June 22, 2015

First steps in setting up a tax preparation business

On this weeks strategy session, I’m going to answer a question from Joe from New York who asked for some guidance on first steps in setting up a tax preparation business. There is a lot to it however, I’ll give the key points here. First off, you’ll need to get a Tax ID for your business. You should get this even if you'll work as a sole proprietor. Next, you’ll need to get an EFIN Number which stands for Electronic Filing Identification Number. Sounds exciting, huh? There are instructions on IRS.gov for getting both. We assist all Happy Tax Franchisees in getting these vital numbers for their business. You’ll need a business bank account and you’ll need to provide your Tax ID to the bank in order to get it set up. If you are going to prepare tax returns yourself, you’ll need tax software. There are at least a dozen commercial tax softwares out there with many different benefits, features and price points. If you are going to provide bank products, you’ll need a partner for that. There are 3 major providers of this in the industry currently. A bank product is not necessarily a loan as Refund Anticipation Loans have mostly been eliminated from the industry when the IRS stopped providing the debt indicator. Bank products are simply a way for a client to pay their fee to you directly out of the proceeds of their refund. You’ll need business liability insurance as well as errors and omissions insurance if you are preparing the returns yourself. If you are going to have a physical location, you’ll need to find a place, negotiate the rent, review and sign the lease, possibly do some renovations and order equipment, furniture and signage. Finally, you’ll need to build out your marketing. Your business cards, posters, flyers, website, social media pages, email templates. Marketing is the most important part of a business. Without it, you’ll have very few customers and it will be difficult to grow and reach your goals. So that’s the basic framework on what you need to do Joe in order to get set up in the tax business. Keep in mind, however, there are many little steps within each of those steps that you’ll need to get right. A lot goes into knowing what to do, how to do it when to do it and the best way to do it.

The great news for you since you’re reading here is that I’ve done it all before and have been doing so for the past 13 years. In operating 99 tax offices across the country, I’ve made most of the mistakes for you. We’ve documented the right steps in our operating system and way of doing business the successful way. The Happy way. All Happy Tax franchisees get our expert guidance, advice, and support. They are part of a national network and part of an exciting brand that is revolutionizing the industry. I invite you to join us and learn more if being a Happy Tax franchisee is a good fit for you. You can sign up for a Mutual Discovery Call with one of our executives at meetme.so/happytax

Have a wonderful and productive rest of the week and take care.

For more information on Happy Tax
Goto GetHappyTax.com
or email me at
Happy Tax.  - Smile, It’s Time to File.

Happy Tax

The #1 tax filing solution that combines expert CPA tax preparation with a fast, easy, convenient, and secure mobile experience!
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