How to Start a Tax Service Business

For some, working on tax preparation is overwhelming.

Calculating taxes can be very intimidating for some people. Or it can simply take too much time. Having a person you can trust to properly administrate your tax filings can be quite a relief. But if you are the type of person who doesn't mind or even enjoys paperwork, are competent with a computer and have a head for numbers, starting a tax preparation service can be a very lucrative business.

Things You'll Need

• Computer
• Internet access
• Form instructions
• Printer/copier/scanner
• Envelopes
• Paper
• Stapler
• Labels
• Folders
• Tax preparation software

Instructions

1. Train in tax preparation. Even if you have an accounting background, a tax preparation training class can help you gain confidence and certification in your new profession. The Internal Revenue Service (IRS) offers free training for those willing to volunteer their service for a certain number of hours. Large tax service franchises offer courses you can pay to take and there are many courses offered on line.

2. Gather your equipment and supplies. You will require a computer and high-speed Internet access in order to do tax work and file taxes on line. Download the instructions to common forms like the 1040 and 1040EZ on the IRS website. You will also need a printer/copier/scanner, office supplies like envelopes, paper, stapler, labels and folders, and the tax preparation software of your choice.

3. Choose your fee structure. You need to determine if you will charge by the hour or by the page. Call around to other tax services and find out what they charge if you are uncertain.

4. Advertise your service. Start advertising well before tax season begins. Place ads in the local newspaper, classified ad websites and get to know people locally on social media sites. Post fliers on your community bulletin boards. Place ads in the newsletters of local churches or schools if they accept them. If you speak Spanish or another language popular in your community, advertise in that language. Offer discounts for referrals. Offer a senior discount. Set up a tax clinic and offer a quick session at a discounted rate.

References

• Entrepreneur Magazine: Business Ideas - Tax Preparation Service
• My Small Biz: Start a Tax Preparation Business