You have made the decision. You want the freedom that comes along with being your own boss and you’ve decided that maybe it’s time to put your love of numbers to work, by starting your own tax preparation business. But how do you get started? Here are 4 tips that will help you get your new small business venture off the ground! 

1. Register Your Business

If you’re new to the profession, you’ll need to make sure your business is properly structured and registered with the Internal Revenue Service (IRS) by:

• Creating Your Preparer Tax Identification Number (PTIN) – Create this number on the IRS website, or by completing the Form W-12 and mailing it in.
• Applying for an Electronic Filing Identification Number (EFIN) – Complete this on the IRS website. You also need to provide fingerprints to the IRS. This process usually takes 45 days.
• Register with your State – You may or may not need to register as a tax preparation agent. Before you accept any clients, research your state’s requirements. 

Choose Your Office Space

When choosing your space, consider the following:

• Number of employees - will it just be you, or will you have others working with you?
• Cost – Your revenue, or potential revenue should help dictate what you can comfortably afford. Depending on your situation, working from home may serve your business best.
• Coworking – Shared spaces are a great alternative to traditional office spaces. They can be considerably less than paying rent to a landlord, but offer the benefits of having your own space – i.e., conference rooms, workspaces, etc.

Set Up Technology and Software

The tax preparation software you choose should be based on how you prefer to work and the tax forms you’ll need to serve your clients.

Market Your Business

Identify where your clients are coming from. Invest money in marketing and promotional efforts. You can:

• Build a website
• Create social media profiles
• Ask existing clients for referrals

Think you’re ready to get started? Xquisite Tax and Financial Services offers training and support. Begin your new career as a tax preparation professional today! Call Us.