The American tax system is quite complicated, so it’s not too surprising that many Americans have adverse feelings towards tax filing.
There are some people, though, who find their passions with taxes. They genuinely enjoy the days leading up to tax season and are eager to share their wisdom and expertise with others, especially with tax preparation.
Do you see yourself in a similar situation? Well, you likely already know that you can make a living as a tax preparer. If you would rather begin a tax preparation business instead of pursuing freelancing, here are some steps you must take to begin your journey.
1. Obtain the Required Education and Training
If you wish to open a tax preparation business, you will need to acquire the proper education and training.
The IRS maintains a list of approved education providers to prepare and represent tax returns. If you don’t find your school on this list, it is likely that your particular school is not properly accredited.
The IRS has also set up a Tax Preparer Program to prepare you to be a tax professional by helping you register with the IRS, receive your PTIN, and stay up to date on the new tax laws.
2. Prepare and Submit the Requirements
You need to register your tax preparation business with the state, local government, and IRS before proceeding with anything else.
Now, you should note that each state has different requirements, which is why you have to double-check the list for submission. Some of the documents you may need to prepare include the following:
- Preparer Tax Identification Number (PTIN)
- LLC, incorporation, or corporation application
- Sole or general proprietorship registration
- Electronic Filing Identification Number (EFIN)
- Tax compliance form
3. Ready the Designated Workstation or Office
Once you have submitted the requirements, you can focus on other aspects of starting a business, like setting up your workstation. If you’re operating from home, having a designated workstation helps separate work from home life.
That said, you likely know about the basics, such as a spacious desk, comfy chair, and a powerful laptop or computer that can handle your productivity tasks. Aside from that, you may also want to invest in trusty tax software for preparers for boosted efficiency.
There are many tax software programs right now, so it’s best to do your research beforehand. One example of a software you can rely on is the Keystone tax software, which comes with unlimited e-files, a customizable mobile application, tax estimator, and audit protection.
4. Establish Your Tax Preparation Business in the Market
Now that you have the proper education, training, workstation, and tools you require to obtain clients and start making money. You may want to create a strategic marketing plan to reach out to your target audience.
For instance, if you want to target those living in your local area, you can create flyers, business cards, and brochures to hand out. If you will focus on those living outside of your local area, you can create a website.
Once you have built a site, you can market your business by getting on social media to attract more clients. You may also want to consider joining a professional organization to network with other tax professionals.
Conclusion
If you have a passion for taxes, establishing a tax preparation business may be right for you. By taking the steps above, you can get your business up and running in no time at all.
Are you looking for the best tax preparation training to get you started on your journey? Keystone Tax Solutions can assist you in this endeavor.
Our tax training will equip you with knowledge regarding tax laws and train you for tax preparation. Contact us today to learn more about our training services.
