How to Start an Income Tax Preparation Service

Preparing income taxes for others can be a profitable service to offer. Many people prefer to leave the work of preparing taxes to trained professionals. If you have the skills to prepare taxes and you have the drive to start your own business, you can turn it into a good source of income.

• Ensure you have enough knowledge to handle tax preparation services as a business. If you have ever been through tax preparation classes, you should have the necessary knowledge. If you have not taken classes, consider signing up for a course before tax season. These courses are generally short in duration and inexpensive, and the costs can be recouped with a few preparations.


• Gather all the tools you need to get the job done. This can include tax software, printers, an office building, a fax machine and a phone system. If you sign up for a business line, your phone number will appear in the yellow page section of your local phone book, which can bring in more business.


• Hire a helper if you need assistance in handling everyday tasks like making appointments and returning phone calls.


• Acquire any business licenses required by your local area. You may need licenses from your city, county or state.


• Advertise your services. You can do this by simply letting your friends and family members know. Use social networking to spread the word and ask friends and family members to refer new customers to you. Many tax preparation chains offer a referral program, so consider implementing a referral program.