The tax season starts in January, so it’s almost here and more than half of the 300 million Americans will be looking for someone to prepare their tax returns. If you have been thinking of starting a tax preparation business, now is the time to do it. There is a market of about 150 million US citizens, who will be willing to have their taxes prepared for a fee.
Tax business will always be in demand, because the US population continues to swell. There is also no indication that the Tax Code will get simplified or the existing taxes will be reduced. People who are always scared and confused of filing their returns on their own will be asking for your services every tax season. With the introduction of the Affordable Care Act and the complications that come with it, many people that thought they would be able to do their taxes on their own, will be reaching out for help.
Of course, you can’t expect to become successful in your tax business overnight. You will need to work hard before you can get profit; but the important thing is that you start now. Preparing other people’s taxes is a life long job. You may or may not work full time. This means that you may opt to work only during the tax season, which is from January to April or work year long, as businesses are required to file their returns quarterly.
Things That You Need To Start A Tax Business
- First thing first, you need to have yourself educated and trained in tax preparation. You may choose to learn on campus or enroll at an online course with instructor support.
- Get the documents required by the IRS, such as the:
(a) PTIN (Preparer Tax Identification Number) and
(b) EFIN (Electronic Filing Identification Number) – Zip Refund will provide you an EFIN to work under
These ID numbers are issued by the IRS and give you authority to prepare taxes and file them electronically at the agency’s e-services.
- Choose tax preparation software depending on the type of tax returns that you will be working on, from a simple to a basic software package. This should help you prepare taxes in a manner that is both fast and effective.
- You will also need space for an office. People’s personal and business taxes are important documents, so you should have a place to work on those and have a meeting with your clients. A home office is ideal for starting your business; and as you gain more clients, you may want to expand to a real brick and mortar office.
As in any other businesses, it will be challenging to start a tax preparer’s business. The result, however, is very rewarding and offers many advantages. The start up cost is very inexpensive. Acquire a computer, software and some office supplies and you’re ready to go. Your client base will be small, at first, so start offering your services to family and friends and connecting to your locality. These people will become your repeat customers because they will be coming back year after year. Make your tax preparer’s business known to as many people as possible in your state, so you can find and add new customers to your current client base.
Let Zip Refund do the majority of this for you. We offer free software, an EFIN to work under, marketing material, the bank products, and so much more so learn more about qualifying with us today.