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One thing is for sure, tax professionals are and will always be in high demand. If you’ve been thinking about a career in tax preparation, there are a few things you need to do and know. That’s why I’ve put together this ultimate tax preparation business checklist to help you stay organized so you can focus on actually running your tax preparation company.

Being an entrepreneur in the tax industry has the potential to be a seriously lucrative gig. And with the right guidance, you can be well on your way to a six-figure income that allows you to live the life you’ve always dreamed.

So, let’s jump right in, shall we? Here’s my ultimate tax preparation business checklist.


…But first, want to make $100K in 90 days? Register now for my FREE + EXCLUSIVE online training, ‘Teach Me The Tax Game’ and learn everything you need to know to own a successful tax preparation business.


A Detailed Tax Preparation Checklist


Step 1: The Planning Stage


Creating a business plan is arguably the most important step of launching your entrepreneurial journey. A good plan should define how your business operates and prepare you for any unknowns along the way. 

There are many things to consider when drafting your business plan, including:

  • What are your startup and operating costs?
  • Who is your ideal consumer?
  • What will you charge the public for your services?
  • How do you plan on expanding growth and profitability? 

For a step-by-step guide, read my previous article: How To Create A Tax Preparation Business Plan


Step 2: Incorporate Your Tax Business


Next on the list, it’s time to incorporate your tax preparation business. This means you need to decide which type of legal entity you want to claim your company as.

You have a few choices, including:

  • Limited Liability Company (LLC)
  • S Corporation (S Corp)
  • Partnership
  • Sole Proprietorship

The one you choose is ultimately up to you, so make sure to do your due diligence. All state’s business laws are different, so depending on where you plan to operate, how you incorporate will vary. However, it’s worth noting that typically in the tax preparation business space, LLCs and S Corps are among the most popular.

For an in-depth look at both, read my previous article: LLC vs. S Corp: What Option Is Best For Entrepreneurs?


Step 3: Get Your Tax Information in Order


Before you can officially operate your tax preparation business, you have to set your company up for miscellaneous state and federal taxes. In order to do this, you have to attain a Federal Tax Identification Number, also called an EIN. This is done either on the website or by mail. Depending on which method of incorporation you choose, your business will be taxed accordingly.


Step 4: Open A Business Bank Account


Next on the tax preparation business checklist, open a business bank account for your company. This is going to come in handy when it comes to separating your personal and business finances and keeping everything organized.


Step 5: Start Tracking Your Finances


If you want to accurately keep tabs on your business finances, you need to be tracking all the money that goes in and out of your tax preparation company. Coming up with an efficient accounting system will make yearly tax seasons much easier.


Step 6: Acquire the Required Licenses or Permits


Of course, in order to start a tax prep business, you need to have a state-issued business license, a certificate of occupancy, and a business services contract. If you skip this step, you’ll be sorry since you could be risking heavy fines or a forced business closure.


Step 7: Create A Business Policy


Licenses and permits are very important, but another piece of the puzzle is to also ensure that your company is running securely and legally. Creating a company policy for your tax preparation company also helps you safeguard your business finances.


Step 8: Make A Tax Preparation Business Website


After you’ve crossed the previous steps off your tax preparation business checklist, it’s now time to create a business website that’s optimized for search engines. Above all, having a website adds to your professional legitimacy and lets people know what your company is all about.

Need help? Read this article next: How To Create A Tax Preparation Business Website.


Step 9: Choose Your Professional Tax Filing Software


Now that you’ve taken care of the basics, now is the time for you to put some thought into making your tax preparation business as productive and efficient as it can possibly be.

How do you streamline and grow your tax preparation business? You make sure you’re using the right software. TaxSlayer, TaxAct, Ultimate Tax, or TurboTax are all great platforms to explore.


Start Your Own Tax Preparation Business


And there you have it—a nine-step tax preparation business checklist! I hope this helps you navigate starting your own tax preparation company. Should you have any questions, I have answers!

With the right tools, resources, and effort, anyone can start a business. I’ve helped thousands of aspiring entrepreneurs start successful careers in the tax industry, and I can do the same for you.

Click here to connect with someone from my team and get one step closer to the career of your dreams.


…And while you’re here, don’t forget to take advantage of my FREE + EXCLUSIVE online training, ‘Teach Me The Tax Game’ and learn everything you need to build a successful career in this lucrative industry!



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