Service Business idea -Tax Preparation Service

If this business venture interests you, talk to a tax professional, study tax preparation manuals and survey if there is a need for a tax preparer in your community.

What you need to know about this business

• Start-up costs are between $6000 to $8000 dollars

• Check with other preparer to see what the going rate per form is in your community. Begin with basic charges for simple forms, and then figure a fee for preparing each schedule, and additional forms.
• This is an in-home business unless you rent a temporary office during the tax season
• You need to have an attention for details and be accurate, honest, and patient.
• You fee should be based on the number of forms the IRS requires to be filed.
• Some preparers charge from $60 to several hundred depending on the number of forms and time involved in preparing a clients tax return.

How to market this business

• Place an ad in the business telephone directory
• Post fliers on community bulletin boards
• Place classified ads in the local newspapers
• Handout business cards to family and friends to pass on to others
• Encourage word-of-mouth referrals
• Put up road signs by your office (if permitted by zoning)
• Send direct mailings to business associates
• Volunteer to assist mature adults at senior centers for good publicity and referrals

Target Market

• Businesses and individuals that need help preparing and filing their federal and state income tax forms.

Home based equipment required

• Calculators
• Tax Forms
• Reference manuals
• Miscellaneous office supplies and equipment
• Dedicated telephone line with answering machine of service
• Fax machine
• Computer hardware and software for electronic filing
• Tax preparation software
• Home office setup to receive clients (unless you rent office space during tax season)