The Complete Guide to Starting a Tax Preparation Practice

When tax season rolls around, it’s common for taxpayers to rush to file their taxes. Before the start of tax season, tax preparation businesses begin to open. This is a time to earn money by providing tax preparation services. 

Starting a tax preparation practice makes for a great business opportunity. It’s not too hard to start one, but you must know how to do it right. 

Read this guide to learn what you must do to start a tax preparation practice. 

Get Registered

The first step in this process is to register your business with your state. You have the option of filing a Doing Business As (DBA) name. By taking this route, you don’t have to create a formal business structure for your practice. 

You also have the option to form an LLC or a corporation. You must find out if your business needs a Federal Employer Identification Number. You can inquire with the IRS. 

You must apply to become an authorized e-File Provider with the IRS. Then, you must apply for an EFIN with the IRS.

Don’t forget to apply for the preparer tax identification number with them as well. Anyone who prepares or assists in the preparation of federal tax returns must have this. 

Define Your Tax Preparation Practice

You must determine your tax preparation business model. Will you provide year-round advisory services? Do you plan on working on a seasonal basis only?

You must also determine what types of taxes you’ll focus on. Do you want to focus on business tax, individual tax, or both?

The answers to these questions will help you set the pricing for tax services. Then, you must consider the tax certification options. Prospective clients like to work with certified tax preparers. 

It’s a good idea to take a professional tax preparer certification course. This can help you get the skills you need to be a tax preparation professional. 

Want to learn more about this course? Schedule a time to speak with the professionals at Universal Accounting. They can answer your questions about the course. 

Get the Tools You Need To Streamline Tax Preparation

Next, you must focus on getting the tools you need to offer great services. Determine what professional tax software is right for you. Consider which ones are affordable and effective. 

Make sure you get all the tools you need to streamline your workflow. When tax season comes around, you want to be on top of your game. 

Grow Your Tax Preparation Business

To grow your business, you must market yourself. Use effective marketing tax preparation practices. This includes building a website to list the services you offer. 

It’s a good idea to connect on social media. Develop a brand on social media. This is also a good way to connect with peers in the industry. 

Now Is the Perfect Time To Start Your Tax Preparation Practice

Thinking about starting your own tax preparation practice? Don’t wait any longer. Use this guide to open your own business to help people with their taxes. 

Make sure to explore the rest of our blog to continue reading more great articles.