How Do I Start a Tax Business?

C. Daw
C. Daw
Starting a tax business begins with deciding the type of taxes that will be prepared.
Starting a tax business begins with deciding the type of taxes that will be prepared.

Being able to start a tax business is similar to starting any other type of business because it begins with a lot of research and preparation. The first steps in any journey towards owning a business is to be prepared. In this case, tax preparation courses should be taken, and a background in accounting would be helpful, but in most areas is not required. The next step is to decide what types of clients and taxes will be prepared. Deciding where to locate the business is another step in preparing to establish it. Finally, once the location and education is completed, the local insurance and licenses will have to be obtained, and then the business can be opened. The final stage of attempting to start a tax business is advertising so the clients will build the clientele up to a level that will allow the company to turn a profit.

Education is always the first step in starting a business, and contemplating to start a tax business is no exception. Accounting classes would be extremely helpful, but in the least some tax preparation classes should be completed. There are numerous tax preparation companies that offer these types of classes, such as local colleges and adult education centers. Numerous online companies also offer tax preparation classes, so no matter where the classes are taken, it is a mandatory step that has to be completed before even beginning the start-up phase of the tax business.

Next comes deciding which types of clients will be handled, as well as the types of taxes that will be prepared. To start a tax business, the decision must be made to simply handle private tax returns, which limits the profits earned to a few months out of the year, or business taxes which offer income throughout the year. The type of clients that will be secured will be the deciding factor on how busy the company will be during the year. No matter which route is taken, the end of the year, and the beginning of the next year, will always be the busiest times.

Before opening the business, insurance and licensing must be obtained. Almost any local company can offer insurance amounts that are required in the area, and any business licensing needs can be handled through the local government agencies that handle them. Every area will have different requirements, so local rules and regulations will have to be understood, and the proper fees and insurance coverage obtained, before opening the doors when attempting to start a tax business.

The final stage in starting a tax business is to open the doors and secure clients. Advertising is the best way to gain customers, which is what the business will rely on to make a profit. They can be made in local newspapers and fliers, through television commercials, on billboards, and through personal signs placed on vehicles and in yards. Business cards are also imperative in order to gain customers, which can be randomly handed out or simply placed on bulletin boards throughout the area.

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    • Starting a tax business begins with deciding the type of taxes that will be prepared.
      By: pkstock
      Starting a tax business begins with deciding the type of taxes that will be prepared.