How to Start a New Online Business (Tax Preparation)

I was talking the other day about adapting your brand for the post-pandemic economy. I know that becoming an entrepreneur is not easy. Still, we have to focus on what comes next. Truth is, that until the coronavirus crisis is effectively managed, remote work, online business, and e-commerce will be at the top of the businesses surviving. So, if you do your own taxes -and you like doing them- you might want to start a new online business.

 

Wait, why taxes? Everyone has to pay taxes, either you like it or not, and with Congress making continue change to the Tax Code, we all grow frustrated and confused every year.

Besides, the U.S. Federal Government pushed the deadline for filing taxes until July 15, giving you plenty of time (which we have right now) to study for the courses needed and start branding your new business.

brad pitt Taxes quote
My version of the great quote from “Meet Joe Black.”

Tax Return Preparer

This is a business for someone with math skills that can build without necessarily needing a college degree.

You read that right! You don’t need a degree to prepare taxes, all you need to take are the mandatory training courses, and of course, excellent math skills.

I recommend starting reading From Tax Preparer to Business Owner, the Step-by-Step Guide to Starting a Tax Business to give you a clue on what it implies the business, of course, the book was published in 2019 and focuses on opening a brick and mortar business, not our case, you can skip the real estate advice on it (besides, the author is a real estate agent too, hence the information)

There are several IRS courses recommended taking to have a solid foundation in the individual tax filing process, the main ones you do need to consider are: the IRS Annual Filing Season Program (AFSP), and the Annual Federal Tax Refresher Course (AFTR)

Home-Based and Online Startup

Starting with these 10 things:

  1. Tax preparation training
  2. A computer
  3. Other equipment, such as a printer, copier, scanner, fax machine
  4. Reliable Internet
  5. Professional tax preparation software
  6. Office supplies
  7. Digital Marketing
  8. A Preparer Taxpayer Identification Number (PTIN) from the IRS (free right now)
  9. An Electronic Filers Identification Number (EFIN) from the IRS (no cost)
  10. Consider completing the IRS voluntary Annual Filing Season Program and receive an Annual Federal Tax Refresher Record of Completion

Startup Cost (not counting PC and printer):

  • Online Tax Preparation Class (U.S.) – $12.99 or less (look for ongoing sales)
  • IRS registration to become a Tax Preparer (obtain a Preparer Tax Identification Number (PTIN) – FREE right now!
  • Voluntary IRS Annual Filing Season Program – around $100 or less
  • Professional tax preparation software –  $50
  • Digital Marketing – FREE (you do it yourself!)
  • Tax Office Supplies (filers, home office shredders, rubber stamps, and file organizers) – around $150 or less

The grand total investment for this startup is about $312.99  depending on what you have, and the hourly rate for tax preparation services is $100, but you might want to consider a $75 fee to get as many clients you can manage.

pexels-photo-164686
Photo by Pixabay on Pexels.com

Add-ons

Once tax season is over, you need to offer additional services to your current clients, what do you do now that can be of service to them? Digital marketing? Social media? Virtual Assistant?

Keep your mind busy, plan for the future, and wash your hands! Other than that, get Amazon prime and enjoy after the kids go to sleep.

With Love,

Gaby

Some disclaimers: First, check state laws regarding other things you need to open a business where you live, and second, remember that I participate in different affiliate programs and that this post contains links, which means I might get some income from it.

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