How To Set Up a Tax Business
Starting your professional tax business can be a detailed process, especially when you consider all of the rules and regulations and ever-changing legislation of the IRS. Here is an overview of the steps you can take to start your professional tax practice, whether you plan to become a solo practitioner or develop a more extensive practice.
1. Register your tax business with your state (Consult professional advice)
You can register your business with your state once you've settled on a type of entity for your company. You can get registered by filing a Doing Business As (DBA) name with your state or forming a limited liability company (LLC) or corporation for your business.
2. Obtain your PTIN and apply for your EFIN
If you’re going to charge anyone for tax prep services, you will need a PTIN, or Preparer Tax Identification Number, Register and apply for your PTIN online. Your PTIN is unique to you as an individual. If you plan to file 11 or more tax returns electronically as a business, you must first successfully obtain an EFIN and become an Authorized e-File Provider.
3. Determine your business model
You will need to decide whether you will provide year-round services, seasonal, or offer a variety of other financial services along with being an expert in tax preparation. You will also need to determine whether your focus will be on individual or business taxes or both.
4. Market your business
While tax professionals are always needed, marketing is still required to get your business known. One of the things that you need to do FIRST, is understand your marketing message. Who will you be known for as a tax preparer? Why will people come to you with their tax problems and what solutions will you provide them with? As an independent tax professional, you need to be able to stand out and target a specific type of customer(s) so that you will have a deeper impact.. You can also build a website, create a social media page, run ad campaigns, and target friends and family who can promote your company.
If you wish to get started and set up a tax business, learn or increase your income tax skills, and understand what you need to succeed as a tax business owner, schedule a call with me so that we can creating a tax business plan and improving your approach and build a profitable 5 to 6 figure business!
