Starting a tax preparation business is a great opportunity for those looking to take their career to the next level.
Tax preparation is a great home-based business for all types of people and having your own business provides you with several benefits.
Why Start a Tax Business
Like starting any other business, it can be challenging to become a tax preparer, but it’s very rewarding and provides an array of advantages:
1. Business will always be in demand
The tax industry is a guaranteed and steady industry to work in since people will always need to file taxes. As the number of tax payers continues to grow, so will their need for a qualified tax professional. As a tax professional you can prepare federal income tax returns for individuals in the community as well as long-distance customers.
2. Expect competitive yearly income
While the busiest time of year for a tax preparer is indeed during tax season, which runs from January 1 to mid-April, they also work diligently year-round, contrary to prior belief. Since businesses have to file their taxes on a quarterly basis, your job extends past the January-April tax season. Therefore, you can work full-time year-round and handle taxes on a daily basis for businesses.
With a year-round job you can expect a healthy paycheck. And while your income will heavily depend on you client base, which will more than likely start small, you can increase your client base by making your business known and connecting with the local community.
3. You can create your own hours
One of the greatest advantages of having a tax business is that you can pick your hours and create your own schedule. This is especially beneficial if you have a family or want to further your education, both of which require large amounts of time and energy.
What You Need to Start a Tax Business
Now that you know of the rewards of having a tax business, the next step is determining what resources and tools you need to get started.
- Get an education in tax preparation: There are various tax preparation services available to educate and train you on how to become a tax professional. At America’s Tax Office, we provide one-on-one tax training and training tools including videos and practice returns.
- Apply for a Preparer Tax Identification Number (PTIN): This is a requirement for tax preparers. It is a number the IRS issues to tax preparers to conceal their Social Security number and electronic filing privileges with the IRS.
- Electronic Filing Identification Number (EFIN): This is also assigned by the IRS and admits you into IRS e-services and authorizes you to electronically file tax returns.
- Obtain Tax Preparation Software: You will need this software to help you with tax work. America’s Tax Office provides preparation software which is easy to use, accessible from anywhere and allows you to prepare returns from a smart phone or tablet. If you ever need help, our tax professionals are just a phone call away!
- Find office space: Every business starts off small so it’s not unusual to start working from your home with a home office. Tools you will need include a fax machine, a business phone, a computer and some accounting software. Over time as you gain more client and acclaim, you can begin to expand your office.
With the fall season approaching, what better time to start a tax business than now? Contact America’s Tax Office today to learn more!