Nebraska Passes Law Allowing CPA Firms to be ESOPs
One of the questions I receive on a regular basis is, "what sorts of companies can be ESOP-owned?" That is a very nuanced question, but in terms of industry, the answer is almost any kind. However, on a state by state basis, some professional service firms may only be owned by an owner (or owners) who are also licensed to be a professional in that state. The most common examples are lawyers and doctors (which generally means that neither law firms nor physician practices may be ESOP-owned, in most states). However, CPA firms are often a different story. That is, in many states, CPA firms can be partially owned by an ESOP trust.
This year, the state of Nebraska joined the states that do allow at least a portion of a CPA firm to be owned by an ESOP trust. More details on the new law are discussed in this NCEO blog entry.