How to Open a Business As a Tax Preparer
- 1). Decide on the type of clients you'd like to serve. Do you want to work with small businesses only? Are you an expert on investment-related taxes and you want to focus on clients with diverse portfolios? Perhaps you'd rather serve a more general clientele of anyone who needs your services.
- 2). Make your business official. Set up your business structure (sole proprietorship, partnership, LLC or corporation), obtain the required permits and licenses to do business in your city or county, and apply for an Employer Identification Number (EIN) from the Internal Revenue Service. Look into obtaining "Errors and Omissions" insurance to protect you if you make an error on a tax return. Set up your office, phone service and computer with Internet access for electronic filing. Determine pricing and set up your bookkeeping system, as you will have to pay taxes, too.
- 3). Market your business. You've already decided on the type of clientele you want to serve; now determine how to reach them. Create marketing materials that will appeal to your target market such as brochures, advertising, a website, press releases and articles. Ensure that your marketing materials appear where your target market will see the material as they thumb through magazines or browse the Web. Consider setting up a referral bonus program; for example, you might offer a discount to clients who refer new clients.
- 4). Open for business. Send out your press release and contact people in your target market directly to get clients quickly. Implement your marketing plan and continue to find ways to reach new customers. Commit to providing not just great tax returns but overall service to keep your clients coming back and referring new clients.