Do Accountants Need an MBA to Be a Partnership?
Partnerships are a legally recognized business format, while an MBA, or Master's in Business Administration, is a graduate degree. The business format you choose has nothing to do with your education level, beyond your qualifications as an accountant in general.
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Basic Requirements
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To file paperwork with the Securities and Exchange Commission, you must be a registered CPA, but this requires passing an exam rather than a specific degree, and is necessary for any practicing accountant who needs to file SEC paperwork --- regardless of business format. CPA exams are regulated by the individual states, and most states do require some form of college degree as an exam prerequisite. However, some states allow you to substitute experience for a degree, and others only require the minimum associate's degree in accounting.
Business Formats
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The partnership is a general business format, but there are several types of partnerships available, including general partnerships, limited partnerships and joint ventures. Exact requirements for forming a business partnership vary by state, so contact your state's Department of Licensing or Secretary of State for details. You may be required to submit articles of incorporation or announce your intent to form a partnership in a public forum, but an MBA degree is not part of these requirements.
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Reasons for an MBA
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An MBA education gives you a solid foundation for managing a business. When forming a partnership, you may find it useful to include a partner who has an MBA to ensure your business stays on track, files the appropriate state and federal paperwork, and manages the business in general, to allow the other partners to focus on accounting work for clients. However, this is a personal decision among you and your partners, not a legal requirement. If any or all of your potential partners have experience or education that enables your accounting partnership to succeed, the MBA is unnecessary.
Considerations
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Aside from the continuing education in business management an MBA can provide your accounting partnership, adding an MBA or other accounting-related advanced degree or certification can inspire confidence in your clients, or attract new ones. As a business partner rather than an employee, the additional degree has little effect on your salary, however. You will most likely set your salary based on your business needs and profits rather than any type of hiring incentive, such as higher pay for advanced degrees.
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References
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