How to Start a Tax Preparation Business

Looking for Capital to Start Your Business?

Are you wondering how to obtain small business financing so that you can turn your dream business into a reality? Would you like to know the best ways to obtain small business loans? Or maybe you want to know more about angel investors or venture capitalists. We highly encourage you to read our review of three solid resources that can help you with your new business financing in our article, Small Business Financing: How to Obtain the Capital You Need to Start Your Business.

How to Start a Tax Preparation Business Business Overview:

If you’re looking for an opportunity to generate a great income working part or full time, consider learning how to start a tax preparation business. With an income tax preparation business you prepare and file income tax returns for individuals and possibly small business owners. Preparing income tax returns can be a time consuming and confusing process for most people, which is why many individuals prefer to have experts prepare their tax returns for them. By providing a fast and accurate tax preparation service you’ll be saving many people a lot of stress and hassle, allowing them to focus on other important areas of their lives. In order to run this business you’ll need to be trained in taxes and accounting. If you aren’t currently qualified in theses areas there are many courses that you can take to acquire the necessary skills in a relatively short period of time. Alternatively you could hire people to do the tax returns for you, and focus exclusively on marketing your company. With a tax preparation business there’s real potential to generate excellent profits. Many tax preparation businesses charge based on the number of pages that they have to fill out. Typically $15 USD is charged per page, so if you were to serve 20 clients each week (4 a day) at an average of $90 USD (6 pages) per return you would generate $1,800 USD per week. Most likely you will generate the largest proportion of your profits during the tax season (January to April if you live in the USA), although this can be supplemented by preparing quarterly returns for self-employed individuals and small businesses. As we’ve seen, starting a tax preparation business can clearly generate a lucrative full time income, but you could also run this business part time. Another attractive feature to this business idea is that you can easily run a tax preparation business from home, be it on a full time or a part time basis. In order to make your tax preparation service a lucrative success, you’ll need to ensure you provide a fast and accurate service. Your clients will value you highly for preparing their tax returns quickly and accurately—and by doing so you’ll earn repeat customers. As a result you’ll increase your profits further down the line because you won’t need to invest as much in marketing and advertising to win customers. With this in mind, you may also choose to invest in tax return software. While you can complete your tax returns by hand, using tax return software will increase your accuracy and efficiency while giving your service a more professional image and further enhancing customer satisfaction.

A Day in the Life of a Tax Preparation Business Owner:

This article brought to you by Business Ideas! If you enjoyed this article, make sure to subscribe to the Business Ideas Newsletter to get ideas sent straight to your email inbox.As a tax preparation business owner your primary focus will always be to quickly and accurately prepare and file your clients’ income tax returns. Therefore, the first thing you will do on a typical day will be to review the tax returns you have to complete for your clients, and to get straight on with preparing and filing them—with the goal of completing them the same day. Alternatively, you may have chosen to hire people to complete the tax returns for you. In this case a typical day will be spent focusing on identifying new opportunities to market and grow your business.

About Your Customers:

Your customers will be individuals looking for help with their tax returns and possibly small business owners as well.

What You Need to Start:

  • Tax preparation qualifications (or you could hire people who are experts in taxes and accounting to work for you)
  • Tax return software (recommended, but not essential)
  • Advertising (i.e., website, phone book, flyers, brochures, newspaper advertisements, networking, etc.)
  • Computer and printer
  • Business license
  • Business insurance
  • Tax preparation business plan
  • Financial tracking software

The Good:

  • It can be very lucrative—20 clients a week can generate $1,800 USD per week.
  • You can run this business from the comfort of your own home.
  • You could choose to run this business part time.
  • You can train relatively quickly if you’re not an expert on taxes and accounting.
  • You could hire people to do the tax returns for you.

The Bad:

  • Preparing and filing tax returns can become repetitive.
  • A large proportion of your profits will be made during tax season (January to April in the USA), so your business may dip during non tax season (though this can be supplemented by preparing quarterly returns for self-employed individuals and small businesses).


The Marketing Program is a step-by-step, walk-you-by-
the-hand bootcamp.

Each month, we give you ONE (and no more than one) "marketing project" to complete in your business.

You do that one project each month . . . and we guarantee that if you do the stuff, you'll double your online income during the next 12 months, or we'll double your money back.

Anyway, each monthly marketing project is a plain -as-day, from A-Z, step-by-step, no B.S. blueprint (that has been tested and proven to work over and over again) for getting multiple on-demand cash infusions into your business.

Technorati Tags: , ,

CONSUMER NOTICE: This is an affiliate ad supported website. That means if you buy something from a link, or ad on this website,
or based on our recommendation, either expressed or implied, we may get paid an affiliate commission. That's how we pay the bills.
Affiliate Agreement | Anti-Spam Policy | DMCA Notice | External Links Policy | Earnings Disclaimer | Privacy Policy | Terms and Conditions | Compensation Disclosure | Refund Policy | Video and Audio Terms

Copyright © 2010 - 2012 Business Ideas and Avenue 81, Inc. Contact Information: Avenue 81, Inc., 2885 Sanford Ave SW #13607 Grandville, MI 49418 USA Phone: (888) 329-4905 Email: