1. (a) A firm name may not include descriptive words relating to the quality of services offered or that is misleading about the legal form of the firm, or about the persons who are partners, officers, or shareholders of the firm, or about any other matter. However, names of one or more former partners or shareholders may be included in the name of a firm or its successor.

2. (b) A firm name is misleading if:

   1. (1) it is not the lawful and registered name of the firm;
   2. (2) the name contains a misrepresentation of facts;
   3. (3) the name indicates character or grade of service which is not based upon verifiable facts;

   4. (4) the name is likely to mislead or deceive because it fails to make full disclosure of relevant facts; the following are examples, but are not inclusive:

      1. (A) the name indicates a geographic area of service which is not based on verifiable facts; or
      2. (B) the firm name includes a non-owner firm employee or a non-CPA.
   5. (5) the name is intended or likely to create false or unjustified expectations of favorable results;
   6. (6) the name implies special expertise;
   7. (7) the name implies educational or professional attainment or licensing recognition of the firm and/or of its owners, partners, or shareholders which are not supported in fact;
   8. (8) the name of the firm that is incorporated does not include the words "corporation,""incorporated," "professional corporation," or "company," or an abbreviation thereof as a part of the firm name; the words "professional corporation," or "PC" are not included with the firm name each time it is used; and the name of a firm organized under the limited liability partnership rules does not include the words "professional limited liability company" or "professional limited liability partnership" as appropriate, or an abbreviation thereof as part of the firm name unless the entity was organized prior to September 1, 1993;
   9. (9) the name includes the designation "and company," "company," "group," "associates" or "and associates" or abbreviations thereof or similar names implying more than one employed licensee in the firm unless there are at least two licensees involved full time in the practice;
   10. (10) the name of a firm that is a partnership or professional corporation fails to contain the personal name or names of one or more individuals presently or previously a partner, officer, or shareholder thereof; except that an acronym may be used for a firm name if the acronym is composed exclusively of the first letters of the surnames of current or past partners or shareholders of the firm;
   11. (11) the name of a firm that is a sole proprietorship fails to contain the name of the sole proprietor; or
   12. (12) the name contains other representations or implications that in reasonable probability will cause a reasonably prudent person to misunderstand or be deceived.
3. (c) A partner surviving the death or withdrawal of all other partners may continue to practice under a partnership name for up to two years after becoming a sole practitioner.
4. (d) The name of any former partner or former shareholder may not be used in a registered firm name during the period when the former partner or former shareholder has been prohibited from practicing public accountancy or prohibited from using the title "CPA" or "PA."

Source Note:The provisions of this §501.83 adopted to be effective June 11, 2000, 25 TexReg 5340.