What happens if you are an accountant without a license?

Many Accountants are unaware of the serious consequences that can result from helping their clients incorporate a business. In California, filling out legal forms without a lawyer is considered unauthorized practice of law. Practicing law without a license can result in large fines and even jail time.

Can a person file a lawsuit against an accountant?

Accountants are not immune from such an attack. Lawsuits against accountants could be for anything. The accountant’s action could be just the simple mistake of offering an add-on service outside their area of expertise.

Is it illegal to be an accountant in California?

The analysis starts with the prohibition set out in the California Business & Professions Code §6125 which states, “No person shall practice law in California unless the person is an active member of the State Bar.” Well, what is the worst that can happen if an accountant, not an active member of the bar, practices law in California?

Is there an attorney client relationship with an accountant?

An attorney-client relationship exists. An accountant is retained by the attorney. The accountant renders services that abet the provision of legal services. The parties do not waive the privilege.

When does the attorney client privilege apply to an accountant?

Judge Friendly wrote that just as other parties have been recognized as necessary to providing legal servicessecretaries, clerks and messengersso should accountants. Consequently, when an attorney retains an accountant to provide services that enhance the legal advice being provided, the attorney-client privilege extends to the accountant.