms that do not perform attest or compilation services and do not foresee performing such services in the coming year may claim exemption from peer review at the time of renewal. If they subsequently perform those services, they must immediately notify the Board in writing and submit to the Board a peer review 21 months from the report date of the initial attest or compilation engagement—or sooner, at the request of the firm.

Detailed Information

The above is generalized information on peer review requirements. Please consult Minnesota Rules 1105.4300 and 1105.4600 - 1105.5500 for specifics on all definitions, requirements, conditions, and exceptions.

Status Changes

Changes to a RAP Firm’s address, status or ownership

Keep Your RAP Firm's Information Current With the Board

Making sure the Board has the firm's current mailing and email addresses is an obligation of the firm's licensure. See Minnesota Rules 1105.1100. Submit firm address changes by using the RAP Firm/SP Firm Name Change Request Form.

The firm address is just one of several key pieces of information that needs to be kept updated. Minnesota Rules 1105.7200 lays out the rest:

1. formation of a new RAP firm;
2. addition of a partner, member, manager, director, or shareholder;
3. retirement, withdrawal, or death of a partner, member, manager, director, or shareholder;
4. any change in the name of the RAP firm;
5. termination of the RAP firm;
6. change in the management of any branch office in this state;
7. establishment of a new branch office or the closing or change of address of a branch office in this state; and
8. the occurrence of any event or events that would cause the RAP firm not to be in conformity with the provisions of this chapter.

For Firms That Are Sold, Merged, or Dissolved

If the firm is sold, merged or dissolved, notify the Board by email or mail within 30 days after the event. The Board will mark the firm as dissolved or no longer requiring permit renewal.

For Changes in Ownership

The Board must be notified of firm ownership changes that may result from such mergers and acquisitions (see Minnesota Rules 1105.7200). A merger resulting in a new business type requires an application to the Board for a new permit.

Name changes also require approval from the Board. They must comply with Board firm naming requirements and the name change request must include business registration (Amended Articles of Incorporation or Certificates of Authority, etc.) from the Office of the Secretary of State in that name. An acquiring firm cannot practice under the name of a former firm if they are not duly registered with the Board as the owners and permit holders of the firm, and the permit is not active and in good standing. See the Firm Names tab for additional information.

Renewal

Renewing a RAP Registration

The registration of a registered accounting practitioner (RAP) must be renewed annually and follows the same renewal window and deadlines as for CPAs. RAPs must use the printable PDF Individual RAP Registration Late Renewal Form available through the Document Library to renew; renewal is not available through Online Services.

RAPs must complete no less than 90 hours of CPE during the three-year period preceding renewal (the "rolling 3-year reporting period") with a minimum of 20 hours each year. The CPE must comply with the standards in Minnesota Rules 1105.3100, with the exception of the hour limitation in subpart 4. At least four hours of the 90 hours must be in regulatory ethics or behavioral ethics.

Late Renewals

For RAPs that do not renew by the December 31 deadline, please use the Individual RAP Registration Late Renewal Form available through the Document Library. Please note the renewal fee of $150 includes a $50 delinquency fee. Additional CPE noncompliance fees for RAPs who do not earn or report CPE on time will apply.

Renewing an RAP Firm's Permit

Firm permits expire without exception on December 31 each year. The permit renewal window opens in October. RAP firms will receive a letter and copy of the current owners list from the Board prior to the opening of the renewal window. The owners list (with any changes noted on the list) must be returned to the Board with the renewal form.

RAP firms must submit the printable PDF RAP Firm and Sole Proprietor Permit Renewal Form available through the Document Library.

NOTES:

• No RAP firm can renew a permit until all partners, members, managers, shareholders, directors, and officers who hold a registration – and whose principal place of business is in this state – renew their registration. See Minnesota Rules 1105.7100 and 1105.7300-1105.7400 for details.
• If an RAP firm permit expired more than two (2) years ago, the firm will need to reapply for an initial RAP firm permit. See the Initial License tab for more information.

Late Renewals

For RAP firms that do not renew by the December 31 deadline, please use the RAP Firm Registration Late Renewal Form available through the Document Library.