How to Start Your Own Tax Preparation Business at Home
Becoming a tax preparer is easier than you might think. You really just need to become well versed on the basics of taxes, forms, IRS rules and regulations and filing requirements. From there it is an advertising mission. Here are the steps that you should take toward establishing your own tax preparation business at home.
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Instructions
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Take a tax preparation course with one of the well-known tax preparation firms. Jackson Hewitt has a great tax preparation school that teaches you the basics and the more difficult points of doing taxes for individuals and businesses. The classes are usually free, and you are only required to purchase books and software.
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When you finish your tax preparation course and get your certification, buy tax preparation software that's made for professionals, such as TaxAct or Intuit, and install it on your computer.
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Think of a professional business name for your new tax preparation business; feel free to use your own name as your business name as well. Your state may require that you receive a license in order to operate a tax business in your state.
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Get a Preparer Tax ID Number (PTIN) from the IRS. This is the ID that you will use on forms when filing taxes for your customers.
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Get a 800 number to help you handle calls from potential customers and to make you look like a professional tax business.
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Start off your advertising efforts by tapping your friends and family. Tell them that you have passed a course to do tax preparation and charge them a deeply discounted rate. Tax preparation is a business that heavily relies on word of mouth and referrals; if you do a good job on your family and friends' taxes, they will help spread the word about your tax preparation business.
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Solicit customers for your tax services by posting an ad for your services on Craigslist, AngiesList and in your local newspaper. Design and post flyers about your tax preparation business at your local shopping centers and supermarkets. Place radio advertisements during tax season to publicize your tax preparation services.
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Tips & Warnings
If you have a small check cashing business in your area, go in to speak to the owner about setting up a station inside to prepare taxes during tax season (January through April). Agree on a monthly rent to pay the check cashing owner and be sure that you are going to have an Internet connection and power supply to set up your computer and printer. In addition to check cashing places, many tax professionals work in supermarkets, hair salons, and other public businesses that receive a lot of customer traffic.
