How do i start a tax preparation business?

Question

I need more details as to what is entailed, start up costs and marketing.

Answer 1

If you don't already have experience I would strongly suggest that you go work for one of the national franchises for a couple of years. Just jumping is will be a major injustice to your clients. H & R Block has a national policy against doing work on the side but everybody violates that as a means of starting to build a client base (I don't work for them by the way). Others allow you to do outside tax work but will take a very dim view if you take any of their clients. All of the national franchises conduct a "Tax School", which is the best place to start. The $139 to $359 depending on the franchise .

You can use Turbo Tax or the H&R Block's Tax Cut to do as many returns as you like if you don't mind that it violates the license you have to use that product. That does leave you with doing all of your returns on paper but it gets you started for about $70 for software. If you choose ProSeries or Lacerte (the two most popular) and wish to e-file, you will need a EFIN from the IRS which requires you to file a form 8633 at least 6 weeks before the tax season. You can get the form 8633 on line at irs.gov and fill it out on your computer. You will need to call the IRS (1-866-255-0654) and get a finger print card to send along with your form 8633.
Which is the better software depends on your needs and ability.
ProSeries is "interview" based meaning that the program asks question and puts your answers in the correct place. You still can use a "forms mode" or switch back and forth. It does some but not much in the way of customer management if you need that.
Lacerte is "forms" based which in most cases requires that you know what to put in which block. It is therefore faster if you know where to put things and how to do calculations. It does a very complete job of customer management.
Both of these have packages that allow you to pay for e-files as you go and do as little or as many different types of filling as you need. You can start those packages at around $400 and go up into the thousands.

And last but not least the IRS web site and the call centers are your best friend so use them. They offer a great deal of free stuff like forms and publications that are invaluable. (I don't work there either).

If you live and plan on working in California or Oregon you will need to be Certified by the state unless you are working for an EA, CPA or an attorney. Again don't try this business without some experience and guidance.

Answer 2

Starting A Tax Preparation Business

Answer 3

First you need to be trained to do the job, H&R Block and other large companies have training programs.
Second you need to provide the state you live in with all the paperwork for a new business whether that be a LLC, or a Incorporated business and get all your permits.
Third you need a IRS number to use on all tax papers that you prepare.
Fourth You need space to work where you can have your clients come to get the work done.
Fifth You need to get clients who want you to do their books all year long for constant work and of course pay.
Sixth: Good Luck its harder than it looks!!!!!!!

Answer 4

"March Madness" is only about filing your income tax; why don't America know this?

Answer 5

how do you stop asking how to start different business?

Answer 6

If you're asking for help. I don't think you're ready to start a bussiness.