business plan tax preparation service

Tax Preparation Business Plan Template

Written by Dave Lavinsky

Tax Preparation Business Plan

You’ve come to the right place to create your Tax Preparation business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Tax Preparation businesses.

Below is a template to help you create each section of your Tax Preparation business plan.

Executive Summary

Business overview.

Denver Tax Services, Inc. is a new tax preparation company located in downtown Denver, Colorado. We help businesses and residents prepare their taxes and are trained to provide guidance and help for a variety of tax situations. We offer the best customer service in the industry and have a guarantee of accuracy or your money back. Clients who work with us will feel supported during every step of the tax prep and filing process.

Denver Tax Services, Inc. is run by Robert Schwartz. Robert is a certified tax professional and has decades of tax preparation experience under his belt. He has worked for several other firms (including H&R Block) and has provided his services to thousands of clients. His experience and professionalism has gained him a loyal clientbase. The combination of Robert’s expertise, experience, and clientbase will ensure that Denver Tax Services, Inc. is a success.

Product Offering

Denver Tax Services, Inc. provides guidance and support through every step of the tax preparation process. We help individuals and businesses get the maximum refund possible and file their taxes on their behalf. In addition to our tax preparation services, we also provide tax planning, business consulting, estate and trust tax preparation, audit support, and IRS representation services.

Customer Focus

Denver Tax Services, Inc. will help individuals and businesses located within 20 miles of the Denver area. We expect that most of the businesses that utilize our services will be small businesses that have less than 1,000 employees and earn less than $10 million in revenue per year. Most individuals who seek out our services will be middle class or affluent in order to have the disposable income to pay for our services.

Management Team

Denver Tax Services, Inc.’s most valuable asset is the expertise and experience of its founder, Robert Schwartz. Robert has been a certified tax professional for the past 20 years. Throughout his career, he has developed a loyal client base, with many clients having stated that they will switch to Denver Tax Services, Inc. once the company is established and running. Robert’s combination of skills, tax knowledge, and loyal following will ensure that Denver Tax Services, Inc. is a successful firm.

Success Factors

Denver Tax Services, Inc. will be able to achieve success by offering the following competitive advantages:

• Robert Schwartz already has a clientbase from his twenty years of experience working with other tax firms. This clientbase will help the company grow with their repeat business and by referring their friends and loved ones to our services.
• The company will emphasize providing client-focused service so that our clients feel valued.
• The company will provide our tax preparation services at a more affordable rate than the competition.

Financial Highlights

Denver Tax Services, Inc. is currently seeking $400,000 to launch. The funding will be dedicated to the office build out, purchase of initial equipment, working capital, marketing costs, and startup overhead expenses. The breakout of the funding is below:

• Office design/build: $100,000
• Office equipment, supplies, and materials: $50,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $50,000
• Working capital: $50,000

The following graph below outlines the pro forma financial projections for Denver Tax Services, Inc.

Company Overview

Who is denver tax services, inc..

Denver Tax Services, Inc. helps the businesses and residents of Denver, Colorado with tax preparation and filing. We thoroughly analyze our clients’ tax situations to minimize their taxes and get them the biggest refund possible. We offer a guarantee of accuracy and will refund the fee for our services if our clients are not satisfied.

  In addition to helping our clients with tax preparation and filing, we also provide a suite of other tax services, including tax planning, audit support, and IRS representation. We don’t want to just help our clients out during tax time. We want to support our clients throughout the year so they don’t get any surprises come April 15th.

Denver Tax Services, Inc. is run by Robert Schwartz. Robert has decades of tax prep experience and has gained a loyal clientbase from providing his services through competing firms. After working for several tax prep firms around town, he surveyed his clientbase to see if they would be willing to switch to his new company once launched. Most of his clients responded positively, which motivated Robert to finally launch his business.

Denver Tax Services, Inc.’s History

Upon surveying his clientbase and finding a potential office, Robert Schwartz incorporated Denver Tax Services, Inc. as an S-Corporation in July 2023.

The business is currently being run out of Robert’s home office, but once the lease on Denver Tax Services, Inc.’s office location is finalized, all operations will be run from there.

Since incorporation, Denver Tax Services, Inc. has achieved the following milestones:

• Found an office space and signed Letter of Intent to lease it
• Developed the company’s name, logo, and website
• Hired an interior designer for the decor and furniture layout
• Determined equipment and fixture requirements
• Began recruiting key employees

Denver Tax Services, Inc.’s Services

Denver Tax Services, Inc.’s mission is to maximize the tax refunds of all of our clients. To do this, we help our clients through every step of the tax return process and analyze every situation to make sure each client is getting as many deductions as possible. We help our clients minimize their taxes as much as possible during tax time and provide guidance on how to minimize taxes for the following year.

In addition to tax preparation and filing, we also provide the following services:

• Tax planning
• Business consulting
• Estate and trust tax preparation
• Audit support
• IRS representation

Industry Analysis

Taxes are one of the few certainties in life. However, tax time can be one of the most confusing and stressful times of the year for Americans. As such, many Americans seek out tax preparation software or tax professionals to help them with their tax returns every year. Due to tax law becoming increasingly complicated, the tax preparation industry has become an essential industry for the American economy. As such, the industry is expected to thrive for the foreseeable future.

The tax preparation industry helps citizens and businesses make sense of their tax returns to minimize their taxes and maximize their deductions. These professionals go through every applicable tax form and ask about every possible situation to ensure that customers are getting the biggest refund possible. In addition to tax preparation and filing, these companies also provide a full suite of other tax services, such as planning, consultation, and audit support.

According to IBIS World, the tax preparation industry has been growing steadily at a CAGR of 4.3% for the past several years. The demand for these services only continues to grow as tax law becomes more complicated. Therefore, this growth is expected to continue, meaning that Denver Tax Services, Inc. can expect to be successful in the following years.

Customer Analysis

Demographic profile of target market.

Customer Segmentation

Denver Tax Services, Inc. will primarily target the following customer profiles:

• Small and medium-sized businesses
• Middle class residents and families
• Affluent residents and families

Competitive Analysis

Direct and indirect competitors.

Denver Tax Services, Inc. will face competition from other companies with similar business profiles. A description of each competitor company is below.

H&R Block

H&R Block has been a king in the tax prep industry for several decades. With thousands of locations around the country and thousands of professionals available online, customers of H&R Block can get the tax prep and guidance they need with ease. H&R Block offers software and online tax prep services but also has in person services for those who would rather work with a professional. H&R Block has several offices in the Denver area, so we expect them to be a major competitor.

TurboTax is the most popular tax preparation service in the market. TurboTax provides easy- to-use software so the average American can file their taxes with ease. For those that have more complicated tax situations, TurboTax also offers consultations with tax professionals for an additional fee. Whether customers are doing their taxes on their own or with a professional, TurboTax provides all the support they need to make tax filing a smooth process.

Though TurboTax will continue to be popular, the company’s reputation has tarnished in recent years. The company has been sued several times for misleading their customers and lying about their pricing. These practices have made TurboTax untrustworthy. As such, many former customers of TurboTax will be eager to get the help of a local and reputable tax professional such as those that work for Denver Tax Services, Inc.

Jackson Hewitt

Jackson Hewitt is another major competitor that has prepared and filed millions of tax returns during their 40 year tenure. Like H&R Block, they offer both online and in person tax services to create the most convenient experience possible for their clients. They are well regarded for their refund guarantee as well as their professionalism and customer service. As such, they will be another major competitor for Denver Tax Services, Inc.

Competitive Advantage

Denver Tax Services, Inc. will be able to offer the following advantages over the competition:

• Client-oriented service : Denver Tax Services, Inc. will put a focus on customer service and maintaining long-term relationships. We aim to be the best tax preparation firm in the area by catering to our customer’s needs and developing a strong connection with them.
• Management : Robert has been extremely successful working in the tax preparation sector and will be able to use his previous experience to help his clients better than the competition.
• Competitive pricing : Denver Tax Services Inc.’s pricing is more affordable than our competitors.
• Relationships : Having lived in the community for 20 years, Robert Schwartz knows many of the local leaders, newspapers and other influencers. As such, it will be relatively easy to build a large clientbase over the next several years.

Marketing Plan

Brand & value proposition.

Denver Tax Services, Inc. will offer a unique value proposition to its clientele:

• Client-focused tax prep services, where the company’s interests are aligned with the customer
• Service built on long-term relationships
• Big-firm expertise in a small-firm environment

Promotions Strategy

The promotions strategy for Denver Tax Services, Inc. is as follows:

Targeted Cold Calls

Denver Tax Services, Inc. will initially invest significant time and energy into contacting potential clients via telephone. In order to improve the effectiveness of this phase of the marketing strategy, a highly-focused call list will be used, targeting individuals in areas and occupations that are most likely to need tax prep services. As this is a very time-consuming process, it will primarily be used during the startup phase to build an initial client base.

Denver Tax Services, Inc. understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer other businesses and individuals by providing economic or financial incentives for every new client produced. This strategy will increase in effectiveness after the business has already been established.

Social Media

Denver Tax Services, Inc. will invest heavily in a social media advertising campaign. The company will create social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.

Website/SEO

Denver Tax Services, Inc. will invest heavily in developing a professional website that displays all of the company’s services. It will also invest heavily in SEO so that the firm’s website will appear at the top of search engine results.

Denver Tax Services, Inc.’s fees will be moderate and competitive so clients feel they are receiving great value when utilizing our tax prep services.

Operations Plan

The following will be the operations plan for Denver Tax Services, Inc. Operation Functions:

• Robert Schwartz will be the Owner of Denver Tax Services, Inc.. In addition to providing tax prep services, he will also manage the general operations of the business.
• Robert Schwartz is joined by a full-time administrative assistant, Rebecca Hackett, who will take charge of the administrative tasks for the company. She will also be available to answer client questions and will be the primary employee in charge of client communications.
• As the company builds its client base, Robert will hire more tax professionals to provide the company’s services, attract more clients, and grow our business further.

Milestones:

Denver Tax Services, Inc. will have the following milestones completed in the next six months.

• 9/2023 Finalize lease agreement
• 10/2023 Design and build out Denver Tax Services, Inc.
• 11/2023 Hire and train initial staff
• 12/2023 Kickoff of promotional campaign
• 1/2024 Launch Denver Tax Services, Inc.
• 2/2024 Reach break-even

Denver Tax Services, Inc.’s most valuable asset is the expertise and experience of its founder, Robert Schwartz. Robert has been a certified tax professional for the past 20 years and gained his experience and clientbase by working for competing firms. After years of working with large firms (such as H&R Block), Robert decided he wanted to run his own tax prep firm where he can provide quality services in a small firm environment. He surveyed his clientbase and found that many clients would be willing to transition to his business once established. Robert’s combination of skills, tax knowledge, and loyal clientbase will ensure that Denver Tax Services, Inc. is a successful firm.

Though he has never run his own business, Robert Schwartz has worked as a tax professional long enough to gain an in-depth knowledge of the operations (e.g., running day-to-day operations) and the business (e.g., staffing, marketing, etc.) sides of the industry. He also already has a starting client base that he served while working for other tax prep firms. He will hire several other employees who can help him run the aspects of the business that he is unfamiliar with.

Financial Plan

Key revenue & costs.

Denver Tax Services, Inc.’s revenues will primarily come from charging clients for the tax preparation services we provide. We will charge our clients an hourly rate that will vary depending on the type of tax return they are filing. Clients who owe money on their tax return will be charged directly for our services. Clients who are expecting a refund have the option to either pay us directly or let us take the fee from their refund.

The notable cost drivers for the company will include labor expenses, overhead, and marketing expenses.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Number of clients per year:
• Year 4: 100
• Year 5: 140
• Annual Rent: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Tax Preparation Business Plan FAQs

What is a tax preparation business plan.

A tax preparation business plan is a plan to start and/or grow your tax preparation business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Tax Preparation business plan using our Tax Preparation Business Plan Template here .

What are the Main Types of Tax Preparation Businesses? 

There are a number of different kinds of tax preparation businesses , some examples include: Certified Public Accountant (CPA), Tax Attorney, and Enrolled Agent (EA).

How Do You Get Funding for Your Tax Preparation Business Plan?

Tax Preparation businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Tax Preparation Business?

Starting a tax preparation business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Tax Preparation Business Plan - The first step in starting a business is to create a detailed tax preparation business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your tax preparation business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your tax preparation business is in compliance with local laws.

3. Register Your Tax Preparation Business - Once you have chosen a legal structure, the next step is to register your tax preparation business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your tax preparation business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Tax Preparation Equipment & Supplies - In order to start your tax preparation business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your tax preparation business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Tax Preparation Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Financial Service Industry » Accounting, Bookkeeping and Tax Preparation

Are you about starting a tax preparation business ? If YES, here’s a complete sample tax preparation service business plan template & feasibility report you can use for FREE to raise money .

In case you didn’t know, there are loads of households, small businesses, mom and pop businesses, amongst a few without the faintest idea of any tax preparation skills. These businesses struggle with their tax concerns a lot. Research shows that one of the reasons why many small businesses remain small and sometimes close shop is not because they don’t have clients or capital to run the business but because they fail to keep their books and manage their tax properly.

If you are an accountant or a tax consultant, then you can leverage on this read to start your own tax preparation services Business.

You can be sure that your services would always be in demand by those small businesses that can’t afford to hire a full time accountant or tax consultant. They know that it would save them cost and one good thing about it is that you can handle up to 20 clients per time depending on how organized and hardworking you are.

A Sample Tax Preparation Service Business Plan Template

1. industry overview.

The financial services industry is indeed a very broad industry and one of the active lines of businesses in the industry is tax preparation services business.

Tax preparation services is all about helping individuals and small businesses provide income tax compilation services, income tax return preparation services, and other tax return preparation services; it is part of the process of financial accounting in business.

In recent times, the Tax Preparation Services industry went through a slight downturn during the recession due to a decline in national employment and of course a decrease in disposable income. However, the industry rebounded immediately after the recession phase as the national unemployment rate fell, and revenue increased as more Americans were required to file tax returns.

At about same period, the tax preparation services industry landscape begun to change, with consumer preferences increasingly trending toward establishments that offer online filing services options.

Despite the fact that the recent improving economic conditions are expected to support the growth of revenue generated in the industry, some tax preparations’ performance will be stunted, as online tax preparation service providers pose a big threat traditional brick-and-mortar firms.

The Tax Preparation Services industry is indeed a large industry and pretty much active in countries such as United States of America, United Kingdom, France, Italy, Holland, Switzerland, Japan, China, Germany, and Canada et al.

Statistics has it that in the united states of America alone, there are about 118,890 registered and licensed Tax Preparation Services firm responsible for employing about 292,718 and the industry rakes in a whooping sum of $10 billion annually.

The industry is projected to enjoy 4.5 percent annual growth. The establishments with the lion share available in this industry in the United States are H & H Block Inc., Intuit and Jackson Hewitt.

According to a report published by IBISWORLD, it was observed that households in all socioeconomic groups across the United States use the services of tax preparers. As a result, industry establishments and revenue are distributed in line with regional population.

Many people use the tax preparation firm nearest to them, out of convenience. Which is why when an area is underserved, more firms move into that area to stake a claim in the market.

In the same way, tax preparation firms tend to move locations when the competition is too high and profit margins begin to suffer.

Approximately 85.1 percent of operators in this industry are non-employers that do not have the capacity or market power to provide services beyond their own neighborhood. While some of these firms are part of a national network, they primarily serve local consumers.

One thing is certain about starting a tax preparation services business, if you are able to conduct your market research and feasibility studies , you are more likely not going to struggle to secure clients because there are always individuals, households, mom and pop shops, start – ups and even corporate organization who would want to hire your services.

Lastly, with tax preparation services business, you can afford to partner with other smaller firms that are into financial related services.

You can partner with accounting and bookkeeping consulting firm, you can partner with auditing firms and you can partner with human resources consulting firms et al. The bottom line is that, if you have a robust network and you are well positioned, you can indeed maximize your tax preparation services business.

2. Executive Summary

Henry Murdock Tax Consulting, LLP is a registered and licensed financial consulting firm with strong bias in tax preparation services and will be based in Saint Paul – Minnesota.

The firm will handle all aspects of tax preparation related services; services such as income tax compilation services, income tax return preparation services, basic tax preparation services, standard tax preparation services, full-service tax preparation services, tax-related financial products and other related tax return preparation services.

We are aware that to run an all – round and standard tax preparation services firm can be demanding which is why we are well trained, certified and equipped to perform excellently well. Henry Murdock Tax Consulting, LLP is a client – focused and result driven tax preparation services firm that provides broad- based services at an affordable fee that won’t in any way put a hole in the pocket of our clients.

We will offer standard and professional tax preparation services to all to our individual clients, and corporate clients at local, state, national, and international level. We will ensure that we work hard to meet and surpass our clients’ expectations whenever they hire our services.

At Henry Murdock Tax Consulting, LLP, our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professionals who are well experienced in the financial consulting services industry with bias in accounting, bookkeeping and payroll administration.

Henry Murdock Tax Consulting, LLP will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Our plan is to position the business to become the leading brand in tax preparation services line of business in the whole of Saint Paul – Minnesota, and also to be amongst the top 20 tax preparation services businesses in the United States of America within the first 10 years of operations.

This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are enthusiastic and confident that Saint Paul – Minnesota is the right place to launch our tax preparation services business before sourcing for clients from other cities in The United States of America.

Henry Murdock Tax Consulting, LLP is founded by Henry Murdock and Lucy Kent, his business partner for many years. The organization will be managed by both of them since they have adequate working experience to manage such business. Henry Murdock has well over 5 years of experience working at various capacities within the financial cum tax consulting services industry in the United States of America.

Mr. Henry Murdock graduated from both University of California – Berkley with a Degree in Accounting, and University of Harvard (MSc.) and he is a chartered account with background on taxation. Lucy Kent has ample experience in the area of tax consulting and financial auditing.

3. Our Products and Services

Henry Murdock Tax Consulting, LLP is going to offer varieties of services within the scope of the tax preparation services industry in the United States of America. Our intention of starting our tax preparation services firm is to work with individuals, household, smaller organizations (start – ups and mom and pop shops) and also well – established corporate organizations who would want to outsource their tax preparation concerns.

We are well prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals, aim and ambition. Our business offering are listed below;

• Income tax compilation services
• Income tax return preparation services
• Basic tax preparation services
• Standard tax preparation services
• Full-service tax preparation services
• Tax-related financial products
• Other tax return preparation services
• Other financial consulting and advisory related services

4. Our Mission and Vision Statement

• Our vision is to build a tax preparation services brand that will become the number one choice for individuals, household, smaller businesses and corporate clients in the whole of Saint Paul – Minnesota.
• Our vision reflects our values: integrity, service, excellence and teamwork.
• Our mission is to provide professional, reliable and trusted tax preparation services that assist individuals, household, start – ups, corporate organization and non-profit organizations in organizing their tax returns related concern.
• We will position the business to become the leading brand in the tax preparation services line of business in the whole of Minnesota, and also to be amongst the top 20 tax preparation services firms in the United States of America within the first 10 years of operations.

Our Business Structure

Ordinarily we would have settled for two or three staff members, but as part of our plan to build a standard tax preparation services firm in Saint Paul – Minnesota, we have perfected plans to get it right from the beginning which is why we are going the extra mile to ensure that we have competent, honest and hardworking employees to occupy all the available positions in our firm.

The picture of the kind of tax preparation services business we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around Saint Paul – Minnesota as long as they are willing and ready to work with us to achieve our business goals and objectives. Below is the business structure that we will build Henry Murdock Tax Consulting, LLP;

• Chief Executive Officer
• Tax Preparation Administrator

Admin and HR Manager

Marketing and Sales Executive

• Customer Care Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Tax Preparation Consultants

• Handle income tax compilation services
• Handles income tax return preparation services
• Responsible for handling basic tax preparation services
• Handles standard tax preparation services
• Responsible for handling full-service tax preparation services
• In charge of all tax-related financial products
• Handles other tax return preparation services
• Responsible for other financial consulting and advisory related services
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily office activities.
• Identifies, prioritizes, and reaches  out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects.
• Writes winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• create reports from the information concerning the financial transactions recorded by the bookkeeper
• Prepare the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Client Service Executive / Front Desk Officer

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels / documents for the company
• Distribute mails in the organization
• Handles any other duties as assigned my the line manager

6. SWOT Analysis

Henry Murdock Tax Consulting, LLP engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a well – structured tax preparation services firm that can favorably compete in the highly competitive financial consulting cum tax preparation services industry.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Henry Murdock Tax Consulting, LLP. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Henry Murdock Tax Consulting, LLP;

Our core strength lies in the power of our team; our workforce. We have a team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details and to deliver excellent tax preparation jobs. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.

As a new tax preparation services firm, it might take some time for our organization to break into the market and gain acceptance especially from top corporate clients in the already saturated tax preparation cum financial consulting services industry; that is perhaps our major weakness. So also we may not have the required cash to give our business the kind of publicity we would have loved to.

• Opportunities:

The opportunities in the tax preparation cum financial consulting services industry is massive considering the number of individuals, households, mom and pop businesses, start – ups and of course corporate organizations who can’t afford to do without the services of tax preparation service providers. As a standard and well – positioned tax preparation service provider, we are ready to take advantage of any opportunity that comes our way.

Some of the threats that we are likely going to face as a tax preparation service firm operating in the United States are unfavorable government policies , the arrival of a competitor within our location of operations and global economic downturn which usually affects purchasing / spending power. There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

The financial consulting services industry of which tax preparation services is a subset of is indeed a very large industry and of course it is one industry that works for individuals and businesses across different industries. If you are conversant with the trend in the financial consulting services industry,.

You will agree that loads of mom and pops, businesses, and start – up ventures that do not have the capacity to hire chatter accountants to handle their tax returns concern would naturally hire the services of tax preparation services providers who would usually charge them service charge.

Relatively, it is cheaper and less stressful to hire the services of tax preparation service providers as against employing a qualified accountant or tax consultant. In recent times, the Tax Preparation Services industry went through a slight downturn during the recession due to a decline in national employment and of course a decrease in disposable income.

However, the industry rebounded immediately after the recession phase as the national unemployment rate fell, and revenue increased as more Americans were required to file tax returns. At about same period, the tax preparation services industry landscape begun to change, with consumer preferences increasingly trending toward establishments that offer online filing services options.

Another notable trend in the tax preparation cum financial consulting services industry is that in the last five years, the industry has performed impressively as a large reduction in unemployment boosted the revenue generated in the industry.

So also, the tax preparation cum financial consulting services industry has benefited from the advancement of online and computer tax preparation services, with new cloud-based offerings providing a new revenue stream for operators, and attracting new customers. Going forward, increasing product penetration and of course an expanding customer base is expected to drive growth in the industry.

8. Our Target Market

The demographic and psychographics composition of those who need the services of tax preparation service providers cuts across individuals and households, small businesses and large corporations.

Henry Murdock Tax Consulting, LLP will initially serve individuals and households, small to medium sized business, from new ventures to well established businesses and individual clients, but that does not in any way stop us from growing to be able to compete with the leading tax preparation service firms in the United States.

As a standard and licensed tax preparation service firm, Henry Murdock Tax Consulting, LLP offers a wide range of tax preparation services cum financial consulting services hence we are well trained and equipped to services a wide range of clientele base.

Our target market cuts across businesses of different sizes and industries. We are coming into the industry with a business concept that will enable us work with the small businesses and bigger corporations in and around Saint Paul – Minnesota and other cities in the United States of America. Below is a list of the businesses and organizations that we have specifically design our products and services for;

• Individuals (corporate executives and business people)
• Mom and Pop Businesses
• Corporate Organizations
• Political Parties / Politicians
• Hotels and Restaurants
• Schools (High Schools, Colleges and Universities)
• Sport Organizations
• Entrepreneurs and Start – Ups

Our Competitive Advantage

The level of competitions in the tax preparation cum financial consulting services industry depends largely on the location of the business and of course the niche of your financial consulting services. If you can successfully create a unique brand identity for your tax preparation services firm or carve out a unique market, you are likely going to experience less competition.

For instance if you are one of the few tax preparation services firms in your locations that also offer bookkeeping and financial auditing services and also online tax preparation services, you are likely going to have a competitive advantage over your competitors.

Although the competition in the tax preparation services line of business is not just within same service providers but also other financial consulting related service providers in the tax preparation cum financial consulting services industry.

We are quite aware that to be highly competitive in the tax preparation services cum financial consulting services industry means that we should be able to deliver consistent quality service, our clients should be able to experience remarkable difference cum improvement and we should be able to meet the expectations of clients.

Henry Murdock Tax Consulting, LLP might be a new entrant into the tax preparation services cum financial consulting services industry in the United States of America, but the management staffs and owners of the business are considered gurus. They are people who are core professionals and licensed and highly qualified tax consultants in the United States. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (start – ups tax preparation service providers) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Henry Murdock Tax Consulting, LLP is established with the aim of maximizing profits in the tax preparation services cum financial consulting services industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis and sign retainer – ship with most of our clients.

Henry Murdock Tax Consulting, LLP will generate income by offering the following tax preparation cum tax consulting services for individuals, households, start – ups, NGOs and for corporate organizations;

• Provide income tax compilation services
• Provide income tax return preparation services
• Provide basic tax preparation services
• Provide standard tax preparation services
• Provide full-service tax preparation services
• Provide tax-related financial products
• Provide other tax return preparation services

10. Sales Forecast

One thing is certain, there would always be individuals, households, mom and pop shops, start – ups, NGOs and corporate organizations who would need the services of professional tax preparation services providers.

We are well positioned to take on the available market in Saint Paul – Minnesota and other key cities in the United States of America and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond Saint Paul to other cities in Minnesota and other states in the United States.

We have been able to critically examine the tax preparation services cum financial consulting market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Saint Paul – Minnesota.

Below is the sales projection for Henry Murdock Tax Consulting, LLP, it is based on the location of our business and the wide range of tax preparation services that we will be offering;

• First Fiscal Year-: $150,000
• Second Fiscal Year-: $350,000
• Third Fiscal Year-: $750,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there are stiffer competition amongst tax preparation service providers and other related financial consulting service providers in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing.

Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.

We will also ensure that our excellent job delivery speaks for us in the market place; we want to build a standard tax preparation service business that will leverage on word of mouth advertisement from satisfied clients (both individuals and corporate organizations).

Our goal is to grow our tax preparation services firm to become one of the top 20 tax preparation services firms in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the Saint Paul – Minnesota but also in other cities in the United States of America.

Henry Murdock Tax Consulting, LLP is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our business by sending introductory letters alongside our brochure to corporate organizations, schools, households and key stake holders in Saint Paul and other cities in Minnesota.
• Advertise our tax preparation services business in relevant financial and business related magazines, newspapers, TV stations, and radio station.
• List our tax preparation services business on yellow pages ads (local directories)
• Attend relevant international and local finance and business expos, seminars, and business fairs et al
• Create different packages for different category of clients (start – ups and established corporate organizations) in order to work with their budgets and still deliver quality services to them
• Leverage on the internet to promote our tax preparation services business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients.

11. Publicity and Advertising Strategy

We are aware of the importance of adequately publicizing a start – up business like ours hence we have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to take the tax preparation services cum financial consulting services industry by storm which is why we have made provisions for effective publicity and advertisement of our travels and tours agencies. Below are the platforms we intend to leverage on to promote and advertise Henry Murdock Tax Consulting, LLP;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
• Install our Bill Boards on strategic locations all around Saint Paul – Minnesota.
• Engage in road show from time to time in target neighborhood in and around Saint Paul – Minnesota
• Distribute our fliers and handbills in target areas in and around Saint Paul – Minnesota
• Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.

12. Our Pricing Strategy

Hourly billing for tax preparation services cum financial consulting services is a long – time tradition in the industry.  However, for some types of tax preparation services cum financial consultancy services, flat fees make more sense because they allow clients to better predict consultancy costs.

As a result of this, Henry Murdock Tax Consulting, LLP will charge our clients a flat fee for many basic services such as tax preparation services and business advisory services and tax consulting et al.

At Henry Murdock Tax Consulting, LLP we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance.  In addition, we will also offer special discounted rates to individuals, households, start – ups, nonprofits, cooperatives, and small social enterprises.

We are aware that there are some clients that would need regular access to tax consultancy and advisory services and assistance, we will offer flat rate for such services that will be tailored to take care of such clients’ needs.

• Payment Options

At Henry Murdock Tax Consulting, LLP our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our service charge.

13. Startup Expenditure (Budget)

Starting a tax preparation services firm can be cost effective; this is so because on the average, you are not expected to acquire expensive machines and equipment.

Basically what you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to furniture and equip the office, the amount to purchase the required tax and accounting software applications, the amount needed to pay bills, promote the business and obtain the appropriate business license and certifications.

This is the financial projection and costing for starting Henry Murdock Tax Consulting, LLP;

• The Total Fee for incorporating the Business in the United States of America – $750.
• The budget for basic insurance policy covers, permits and business license – $2,500
• The total amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $40,000.
• The Cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
• The cost for purchase of the required software applications (CRM software, Tax, Accounting and Bookkeeping software and Payroll software et al) – $10,500
• The Cost of Launching your official Website – $600
• The budget for paying  at least three employees for 3 months plus utility bills – $10,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
• Miscellaneous: $1,000

Going by the report from the market research and feasibility studies conducted, we will need over one hundred and fifty thousand ( 150,000 ) U.S. dollars to successfully set – up a medium scale but standard tax preparation services firm in the United States of America.

Generating Funding / Startup Capital for Henry Murdock Tax Consulting, LLP

Henry Murdock Tax Consulting, LLP is a business that will be owned and managed by Henry Murdock and his business partner for many years Lucy Kent. They are the sole financial of the firm, but may likely welcome partners later which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000 ) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Henry Murdock Tax Consulting, LLP is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our tax preparation services cum tax consulting services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Henry Murdock Tax Consulting, LLP will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check : Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Securing a standard office facility (renovation inclusive): Completed
• Generating part of the start – up capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the industry: In Progress

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Tax Preparation Business Plan Template

Written by Dave Lavinsky

Tax Preparation Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their tax preparation companies.

If you’re unfamiliar with creating a tax preparation business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a tax preparation business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Tax Preparation Business Plan?

A business plan provides a snapshot of your tax preparation business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Tax Prep Business

If you’re looking to start a tax preparation business or grow your existing tax preparation company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your tax preparation business to improve your chances of success. Your tax preparation business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Tax Preparation Businesses

With regards to funding, the main sources of funding for a tax preparation business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for tax preparation companies.

Finish Your Business Plan Today!

How to write a business plan for a tax preparation business.

If you want to start a tax preparation business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your tax preparation business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of tax preparation business you are running and the status. For example, are you a startup, do you have a tax preparation business that you would like to grow, or are you operating a chain of tax preparation businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the tax preparation industry.
• Discuss the type of tax preparation business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of tax preparation business you are operating.

For example, you might specialize in one of the following types of tax preparation businesses:

• Certified Public Accountant (CPA): This type of tax preparation professional is someone who is licensed to provide an array of accounting services. CPAs can represent their clients in a variety of tax matters such as audits, collections, and appeals with the IRS.
• Tax Attorney: This type of tax preparation professional is licensed to practice law. Tax attorneys can prepare tax returns, and provide clients with tax planning services.
• Enrolled Agent (EA): This type of tax preparation professional is licensed by the IRS and trained in federal taxes. This type of tax preparation professional can represent both business and individual clients.

In addition to explaining the type of tax preparation business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients served, the number of tax issues resolved with positive outcomes, and reaching $X amount in revenue, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the tax preparation industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the tax preparation industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your tax preparation business plan:

• How big is the tax preparation industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your tax preparation business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your tax preparation business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of tax preparation business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other tax preparation businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of professionals licensed to perform tax preparation services, do-it-yourself tax software such as TurboTax, or an in-house accountant. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of tax preparation business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for clients to acquire your services?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a tax preparation business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of tax preparation company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide tax preparation, IRS representation, or appeals services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the services you offer and their prices.

Place : Place refers to the site of your tax preparation company. Document where your company is situated and mention how the site will impact your success. For example, is your tax preparation business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your tax preparation marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your tax preparation business, including answering calls, planning and providing consultations, billing clients and collecting payments, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your tax preparation business to a new city.  

Management Team

To demonstrate your tax preparation business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing tax preparation businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a tax preparation business or successfully running a small CPA firm.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you charge by the hour and will you offer a discount for repeat clients? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your tax preparation business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a tax preparation business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a copy of your state license.  

Writing a business plan for your tax preparation business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the tax preparation industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful tax preparation business.

Don’t you wish there was a faster, easier way to finish your Tax Preparation business plan?

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business plan writer can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Tax Business Plan Template: Everything You Need to Know

Its a strategy for all aspects of your business. It is a necessity for those looking to start a tax preparation or tax consulting business. 3 min read updated on February 01, 2023

A tax business plan template is a strategy for all aspects of your business. It is a necessity for those looking to start a tax preparation or tax consulting business. A tax preparation business assists individuals and small businesses to prepare and file their taxes correctly and accurately. There are several advantages to choosing a tax preparation business:

• There is little initial investment compared to most other businesses. A tax preparation business can even be started with $500 or less.
• Tax preparation is a flexible business that can be done on a part-time basis and allows for the flexibility to work around family and other obligations. This is a great business venture for stay-at-home parents.
• Tax preparation and consultation services are in demand by small businesses that don't have a full-time accountant. These businesses are able to pay for your expertise only when they need it the most.
• As a tax consultant, earnings can be $100-$200 per month, depending on your expertise.

The first step in determining if a tax business is the right choice for you is to complete research to determine the feasibility. Research is a way to learn important things about the business that will be helpful in your success. This will help you determine if this is the right business for you, and what type of business you should create.

This information gathering will assist you in preparing a tax business plan template. A tax preparation business service plan can include several different parts consisting of a business overview, strategy, marketing, accounting, services, and all aspects of the business. Before you start your business, make sure you consider how to form a solid business plan.

Sample Tax Preparation Service Business Plan

Business overview/products and services/mission statement.

• The company is a financial consulting firm specializing in tax preparation of all types- income tax compilation and returns, tax preparation, financial services, and standard, basic and full-service income tax preparation.
• The employees will be professionals in the financial consulting services industry whose ethics and values align with those of the company.
• The company and employees will be held accountable to meet their clients' needs and will create a working environment focused on sustainable living and community involvement.
• The brand goal is to become the top tax preparation service in the city and among the top tax preparation businesses in the United States within 20 years.
• The tax consulting firm will offer many services within the scope of tax preparation services, tax consulting, and tax-related financial products. The primary clients will be individuals, start of corporations, and established corporations looking to outsource tax preparation.

SWOT Analysis/ Market Analysis/Accounting Plan

• Strength- Our strength lies in our employees who are professional, well-trained, and do what it takes to ensure that our clients get a great value.
• Weakness- As a new company, it will take time to gain respect and acceptance in the community. We also do not yet have the cash flow for expensive marketing efforts.
• Opportunities- There are many opportunities for a tax preparation services company in the community. Individuals and companies both large and small need to use tax preparation services to ensure they are reporting accurately and to save them money.
• Threats- Other similar financial services firms in the area will cause a threat, as well as the existence of certain government policies regarding taxes. Neither of these threats can be reduced or eliminated.
• Financial services and tax preparation is a large industry with the potential to serve many individuals and businesses in need of these services.
• Many small businesses and mom and pop shops don't have the financial capacity to hire a full-time accountant but find it cost effective and less stressful to use tax preparation services and financial consulting services to ensure that everything is handled correctly.
• The target market is anyone who needs tax preparation services and is not restricted to any particular demographic groups. This also includes businesses of any size.
• Competitive advantage- the competitive advantage depends on the location of the business and if it is possible to create a unique angle in which to market your business in that locale, such as offering related services

It is possible to start a successful tax preparation business in just a few days with appropriate research and resources. Training is important, and a degree in an accounting or financial field will put you at an advantage. Make sure to complete state requirements, such as registering your new business.

For more information on tax business plan templates or legal requirements, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

Hire the top business lawyers and save up to 60% on legal fees

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• Sample Business Plans

Tax Preparation Business Plan

Tax preparation is a recession-proof business. No matter what happens to the economy, this business never goes off-trend. So starting a tax preparation business is an excellent choice.

Starting a business from scratch and standing up against big industry giants may feel overwhelming, but a detailed business plan can help you succeed.

Need help writing a business plan for your tax preparation business? You’re at the right place. Our tax preparation business plan template will help you get started.

Free Business Plan Template

Download our Free Tax Preparation Business Plan Template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Tax Preparation Business Plan?

Writing a tax preparation business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Introduce your business: Start your executive summary by briefly introducing your business to your readers.
• This section may include the name of your tax preparation business, its location, when it was founded, the type of tax preparation business (E.g., franchise tax preparation services, enrolled agent firms, tax law firms.), etc.
• Market opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Tax preparation services: Highlight the tax preparation services you offer your clients. The USPs and differentiators you offer are always a plus.
• For instance, your services may include tax preparation, accounting, tax resolution and representation, tax planning, and tax consulting.
• Marketing & sales strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

• Business description: Describe your business in this section by providing all the basic information:
• Franchise tax preparation services
• Independent tax preparation services
• Online tax preparation services
• Enrolled Agent (EA) firms
• Tax law firms
• Certified Public Accountant (CPA) firms
• Describe the legal structure of your tax preparation company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the founders or owners of your tax preparation business. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Business history: If you’re an established tax preparation service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.
• Additionally, If you have received any awards or recognition for excellent work, describe them.
• Future goal: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Target market: Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.
• For example, if you are an independent tax preparation service provider, you might target busy individuals, self-employed professionals, retirees, new immigrants, and people with low and moderate incomes.
• Market size and growth potential: Describe your market size and growth potential and whether you will target a niche or a much broader market.
• Competitive analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your tax preparation services from them. Point out how you have a competitive edge in the market.
• Market trends: Analyse emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.
• For instance, the COVID-19 pandemic has accelerated the trend toward remote and hybrid work in the tax preparation industry, so you may need to explain how you plan to handle your remote team.
• Regulatory environment: List regulations and licensing requirements that may affect your tax preparation company, such as business registration, Preparer Tax Identification Number (PTIN), state-specific requirements, tax preparer bond, insurance requirements, etc.

Here are a few tips for writing the market analysis section of your tax consultant business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Preparation of federal, state, and local tax returns
• Review of tax documents
• Electronic filing
• Tax planning
• Audit assistance
• Tax resolution services
• Describe each service: Provide a detailed description of each service you provide, including the process involved, the time required, etc.
• Tax resolution processes, for instance, include consultation, investigation, strategy development, negotiation, resolution, and ongoing compliance.
• Quality measures: This section should explain how you maintain quality standards and consistently provide accurate, reliable, and timely services.
• This may include,
• Regular training and education for staff
• Thorough review and quality control processes to ensure accuracy
• Compliance with all relevant laws and regulations governing tax preparation services, etc.
• Additional services: Mention if your tax preparation company offers any additional services. You may include services like IRS audit support, back taxes, delinquent filing assistance, and tax planning and consulting.

In short, this section of your tax preparation plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Unique selling proposition (USP): Define your business’s USPs depending on the market you serve, your expertise in the market, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.
• For example, personal attention, year-round services, niche specialization, and commitment to excellence could be some of the great USPs for a professional tax preparation company.
• Pricing strategy: Describe your pricing strategy—how you plan to price your tax preparation services and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers to your tax preparation service.
• Marketing strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, networking, Google ads, brochures, email marketing, content marketing, and print marketing.
• Sales strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include direct sales calls, partnering with local notary businesses, offering referral discounts, etc.
• Customer retention: Describe your customer retention strategies and how you plan to execute them. Your customer retention strategies may include introducing loyalty programs, proactive communication, personalized customer services, and offering referral discounts.

Overall, this section of your tax preparation business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your tax preparation business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• ESoftware & Technology: Include the list of software and technology required for tax preparation, such as tax preparation software, client management software, financial management software, document management software, and regulatory compliance software.
• Explain how these software and technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your tax preparation business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founder/CEO: Mention the founders and CEO of your tax preparation company, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.
• It should include key executives, senior management, and other department managers (e.g., Tax manager, Accounting manager.) involved in the business operations, including their education, professional background, and any relevant experience in the taxation industry.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.
• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your tax preparation services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement. Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance sheet: Create a projected balance sheet documenting your tax preparation business’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the taxation industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your tax preparation company business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

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This sample tax preparation business plan will provide an idea for writing a successful tax preparation plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our tax preparation business plan pdf .

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Frequently asked questions, why do you need a tax preparation business plan.

A business plan is an essential tool for anyone looking to start or run a successful tax preparation business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your tax preparation company.

How to get funding for your tax preparation business?

There are several ways to get funding for your tax preparation business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your tax preparation business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your tax preparation business plan and outline your vision as you have in your mind.

What is the easiest way to write your tax preparation business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any tax preparation business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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Tax Preparation Business

Back to All Business Ideas

How to Start a Tax Preparation Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: Mark Stewart

Mark Stewart is the in-house Certified Public Accountant, an accomplished author and financial media specialist.

Published on April 4, 2023 Updated on July 3, 2024

Investment range

$1,700 - $4,300

Revenue potential

$60,000 - $120,000 p.a.

Time to build

Profit potential

$54,000 - $108,000 p.a.

Industry trend

Americans dread tax season – and for good reason! Tax returns are terribly complicated, which is why many people turn to professionals. The US tax preparation industry is worth more than $14 billion and growing, so starting a tax prep business could be a wise move. 

You’ll need to be certified with the IRS if you’re not already, and you’ll also need some business savvy. Fortunately, this step-by-step guide provides all the entrepreneurial insight you’ll need to launch your tax preparation business and put it on the path to success.

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Step 1: Decide if the Business Is Right for You

Pros and cons.

• Good pay rate per return
• Large market of potential customers
• Help people with vexing tax troubles
• Somewhat seasonal
• Compete with software tools like Turbo Tax

Tax preparation industry trends

Industry size and growth.

• Industry size and past growth – The U.S. tax preparation industry is worth $14.4 billion in 2023 after growing 3.9% annually the last five years.(( https://www.ibisworld.com/industry-statistics/market-size/tax-preparation-services-united-states/ ))
• Growth forecast – The U.S. tax preparation industry is projected to grow .8% in 2023. 
• Number of businesses – In 2023, 146,788 tax preparation businesses are operating in the U.S.(( https://www.ibisworld.com/united-states/market-research-reports/tax-preparation-services-industry/#:~:text=Revenue%20for%20tax%20preparation%20service,%25%20of%20revenue…. ))
• Number of people employed – In 2023, the U.S. tax preparation services industry employs 296,703 people.(( https://www.ibisworld.com/united-states/market-research-reports/tax-preparation-services-industry/#:~:text=Revenue%20for%20tax%20preparation%20service,%25%20of%20revenue…. ))

Trends and challenges

• The increasing complexity of tax returns is driving demand for tax prep. 
• Tax planning is a new element of tax prep, adding a new revenue stream.
• Ever-changing tax laws mean tax preparers need to continue their education.
• The growing number of quality tax prep software tools mean more competition for tax prep professionals. 

Demand hotspots

• Most popular states – The most popular states for tax preparers are Rhode Island, Nevada, and Delaware (( https://www.zippia.com/tax-preparer-jobs/best-states/ ))
• Least popular states – The least popular states for tax preparers are South Carolina, South Dakota, and Kansas. 

What kind of people work in tax preparation?

• Gender – 72% of tax preparers are female, while 28% are male. (( https://www.zippia.com/tax-preparer-jobs/demographics/ ))
• Average level of education – The average tax preparer has a bachelor’s degree.
• Average age – The average tax preparer in the US is 47 years old.

How much does it cost to start a tax preparation business?

Startup costs for a tax preparation business range from $1,700 to $4,300. Costs include tax preparation software and the required education and certification. Visit the IRS website to learn how to get certified as a tax preparer.

You’ll need a couple of items to successfully launch your tax preparation business: 

• Professional tax preparation software

How much can you earn from a tax preparation business?

The average price for tax preparation is $300, but this varies based on how many forms and schedules need to be included. Your profit margin should be about 90%. 

In your first year or two, you could do 200 tax returns, bringing in $60,000 in revenue. This would mean $54,000 in profit, assuming that 90% margin. 

As you gain traction, you might double your sales and do 400 returns. With annual revenue of $120,000, you’d make a tidy profit of $108,000.

What barriers to entry are there?

There are a few barriers to entry for a tax prep business. Your biggest challenges will be:

• Getting your certification
• Competing with software tools and other tax professionals 

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Step 2: hone your idea.

Now that you know what’s involved in starting a tax preparation business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research could give you the upper hand even if you’ve got the perfect product. Conducting robust market research is crucial, as it will help you better understand your customers, your competitors, and the broader business landscape.

Analyze your competitors 

Research tax preparation businesses in your area to examine their services, price points, and customer reviews.

• Make a list of tax preparation businesses that offer similar products or services. 
• Review your competitors’ services – their features, pricing, and quality – and marketing strategies
• Check out their online reviews and ratings on Google, Yelp, and Facebook to get an idea of what their customers like and dislike.
• Identify your competitors’ strengths and weaknesses. 

This should identify areas where you can strengthen your business and gain a competitive edge to make better business decisions.

Why? Identify an opportunity

You’re looking for a market gap to fill. For instance, maybe the local market is missing a tax service that handles state and local returns as well as federal taxes.

You might consider targeting a niche, such as small business tax preparation.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your services

In addition to preparing federal tax returns, you could prepare state and local tax returns, as well as quarterly returns. You could also offer tax planning services.

How much should you charge for tax preparation?

The average price to prepare a tax return is $300 with additional costs for additional schedules and services. Your profit margin after marketing and software costs should be about 90%. 

Once you know your costs, use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be broad, so you should include Instagram and Facebook in your marketing strategy. If you’re going to do business tax returns, add LinkedIn to the mix. 

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Tax Preparation Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “tax preparation” or “tax services”, boosts SEO
• Name should allow for expansion, for ex: “Universal Tax Solutions” over “Deduction Destination”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

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Finally, make your choice among the names that pass this screening and go ahead and reserve your business name with your state, start the trademark registration process, and complete your domain registration and social media account creation. 

Your business name is one of the key differentiators that sets your business apart. Once you pick a name, reserve it and start with the branding, it’s hard to switch to a new name. So be sure to carefully consider your choice before moving forward. 

Step 4: Create a Tax Preparation Business Plan

Here are the key components of a business plan:

• Executive Summary: Provide a concise summary of your tax preparation business plan, including its objectives, target market, and competitive advantage.
• Business Overview: Describe your tax preparation business, its location, the range of tax services offered, and any specializations, such as individual or corporate tax preparation.
• Product and Services: Explain the specific tax services your business provides, such as tax filing, tax planning, audit support, or other related financial services.
• Market Analysis: Analyze the tax preparation market, including demand for tax services, seasonal trends, and the demographics of potential clients.
• Competitive Analysis: Identify competitors in the tax preparation industry and highlight what makes your business stand out in terms of expertise, pricing, or customer service.
• Sales and Marketing: Outline your strategies for attracting clients, including marketing channels, pricing structures, and networking efforts within the community.
• Management Team: Introduce key team members involved in your tax preparation business, emphasizing their qualifications and experience in tax-related fields.
• Operations Plan: Describe how your tax preparation business will operate, including the process of tax preparation, document management, and software/tools used.
• Financial Plan: Present financial projections, including startup costs, revenue forecasts, and profit margins for your tax preparation business, along with funding requirements.
• Appendix: Include any additional materials, such as sample tax forms, client testimonials, or certifications, to support your tax preparation business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to tax preparation businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your tax preparation business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company ( LLC ) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.  Here’s how to form an LLC .
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.  Read how to start a corporation here .
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like  Kickstarter  and  Indiegogo  offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like  Fundable  and  WeFunder  enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a tax preparation business. 

Step 8: Apply for Tax Preparation Business Licenses and Permits

Starting a tax preparation business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

Visit the IRS website to learn how to become a certified tax preparer. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your tax preparation business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to use industry-specific software, such as Karbon , or Canopy , to manage your work flows, clients, billing, and communication. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Create a website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

Your customers are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. 

Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Schedule Now”. This can sharply increase purchases. 

Here are some powerful marketing strategies for your future business:

• Partner with Local Businesses: Collaborate with local businesses like small retailers or real estate agencies to offer bundled services, providing their clients with tax preparation discounts.
• Host Educational Workshops: Conduct workshops on tax planning and changes in tax laws to position your business as a trusted source of expertise in the community.
• Referral Programs: Incentivize existing clients to refer your services by offering discounts or a small commission on successful referrals, turning satisfied clients into advocates.
• Social Media Advertising: Utilize targeted social media ads, focusing on platforms like Facebook and Instagram, to reach potential clients with tailored messages about your tax preparation services.
• Community Sponsorship: Sponsor local events, sports teams, or community programs to increase brand visibility and foster a positive image in the community.
• Loyalty Programs: Implement a loyalty program where clients receive discounts or exclusive benefits for returning to your tax preparation services year after year.
• Mobile Tax Services: Offer on-site or mobile tax preparation services, providing convenience to clients who may have difficulty visiting a physical office.
• SEO Optimization: Optimize your online content for search engines to ensure that your business appears prominently when individuals search for tax preparation services in your locality.
• Customer Testimonials: Showcase positive client testimonials on your marketing materials and online platforms to build trust and credibility with potential clients.
• Email Marketing Campaigns: Develop targeted email campaigns to keep clients informed about tax deadlines, policy changes, and exclusive offers throughout the year.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your tax preparation business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your tax preparation business could be:

• Taxes done fast and done right, guaranteed
• Tax planning to eliminate surprises
• Tax preparation with full audit support

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a tax preparation business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in tax preparation for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in tax preparation services. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a tax preparation business include:

• Tax Preparers – assist with clients
• General Manager – scheduling, accounting
• Receptionist – greet clients, take calls, make appointments

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Start Making Money!

If you’re among the few people who enjoy doing taxes, a tax prep business could be just the thing for you. You can help people deal with a major hassle and make good money at the same time. Maybe you’ll even growinto the next H&R Block!

You’ve got the business basics down now, so it’s time to get certified and prepare to become a tax preparation entrepreneur. 

• Tax Preparation Business FAQs

A tax preparation business can be very profitable. You can make $300 or more per return.

You’ll meet with clients to gather all their information and prepare their tax returns. You’ll also have to spend a little time marketing your business.

Tax preparation is a service business that falls in the category of Tax Preparation, Bookkeeping , and Payroll Services. The NAICS code is 541200. 

Tax preparation can be a good side hustle, particularly since it’s somewhat seasonal. You could work with people in the evenings and on weekends. 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Tax Preparation Business Name
• Create a Tax Preparation Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Tax Preparation Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Start Making Money!

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Tax Preparation Business Plan Template [Updated 2024]

Tax Preparation Business Plan Template

If you want to start a Tax Preparation business or expand your current Tax business, you need a business plan.

The following Tax Preparation business plan template gives you the key elements to include in a winning Tax Service business plan.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of a successful tax preparation service business plan. Once you create your plan, download it to PDF to show banks and investors.

Tax Preparation Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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How to Start a Tax Preparation Business

As the owner of a tax preparation business, you’ll have the responsibility of cutting through the fog of federal, state, and local tax preparation, filing returns, and often earning tax rebates for individuals and, perhaps, small businesses.

Learn how to start your own Tax Preparation Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a tax preparation business by following these 10 steps:

• Plan your Tax Preparation Business
• Form your Tax Preparation Business into a Legal Entity
• Register your Tax Preparation Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Tax Preparation Business
• Get the Necessary Permits & Licenses for your Tax Preparation Business
• Get Tax Preparation Business Insurance
• Define your Tax Preparation Business Brand
• Create your Tax Preparation Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your tax preparation business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Tax Preparation Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your tax preparation business?

Business name generator, what are the costs involved in opening a tax preparation business.

You can start your tax prep business relatively modestly, but there are some unavoidable costs to consider:

Office rent—zero to $1,500 or more. This is a business that you can run from your home, but you must consider if that would be a smart move. First check to make sure your neighborhood is zoned for seeing clients (hopefully a lot of them over the course of a few months) from your residence. Also keep in mind that a storefront office in a part of town with good traffic can act as a billboard and encourage walk-in trade. This might be especially important when you start out. As for the cost of office space, that can vary dramatically from region to region and even from one part of town to another. Look for space that has been empty for awhile and a landlord who might be motivated to get some cash flow to the building for a short lease period of perhaps only three or four months rather than watch the space sit idle.

Business cards, logo and signage—$1,000 or less. If you’re operating out of your home, signage might not even be allowed. But anytime you are able to hang a sign, it will serve as a free billboard and encourage impulse walk-ins. Your logo and business cards can be designed inexpensively if you find a talented graphic design student trying to build a portfolio.

Office equipment and automation—$2,000, est. or more. Even if you’re working out of your home, you want your business to look as professional as possible. That means you should have an office desk and a comforable chair for yourself and as many as two for clients. You’ll also need at least one laptop and printer, or a computer for every employee.

Tax preparation software—$400-$500. There are various vendors depending on your needs.

Legal, licensure and insurance—2,000 est. You must first pass a 60-hour tax prep training course that can cost in the $500-$600 range, depending on where it’s taken. There are additional costs from the IRS and for liability insurance. Furthermore, a few states require additional regulatory adherence.  Visit here for an explanation of some of the training costs and requirements .

Employee costs—Vary. Some of the leading competitors pay individual tax preparers as little as $10 an hour. Others pay a commission of perhaps 20 percent of the fees generated. You’ll also be responsible for tax withholdings and your FICA and Medicare contribution for each hire.

What are the ongoing expenses for a tax preparation business?

If you have a temporary storefront, rent and utilities will be among your largest fixed costs. Temporary employees will also cost you either an hourly rate or a percentage of the business they handle. Other costs might include advertising if you’re looking for a sudden uptick in business.

Who is the target market?

Who will your typical clients be? You might mostly see lower-income earners filing to receive their earned income tax credit. Or more complicated cases from the self-employed or smaller businesses. Or the middle class, who aim to take advantage of various tax credits. Making this decision will help you determine where you might open a storefront, how and where you might market your business and what specific skills you must master.

How does a tax preparation business make money?

You’ll charge a fee for your services, based on the complexity and time involvement of the filing.

According to a National Society of Accountants survey  released in 2017, the average fee charged by tax preparers for an individual itemized 1040 return with a Schedule A form and state tax return was $273. For small business clients, the average charge was $457.

How much profit can a tax preparation business make?

Error-free speed is of the essence. With a statistic mentioned earlier of the average itemized individual return generating $273 in fees, one of these per hour is possible. However, especially as you start your business and before you attract a significant client base, you’ll face unprofitable downtime.

How can you make your business more profitable?

Some accountants or CPAs offer tax prep as one of a range of accounting services. This business is also compatible with financial services, real estate brokerages, insurance and other fields where the business owner is comfortable discussing financial issues with clients. Also keep in mind that if your client base significantly consists of private contractors and small business owners, they might have additional tax issues throughout the year.

And finally, consider conducting tax prep training classes as a complementary service. You could conduct such a class through  The Income Tax School .

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your tax preparation business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a tax preparation business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Certificate of Occupancy

A tax preparation business can be run out of an office. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location :
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a tax preparation business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
• If you plan to purchase or build a location :
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your tax preparation business will be in compliance and able to obtain a CO.

Services Contract

Tax preparation businesses should require clients to sign a services agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership. Here is an example of one such services agreement.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Tax Preparation Business needs and how much it will cost you by reading our guide Business Insurance for Tax Preparation Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a tax preparation business

As mentioned, your storefront might be your most effective marketing tool if opened within sight of your market audience. Also use social media, including LinkedIn and a Facebook group, to spread the word and communicate with your clients. Your marketing efforts might also go as low-tech and “old school” as handing out fliers to passersby and asking to post fliers or business cards in area businesses.

How to keep customers coming back

Excellent customer service—and satisfactory tax returns—will earn you repeat business through the years. These loyal clients are also likely to recommend you to friends, family or business associates.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

If you are a well-organized, people-oriented person who’s taken professional courses to learn the tax preparation business and are at ease with automation and digital software, you could thrive at this largely seasonal business. You should be able to handle long and probably stressful hours in a contained season of intense activity from January through mid-April. After that, you’ll have plenty of time to recover!

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a tax preparation business?

Think of your business as falling into two periods—tax season and pre-season—with very different areas of responsibility for each. During tax season, you’ll primarily see clients and prepare and file their taxes. Your goal is to do almost nothing but handle your clients since the tax-filing season is bound by the deadline dictates of the Internal Revenue Service and other taxing agencies.

Off-season, your responsibilities are more diverse. Your pre-season day will probably include some or all of the following activities.

• Interviewing and hiring temporary tax-prep employees, if you have a customer base that justifies seasonal help
• Seeking temporary storefront offices if you plan on working from such a public space rather than from your home
• Ordering and mastering your tax preparation software since software glitches or usage confusion during filing season can result in customer fee losses in the hundreds or thousands of dollars
• Conducting marketing and social media strategies to atttract customers

What are some skills and experiences that will help you build a successful tax preparation business?

In the beginning, your sales and marketing skills will be critical. That’s because you have a narrow window of opportunity for attracting business and plenty of name-brand competition (H&R Block, Jackson Hewitt, TurboTax, etc.). You must also have the patience to prepare for your business success by taking the 60-hour tax course you’ll need for certification and applying for efiling licensure from the IRS.

Once you’re in business, you’ll have to be able to work fast, efficiently and accurately to see as many clients and submit as many tax filings as you can over your limited calendar time. You must also be able to make your clients feel at ease regarding such topics as income, debt, taxes and penalties.

What is the growth potential for a tax preparation business?

The U.S. tax code contains 73,000 pages. Eighty-two million individuals file annually and the complexity of the process discourages most people from preparing their own taxes. While politicians from both parties promise simplification of the tax code, the reality is that the process only grows more complex. That means you can always feel confident of a customer base eager for your help.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a tax preparation business?

Start slow. In fact, before going on your own you might consider working for a season for one of the large competitors. This is a good way to sharpen your skills at using the software, confronting a variety of taxation challenges and working productively. You might also keep your day job and take on a few clients on nights or weekends at first. If you meet their needs they’re likely to be back for years to come—and be powerful word-of-mouth recruitment tools.

How and when to build a team

You look forward to the day when you’re so busy you need additional help. Remember, you don’t want to turn any client away because you don’t have time for them or you could lose them to a competitor forever. Before that happens, start to post for help on job boards. But be sure you state the requirement that applicants must have passed the 60-hour training course (or additional training if they’re to take on business tax clients).

Useful Links

Industry opportunities.

• National Association of Tax Professionals
• Jackson Hewitt (franchise opportunity)

Real World Examples

• Ann Arbor CPA

Further Reading

• What you need to start this business
• Tips for starting this business

Have a Question? Leave a Comment!

Tax Preparation Business Plan Template & Guidebook

How to write a tax preparation business plan in 7 steps:, 1. describe the purpose of your tax preparation business., 2. products & services offered by your tax preparation business., 3. build a creative marketing stratgey., target market, customer base , product or service description, competitive analysis, marketing channels, form an llc in your state, 4. write your operational plan., what equipment, supplies, or permits are needed to run a tax preparation business, 5. management & organization of your tax preparation business., 6. tax preparation business startup expenses & captial needed., 7. financial plan & projections, frequently asked questions about tax preparation business plans:, why do you need a business plan for a tax preparation business, who should you ask for help with your tax preparation business plan, can you write a tax preparation business plan yourself, related business plans, home inventory business plan template & guidebook, home inspection business plan template & guidebook, home decor business plan template & guidebook, health and wellness business plan template & guidebook, hauling business plan template & guidebook, hardware business plan template & guidebook, handyman business plan template & guidebook, hair extension business plan template & guidebook, handbag business plan template & guidebook.

I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

How to Start a Tax Preparation Business in 2022

Do you want to start your own tax preparation business? Here are five basic steps and simple strategies you’ll need to launch your new venture.

Webinar Series

If you have training, skills, and a wealth of tax expertise, you may have considered branching off into self-employment. This can be a natural next step for accounting or tax professionals who want to explore entrepreneurship or develop their own list of clientele.

With today’s remote work capabilities, starting a tax preparation business can happen in a variety of ways. While  “brick and mortar” or in-person options are still feasible, many tax experts take the online route to provide virtual services to new clients and customers. No matter how you approach it, starting a new small business always requires careful thought, consideration, and planning.

In this post, we’ll describe what a tax preparation business is, why you might want to start your own, and the steps to follow to generate a successful launch.

What is a Tax Preparation Business? 

A tax preparation business is any service or business that offers tax filing and tax return support to other individuals or businesses. Tax preparers usually file state and federal taxes on behalf of their clients. This requires access to in-depth financial information, profit and loss statements, income totals, and other personal data.

In today's market, many tax service providers electronically file tax returns. This process involves an in-depth and ongoing knowledge of current tax law and awareness of relevant trends in the tax industry.

Who Can Own a New Tax Business?

In the United States, a tax professional who wants to own and operate their own tax prep business must have a Preparer Tax Identification Number (PTIN), secured through the Internal Revenue Service (IRS). A preparer tax identification number certifies that the individual is qualified to provide tax prep services and submit documents on behalf of other filers. 

Even though all tax preparers must have a PTIN in order to operate lawfully, the level of skill or specialization between providers may differ. For instance, some tax preparation businesses specialize in business taxes, while others cater to individuals and family households. 

Initial Steps to Starting Your Own Tax Preparation Business

No matter what kind of small business you plan to start, establishing a strong foundation is the key to future and long-term success. This requires careful planning and preparation so that you are not only in alignment with your skills and strengths, but so you’re also on proper footing from a legal standpoint as well. 

Here’s a simplified look at the steps you must take in order to plan, launch, and grow your tax preparation services.

Step 1: Verify Your PTIN and Credentials

If you’ve worked as a federal tax preparer under another firm or agency, you may need to complete any additional steps here. But if you’re just starting out under your own umbrella, be sure that your PTIN and other federal requirements are in order before tax season. 

Although the IRS doesn’t mandate additional training for tax preparers (such as income tax school), you should brush up on any skills or tools that would help you be more effective in your particular role or that could help you prepare tax returns in the current tax season. This includes looking into new tax laws, codes, or requirements that may affect your future and current customers.

While you may not need to display (either physically or virtually) your own tax business training and credentials, be mindful that some clients may ask prior to working with you.

Step 2: Create a Sustainable Business Plan

Before you start a tax preparation business, you need to outline a process, plan of action, or business model. Business plans usually consist of official summaries for how a business expects to start, operate, and generate profit over time.

For your tax prep service, a business plan may include information related to the following “big ticket” items that should be in place before you sign clients.

• Applicable startup costs (including rent, if operating form a physical office space)
• Office equipment 
• Ongoing expenses related to daily or long-term operation
• Plan for acquiring potential customers
• Plan for revenue and profit over time
• Strategy for hiring help, employees, and other HR-related details

While there’s no right or wrong answer to many of these questions, having them solidified can ease the stress of knowing what steps are next. Moreover, if you ever want to secure a business loan or other financing to grow, you’ll need to have a plan fully documented.

Step 3: File the Proper Business Documentation

In order to do business legally, most states require tax preparers to submit documentation before you can practice or collect payment from customers. This could be as simple as securing a business license from your state or municipality, or you may need to go a step further and file as a Limited Liability Company (LLC).

There are some fees associated with these processes, but most are simple startup costs that you will only pay for one time. In other localities, you may need to officially file federally in order to obtain an EIN, which is your Employer Identification Number from the IRS.

Business licensure is one part of the process, but don’t overlook other important steps like business insurance or securing a business bank account. These additional steps can protect you on a personal level (including guarding your personal assets), regardless of what happens with your business tax returns. 

Step 4: Choose the Best Tools and Systems

Once you have the nuts and bolts in place, it’s time to get creative! Here’s where you can choose the software, tools, and processes that will help your tax preparation business structure run like a well-oiled machine. 

Some tools that can be helpful when starting any new business include:

• Secure cloud storage (for secure documents and file sharing)
• Workspace tools, such as email or shared calendars
• Accounting or bookkeeping software
• Tax preparation software
• Marketing and customer-facing platforms
• Business website 
• Social media accounts

When choosing the tools and software that you’ll use for your tax preparation business, be sure to consider cost, functionality, and return on investment. While you want to maximize ROI, each tool you select should be user-friendly, fully supported, and able to scale.

Step 5: Launch Your Marketing Efforts

Once you’ve done the prep work behind the scenes, you’ll need to start moving forward on customer acquisition. The baseline for this should always come from a well-rounded and well-researched position on your target audience—who you want and are able to help.

Then, you’ll need to consider the types of marketing strategies or programs that you’re most interested in implementing out of the gate. Whether that includes email or content marketing, direct referrals, paid ads, or social media campaigns, have an idea of how and where you want to invest both time and money. 

Marketing strategies should be specific to all parts of the marketing funnel, from top to bottom. This includes the awareness stage, where you’re educating about your brand, down the decision stage where clients are ready to collaborate.

How to Set Your Tax Prep Business Up for Success

Some of the most important things you’ll do for your tax prep business will take place on a non-public level. In other words, while clients may not see these efforts directly, they will benefit from the results. This includes investing in your growth as a business owner, providing adequate training to tax professionals on your team, and choosing the marketing channels that make the most sense.

Here are a few extra tips for setting your tax preparation business up for a successful future.

• Register for the Annual Filing Season Program. This is offered by the IRS and provides additional training for tax preparers. Since there are a lot of updates to the U.S. tax code, staying up-to-date on the most recent changes can give you the edge you need to do your job well.
• Invest in the best employee onboarding. If your tax preparation business has other partners, staff members, or volunteers, make sure that these individuals are ready to do their jobs efficiently. While this doesn’t mean micromanaging, it does mean giving them the tools and support they need to provide the best service to clients.
• Set goals, then analyze data and metrics. Have a long-term vision for where you want to see your business. What does that look like in terms of the number of new clients, amount of revenue, or size of your team? Set specific and achievable goals, and then evaluate them at set intervals based on the data available to you. 

Invest in the Right Business and Marketing Software

With the sheer number of moving pieces you have in your tax preparation business, you may be hard-pressed to find extra time for collecting prospects and following up with those in your marketing funnel. This is a common problem, particularly for small business owners who are just establishing their new business.

The solution is simple—choosing an automated, yet personalized platform to do some of the heavy lifting for you. A marketing automation tool like CountingWorks PRO is designed for accounting and tax professionals. Since it’s specific to the financial industry, you’ll have an easy time targeting and reaching out to potential clients who are a great fit. 

The CountingWorks PRO platform is one example of a marketing software that helps you conquer the complete customer lifecycle. This includes making a first impression with a great website, nurturing the client relationship through emails, and retaining customers with user-friendly features that boost communication and visibility.

Build Your Own Tax Business with Help from CountingWorks

If you’re considering launching your tax preparation business, it’s a great time to begin! With the right planning, preparation, and knowledge, you can build a profitable financial services business that creates flexibility for you and superior service for your clients.

No matter what your goals are, CountingWorks PRO can help you get there.

Interested in learning more? Book a demo with our experts. Start a free trial.

Practice Marketing

April 29, 2024.

As the founder and CEO of CountingWorks, Inc, Lee is passionate about helping independent tax and accounting professionals compete in the modern age. From time-saving digital onboarding tools, world-class websites, and outbound marketing campaigns, Lee has been developing best-in-class marketing solutions for over twenty years.

As the founder and CEO of CountingWorks, Inc, Lee is passionate about helping independent tax and accounting professionals compete in the modern age. From time-saving digital onboarding tools, world-class websites, and outbound marketing campaigns, lee has been developing best-in-class marketing solutions for over twenty years.

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The Comprehensive Tax Guide for Starting a Tax Preparation Business – Ultimate Tax

Sep 15, 2022

Individual tax preparers who want to start their own tax preparation businesses should read this guide.

You may be passionate about providing your clients with the best possible tax outcome, but starting your own tax business can be intimidating. This guide will walk you through the steps required to start a tax preparation business and will assist you in navigating the process.

Let’s get started.

Table of Contents

Step-by-Step Instructions for Starting a Tax Preparation Business

Aside from registration and licensing, starting a tax preparation business entails a number of steps. The following are the first nine steps to starting a tax preparation business:

Create a Tax Preparation Business Plan.

The most crucial step in starting a tax preparation business. A well-planned strategy will aid in outlining the specifics of the business. It will also assist you in preparing for the unknown. Keep the following in mind when creating a tax preparation business plan:

• Your initial and ongoing costs
• What is your mental image of your ideal customer?
• What will you charge your clients?
• How do you intend to boost the company’s profitability?

Create a Legal Entity for the Company.

After creating a business plan, you must decide on your company’s legal structure. A partnership, sole proprietorship, limited liability company (LLC), or corporation can be formed.

Become a member of the Internal Revenue Service.

Before you begin operations, you must register your tax preparation business for multiple state and federal taxes. To proceed, you must first obtain an EIN (or the Federal Tax Identification Number). This number is available through the IRS website or by mail. Your business will be taxed depending on the legal entity you choose.

Establish a Business Bank Account.

Maintain a separate bank account for your business at all times. This is critical for the security of your assets. A separate bank account also makes tax preparation and accounting easier.

Create an Accounting System for Your Company.

If you want a better understanding of your company’s financial performance, you must track your income and expenses. Having a comprehensive accounting system in place simplifies tax filing every year.

Obtain All Required Licenses and Permits

You must first obtain the necessary licenses and permits, such as a state license, a certificate of occupancy, and a service contract before you can start your tax preparation business. If you do not comply, you may face steep fines and the closure of your business.

Get Commercial Insurance.

In addition to permits and licenses, you should ensure that your business is legal and safe to operate. This is also advantageous for safeguarding your company’s financial health.

Create a Website for Your Tax Preparation Company.

You can create a website for your organization after completing the preceding steps. A website can help your company establish credibility and attract new customers.

Select a Tax Preparation Software Package.

After you’ve addressed the fundamentals, think about ways to improve the efficacy and efficiency of your business operations. In this case, tax preparation software such as Ultimate Tax can be useful. This can help you grow your business and streamline your operations.

Last Thoughts

We’ve now covered every aspect of starting a tax preparation business. This information should assist you in navigating the process of starting a new business. If you have the necessary resources (tax software for tax professionals ), entrepreneurial drive, and spirit, you will be able to launch your tax preparation business quickly.

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Business Tax

Our Business Tax Services Team is dedicated to providing companies with the highest quality corporate tax preparation, planning, and consulting services and to helping reduce business tax liability.

Holistic Business Tax Preparation Services

Reduce your tax liability by developing cost-effective corporate tax planning strategies.

For over 40 years, our business tax advisors have been providing business tax consulting and preparation services to companies both large and small. As a nationally recognized Top 25 tax services firm, we have ample experience with business tax planning, preparation, and compliance issues. Our tax specialists have a comprehensive understanding of international , federal, state and local tax regulations – and as an independent member of HLB, a Global Advisory and Accounting Networking, we can assist in developing cost-effective business tax strategies for organizations around the globe.

As part of our Business Tax Services, we put together a custom corporate tax planning strategy and address any related tax issues prior to year-end. We’ll also review the most recent tax law changes and interpretations in order to maximize tax savings opportunities and reduce tax liability. With an effective business tax preparation plan, companies have greater assurance of:

• Realizing substantial cost savings
• Limiting future interest and penalty payments
• Achieving desired tax results
• Reducing the likelihood of an IRS audit

Our Suite of Business Tax Services

The Withum business tax advisors are well-versed in the full spectrum of business tax services. They can assist in developing business tax planning strategies around the following areas:

Year-End Tax Planning Services

We offer a wide variety of business year-end tax planning services to help organizations stay compliant and take advantage of the latest money-saving opportunities. We’ve also created a  Year-End Tax Planning Resource Center  that acts as an on-demand one-stop-shop for corporate tax preparation tips.

International Tax Compliance Services

Businesses that operate internationally faces the unique challenge of having the stay compliant with multiple countries’ tax rules and regulations. Our international tax advisors  work with organizations to maintain tax transparency, remediate cross-border tax disputes, minimize the risk of double-taxation and achieve maximum savings through international tax incentives.

Business Tax Controversy Services

For organizations facing corporate  tax controversy  issues, our tax consultants are well-equipped to handle various issue resolutions, dispute avoidance, and more. We’ll put together a plan that describes the particular controversy, outlines a custom resolution, and establishes measures to prevent the issues from reoccurring.

Corporate Tax Accounting Services

The constantly evolving nature of national and international tax laws – and the increased scrutiny surrounding them – can make corporate income tax accounting complicated. Our tax accounting services cover stock-based compensation, tax validation projects,  valuation assessments , statement and balance sheet support, tax position consulting, and more. They also include ASC 740 consulting, preparation, remediation, internal controls assistance, transaction services, provision assistance, and training.

U.S. Tax Reform Services

Depending on the organization, tax reform laws can cause unforeseen complications, or provide promising opportunities. Withum’s business tax advisors help businesses navigate the changing waters of U.S. tax reform. Our business tax services include the creation of corporate tax planning strategies built upon the insights gained from analysis and modeling tools. We work with organizations to predict and analyze tax reform impacts and outline the options that make sense for them. For more information, check out our  Tax Reform Resource Center .

Pass-Through Tax Services

With partnerships offering the most flexibility out of any tax structure and S corporations having the most strict rules, knowledge and experience are key to businesses that operate in these structures. Our team of seasoned experts can help your business navigate the pass-through tax waters and put you in a position to succeed.

Find Out How the IRS Would Classify Your Workers

By answering a series of questions through this online questionnaire, companies can gain insights into how the IRS would classify their workers, thereby avoiding costly employment tax disputes with the government.

Why Choose Withum as Your Business Tax Team?

For more than 40 years, our team of business tax consultants have helped for-profit and nonprofit organizations with all their tax needs. Our holistic approach goes beyond simple tax preparation and includes everything from tax controversy to compliance.

For more information or to discuss your business needs, please connect with a member of our team.

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TAX PREPARATION BUSINESS

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7 planning considerations for this fiscal year

If you’re the person who’s always helping family and friends prepare their taxes, it might be time to start your own business. After all, tax preparation is in demand every year, and you’ve found that you have a facility for finding solutions and helping people navigate the tax-code maze. Plus, the IRS’ stricter requirements for credentialing and continuing education create opportunities, as the casual tax preparers drop out and leave the field to entrepreneurs with dedication and drive. 

The first step is nailing down your business plan. This step-by-step guide shows you how easy and rewarding it is to get credentialed, write your plan and launch your business on the road to success. 

7 keys to creating a business plan for tax prep service 

Maybe you’d rather dive into your enterprise without a business plan, but research says that businesses with a plan grow more quickly and are likelier to succeed than those without one. Fortunately, your business plan doesn’t have to be long and complicated. Even a lean one-pager can launch your business with a direction and destination in mind. In fact, research also shows that simpler plans are updated more often and are easier to review.  

Effective business plans discipline you to set regular goals, track your progress and adapt as you learn more about your customers.  

Follow these seven keys to writing a business plan, and your tax practice will take wing.

Proper training and continuing education 

People trust their tax preparers with the solemn responsibility of helping them navigate the tax-code maze. That’s where proper training and continuing education enter the picture. Consider these two credentials that project professionalism and expertise: 

• Enrolled Agent (EA): The enrolled agent is the IRS’ highest credential for tax preparers. The EA confers unlimited practice rights, giving you the power to represent your client before the IRS, everywhere in the U.S. As an EA, you become an indispensable adviser with higher earning power as clients seek out your help year-round. The credentialing process includes an IRS exam, so if you decide to become an EA , Surgent Income Tax School can set you up for success. After you’ve taken a few tax courses and think it’s time to rise to the next level, consider registering for the Surgent EA Review course . It’s the fast track to becoming an enrolled agent, from an industry leader in EA Exam preparation.  
• Certified Public Accountant (CPA): The Certified Public Accountant process is rigorous, but attainment proves your mastery of tax matters for a wide range of clients. 

Continuing education is a mainstay in credentialing and professionalism because the tax code is complex and ever-changing. Surgent Income Tax School offers a variety of highly relevant CE courses to help you stay compliant on tax law changes and up-to-date with trends in tax preparation. 

Marketing strategies for your tax prep business 

Building a social media presence establishes your brand, differentiates your services, builds engagement and loyalty, and attracts new clients.  

But remember that social media demands a constant stream of content. Map out a weekly or monthly social media schedule, and consider these ideas for keeping it fresh: 

• Blogs: Establish yourself as a tax-preparation expert by offering advice, answering frequently asked questions or sharing your take on current events. 
• Infographics: Visuals get attention, and with a Canva account, you don’t need to be a graphic artist to explain taxation issues in pictorial form. 
• Memes: Show your sense of humor by sharing relevant memes or making your own.   
• Videos: Videos drive engagement. Keep them under 60 seconds, and add text in case the viewer turns off the sound. 
• Q&As: Show your expertise and offer value to potential clients. 
• Promotional material: Go easy on self-promotion, but occasionally share client testimonials, descriptions of your services and any deals or specials you might be offering. 
• Polls: Everyone likes to share their opinions. Create quick polls with questions related to preparing taxes. 

Provide excellent customer service 

In a competitive field, how do you stand out from the crowd? Customer service is the key to differentiation. These techniques build loyalty and attract new clients: 

• Be a good listener: Find out what’s important to your clients. 
• Be a clear communicator : Make it clear from the outset what you will deliver and what you expect from your client.  
• Give more than expected: Value-add means offering a little extra, even if it’s preparing your client’s teenage child’s 1040EZ for free. Or share a special treat, such as gourmet coffee or cookies on the table.  
• Treat your employees and clients well : Thank your employees, share fun excursions or office perks (chair massages are always welcome) and provide the training and equipment they need to do their jobs. When they’re happy in their work, they will be pleasant and helpful with your clients. While you’re at it, thank your clients, too. Make sure they have everything they need to make tax time easier. 
• Ask for feedback: In person or by survey, find out what clients think of your services and manners. Be open to constructive criticism, and show that you’re listening by crafting solutions.  
• Provide year-round attention : Keep in touch, and top of mind, with monthly email updates. Share tax tips, office news and even personal notes on your life and family. Let your clients get to know you, and they’ll be more comfortable sharing their personal information with you at tax time.  

Manage your time

Tax time is insanely busy, but it’s also the most critical time for paying attention to detail. Stay focused and productive with these tips: 

• Create multiple lists : Create that daily list of the things to finish each day but get more done by complementing it with separate lists devoted to projects, monthly and annual goals, and personal goals. Put your dream accomplishments on a bucket list, and think about how to move them toward your goals lists. 
• Prioritize your lists: When you tackle your easy tasks first, you don’t accomplish much of significance. Instead, try Brian Tracy’s classic “Eat That Frog” approach. Tackle the most productive item, even if it’s the ugliest frog on the list, and things will start to happen. 
• Make time to get work done: Create “do not disturb” time and stop checking emails constantly. Instead, schedule times for checking email at regular intervals. 
• Re-evaluate your lists: Review regularly and ask if delegating the simpler tasks frees your time for more lucrative pursuits.  

Make sure you get paid

When you think about launching your business, it’s possible that you didn’t think much about the crucial matter of getting paid. You might even dread the idea of chasing after clients with unpaid invoices. Developing a strategy upfront helps you avoid the aggravation and get paid more quickly, so try these tips: 

• Put due dates prominently on invoices. Terms like “net 14 days” get less attention than actual dates. 
• Include the invoice with the tax return. 
• Ask for payment up-front or a 50% deposit when you meet clients and collect documents. 
• Accept credit cards or use electronic payment exchanges. 
• Send overdue accounts a red invoice. Often, bills go unpaid because the recipient is distracted or didn’t get around to it. Red gets their attention.  
• Offer a payment plan. For clients with complex tax returns, a payment plan can help them stretch out their budgets. 

Diversify your tax prep services

Fill your business plan with a slate of diverse services and you muscle up your year-round earning power. Consider these possibilities: 

• Business tax preparation and consulting : As you pursue continuing education and earn your EA credential, you learn more about preparing business returns. Put that knowledge to good use by marketing your business capabilities. 
• Payroll tax filings: Let your small-business clients know that you can take payroll tax filings off their hands. 
• Tax representation: When your clients have business to conduct with the IRS, you can be at their side if you’re an enrolled agent. 
• Tax planning services: Think back to your tax-time clients who made choices that cost them on their tax returns. Offer consultation on planning that minimizes their tax liabilities next year.  
• Financial services: While preparing taxes, you report on your clients’ IRAs, 401(k)s and other investment vehicles. Expand your pool of year-round clients by helping them manage, protect and maximize their investments. 

Sample business plan for tax preparation service 

Now that we’ve covered the essentials of starting and growing a business , it’s time to corral them into a business plan. For a comprehensive plan, include these elements: 

• Executive summary: A good executive summary puts the key points of your plan in bullet points. Write it after the rest of the plan is complete, and you’ll have a quick reference you can check frequently for review and updates. 
• Products and services: Describe exactly what you will offer your clients. There is tax preparation for individuals, of course, but you can also offer bookkeeping, bank products that streamline how clients get their refunds, and tax prep for sole proprietors and freelancers. 
• Market analysis: Draw a picture of the business landscape, identifying target customers and their needs, fees that clients typically pay, the competition, the regulations and requirements you face as the cost of doing business. Scrutinizing the specialties of potential competitors can reveal voids that you can fill – perhaps offering tax preparation for gig workers out there delivering restaurant meals or shared rides. 
• Execution: This is where you detail your market plan, customer acquisition strategy, necessary equipment, location and timeline for important events and target dates. The timeline makes it more likely that you’ll reach your goals. 
• Financial plan: Numbers matter. Here’s where you detail start-up and operational costs, your fees, the number of clients you’ll need to make a profit and projected profits for the first year. 

Put your business plan for tax prep service into action 

Think about the things that go more smoothly with a plan in place. Vacations. Business trips. The daily rush of family life. A plan helps ensure your satisfaction and productivity, and that’s true for launching a business. Even if you’ve been preparing tax returns for several years, you’ll find that stepping back and gathering your goals into one document provides focus and direction.  

The highly relevant courses from Surgent Income Tax School equip you with the latest knowledge in tax preparation. Add a credential such as the enrolled agent, and you establish yourself as a capable, recognized professional. Take these steps to attract new clients and add value for existing clients, and your business will grow according to plan. Check out our website for a list of continuing education courses that can take your tax prep business to the next level. 

More From Forbes

How To Start A Business Plan: A Step-By-Step Guide

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Creating a business plan is a critical first step for any entrepreneur. Knowing how to start a business plan will help you create a roadmap, guiding your business from startup to growth and beyond. Whether you're looking for investment, trying to set clear goals, or simply organizing your thoughts, a solid business plan can make all the difference.

Here is a guide to help you get started on your business plan:

1. executive summary.

What It Is: This section summarizes your business plan as a whole and outlines your company profile and goals.

What to Include:

• Business name and location
• Products or services offered
• Mission statement
• The purpose of the plan (e.g., seeking funding, guiding the startup process)

Tip: Keep it concise. Although it's the first section, it's often best to write it last, after you’ve detailed everything else.

2. Company Description

What It Is: This section provides detailed information about your company, including who you are, what you do, and what markets you serve.

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• Your business structure (e.g., sole proprietorship, LLC, corporation)
• The industry and marketplace needs your business meets
• Your business’s objectives and how you stand out from competitors

Tip: Use this section to highlight your company’s strengths and what makes you unique.

3. Market Research

What It Is: Market research demonstrates your understanding of the industry and target market.

• Market size and growth potential
• Target customer demographics
• Market trends and outlook
• Competitive analysis, including strengths and weaknesses of competitors

Tip: Include data and statistics to back up your findings and show that you’ve done your homework.

4. Organization and Management

What It Is: This section outlines your business’s organizational structure and management team.

• Organizational chart
• Information about the ownership of the company
• Backgrounds and qualifications of the management team
• Roles and responsibilities within the company

Tip: Highlight the skills and experiences of your team that will help the business succeed.

5. Products or Services Line

What It Is: Here, you detail the products or services you offer or plan to offer.

• A description of each product or service
• The lifecycle of products or services
• Research and development activities, if applicable
• Intellectual property, such as patents or trademarks

Tip: Focus on the benefits your products or services bring to your customers.

6. Marketing and Sales Strategy

What It Is: This section explains how you will attract and retain customers.

• Marketing strategies, including advertising, promotions, and public relations
• Sales strategies, including sales processes, channels, and tactics
• Pricing strategy and how it compares to competitors

Tip: Ensure your marketing and sales strategies are aligned with your market research findings.

7. Funding Request

What It Is: If you’re seeking funding , this section outlines your requirements.

• Your current funding needs
• Future funding requirements over the next five years
• How you intend to use the funds
• Potential future financial plans (e.g., selling the business, repaying debt)

Tip: Be specific and realistic about how much funding you need and how it will be used.

8. Financial Projections

What It Is: Financial projections provide a forecast of your business’s financial future.

• Income statements
• Cash flow statements
• Balance sheets
• Break-even analysis

Tip: Use realistic and conservative estimates. Consider hiring a financial professional to help with this section if needed.

9. Appendix

What It Is: The appendix includes any additional information that supports your business plan.

• Resumes of key management team members
• Permits and leases
• Legal documents
• Detailed market research data
• Product photos

Tip: Only include essential information that adds value to your business plan.

Final Tips for Creating a Business Plan

Creating a business plan requires clarity and precision. First and foremost, keep your business plan clear and concise. Avoid using jargon or complex language that could make the plan difficult to read or understand. Your aim should be to communicate your ideas effectively and efficiently.

Next, be realistic in your approach. Ensure that your goals and financial projections are attainable based on your research and understanding of the market. Overly ambitious projections can undermine your credibility and potentially lead to unrealistic expectations.

It's also essential to remember that a business plan is a dynamic document. As your business grows and market conditions change, you should revisit and revise your plan regularly. This helps you stay aligned with your goals and adapt to new challenges and opportunities.

Finally, seek feedback from experienced business professionals. Having someone with business experience review your plan can provide valuable insights and help identify any potential issues or areas for improvement. Their feedback can enhance the overall quality and effectiveness of your business plan.

By following these tips, you'll be better equipped to create a robust and effective business plan that can guide your business towards success.

The bottom line is that starting a business plan may seem challenging, but with careful planning and attention to detail, you can create a comprehensive guide to steer your business toward success. Use this step-by-step guide to ensure that all essential components are covered, giving your business the best possible start.

Melissa Houston, CPA is the author of Cash Confident: An Entrepreneur’s Guide to Creating a Profitable Business and the founder of She Means Profit . As a Business Strategist for small business owners, Melissa helps women making mid-career shifts, to launch their dream businesses, and I also guide established business owners to grow their businesses to more profitably.

The opinions expressed in this article are not intended to replace any professional or expert accounting and/or tax advice whatsoever.

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Moscow, ID is a vibrant city located in the Palouse region of Idaho. It is home to several notable landmarks, including the University of Idaho, the Appaloosa Museum and Heritage Center, and the Moscow Farmers Market. The University of Idaho is the city's largest employer, followed by Gritman Medical Center and Schweitzer Engineering Laboratories. Major highways in the area include US-95 and ID-8, while notable streets include Main Street and Jackson Street. Moscow is divided into several distinct neighborhoods, including the Tree Streets, Fort Russell, and the Eastside. With its rich history, diverse culture, and stunning natural beauty, Moscow, ID is a must-visit destination for anyone looking to experience the best of the Pacific Northwest.

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Financial services related to tax planning in moscow, id, banks and credit unions, insurance broker, retirement planning, wealth management, financial advisor, mortgage loan officer, estate planning lawyer.

FREQUENTLY ASKED QUESTIONS

Income Tax Preparation FAQs

What are some types of tax services.

In Moscow, ID, there are a variety of tax services available to individuals and businesses alike. From tax preparation to tax planning, Moscow's tax professionals offer a range of services to meet the needs of their clients. One unique aspect of Moscow's tax landscape is the prevalence of tax services specifically tailored to the needs of the agricultural community. With the region's rich history of farming and ranching, many tax professionals in Moscow have developed expertise in navigating the complex tax laws that impact agricultural businesses. Whether you're a farmer, small business owner, or individual taxpayer, Moscow's tax professionals have the knowledge and experience to help you navigate the intricacies of the tax code and ensure that you're in compliance with all applicable laws and regulations.

What can I expect from a tax services provider?

Hiring a tax services provider in Moscow, ID can offer several advantages to residents. Firstly, Moscow, ID is home to a diverse range of industries, including education, healthcare, and agriculture. This means that individuals and businesses may have unique tax requirements that require the expertise of a professional tax services provider. Additionally, the tax laws and regulations in Idaho can be complex and ever-changing, making it difficult for individuals to stay up-to-date on the latest requirements. A tax services provider can help ensure that residents are complying with all necessary regulations and taking advantage of all available deductions and credits. Furthermore, a tax services provider can save residents time and stress by handling all tax-related tasks, allowing them to focus on their personal and professional endeavors. Overall, hiring a tax services provider in Moscow, ID can provide peace of mind and ensure that residents are maximizing their financial potential.

What should I look for in a tax services provider?

When it comes to tax service providers in Moscow, ID, there are a few important qualities to consider. Firstly, it is essential that the provider is well-versed in the tax laws and regulations specific to Idaho, as well as the federal tax code. Additionally, they should have a strong attention to detail and be able to navigate complex financial situations with ease. One thing that sets Moscow, ID apart from other cities is its unique blend of rural and urban environments. This means that a tax service provider in Moscow should be able to work with clients from a variety of backgrounds and industries, from farmers to tech startups. They should also be able to provide personalized service that takes into account the unique needs and challenges of each client. Overall, a great tax service provider in Moscow, ID should be knowledgeable, detail-oriented, and adaptable to the diverse needs of the community.

What documents are needed to file income taxes?

In order to file income taxes in Moscow, ID, a tax preparer will require various documents from the taxpayer. These documents include but are not limited to W-2 forms, 1099 forms, receipts for deductible expenses, and any other relevant financial statements. It is important to note that Moscow, ID has specific tax laws and regulations that must be adhered to, including a local sales tax of 6%. Additionally, residents of Moscow, ID may be eligible for various tax credits and deductions, such as the Idaho Grocery Credit and the Idaho Property Tax Reduction. Therefore, it is crucial that taxpayers provide their tax preparer with all necessary documentation and information to ensure accurate and timely filing of their income taxes.

How much do tax preparation services cost?

Tax preparation services in Moscow, ID can vary in cost depending on the complexity of your tax situation. For example, if you are a small business owner with multiple employees and various deductions, you can expect to pay more than someone with a simple tax return. Additionally, Moscow, ID has a unique tax code that requires expertise in local tax laws. This means that tax preparers in Moscow, ID may charge a premium for their specialized knowledge. However, it is important to note that investing in a quality tax preparer can save you money in the long run by ensuring that you receive all eligible deductions and credits. Overall, the cost of tax preparation services in Moscow, ID can range from $200 to $500 or more depending on the complexity of your tax situation and the expertise of your chosen tax preparer.

How long does it take a tax preparer to file taxes?

Tax preparation in Moscow, ID can take anywhere from a few hours to several days depending on the complexity of the tax return. With its diverse economy, including agriculture, education, and technology industries, tax preparers in Moscow must navigate a range of tax laws and regulations. Additionally, Moscow's proximity to the University of Idaho means that many residents are students or employees of the university, which can add another layer of complexity to tax preparation. Despite these challenges, tax preparers in Moscow are skilled and experienced, and can help individuals and businesses file accurate and timely tax returns.

What are the most common tax problems?

Moscow, ID is a beautiful city, but it's not immune to tax problems. One of the most common issues that residents face is the complexity of the tax code. The tax laws in Moscow, ID are often convoluted and difficult to navigate, which can lead to mistakes and errors when filing tax returns. Additionally, many residents struggle with understanding the various deductions and credits that are available to them, which can result in missed opportunities to save money. Another problem is the high property taxes that residents have to pay, which can put a strain on their finances. This is especially true for homeowners, who may have to pay thousands of dollars in property taxes each year. Overall, navigating the tax system in Moscow, ID can be a daunting task, but with the right guidance and support, residents can avoid common pitfalls and ensure that they are in compliance with all applicable tax laws.

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Tax preparation company Intuit to lay off 1,800 as part of an AI-focused reorganization plan

FILE - Intuit TurboTax packages are seen on display in a Costco Warehouse, Jan. 26, 2023, in Pittsburgh. Tax preparation and financial software company Intuit announced an AI-focused reorganization plan Wednesday, July 10, 2024, that includes laying off about 10% of its workforce. (AP Photo/Gene J. Puskar, File)

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WASHINGTON (AP) — Tax preparation and financial software company Intuit announced an AI-focused reorganization plan Wednesday that includes laying off about 10% of its workforce.

The company behind QuickBooks and TurboTax said it was laying off 1,800 employees, but that it expects to hire at least that many in fiscal 2025 as it accelerates its focus on incorporating artificial intelligence into its products and services.

In an email to employees, CEO Sasan Goodarzi said more than 1,000 of the layoffs were employees that were not meeting the company’s elevated expectations.

Another 300 positions are being eliminated “to streamline work and reallocate resources toward key growth areas,” the email said.

Mountain View, California-based Intuit will also close offices in Boise, Idaho and Edmonton in Alberta, Canada where more than 250 employees work. Some of those workers will transfer to new locations, the company said.

“The era of AI is one of the most significant technology shifts of our lifetime,” Goodarzi said in the opening of his email to staff. ”Companies that aren’t prepared to take advantage of this AI revolution will fall behind and, over time, will no longer exist.”

As for severance, Intuit said that all its laid off U.S. employees will get a minimum of 16 weeks of pay, plus two additional weeks for every year of service and “at least” six months of health insurance coverage. U.S. employees received 60 days notice of their termination, with a last day of Sept. 9.

In a regulatory filing, Intuit estimated the reorganization plan will incur between $250 million and $260 million in charges, mostly coming in its fiscal fourth quarter ending July 31.

Intuit shares fell 3.6% in morning trading to $626.29 per share.

Watch CBS News

Project 2025 would overhaul the U.S. tax system. Here's how it could impact you.

By Aimee Picchi

Edited By Anne Marie Lee

Updated on: July 12, 2024 / 1:42 PM EDT / CBS News

Project 2025, a 900-page blueprint for the next Republican president, is gaining attention for its proposals to overhaul the federal government. Among those changes: a major restructuring of the U.S. tax code. 

President Biden and Democrats have been citing Project 2025 in recent weeks as they seek to highlight what could be in store if former President Donald Trump wins at the polls in November and retakes the White House in January.  Many of the blueprint's proposals touch on economic matters that could impact millions of Americans, as well as social issues such as abortion and diversity, equity and inclusion, or DEI, topics. 

Project 2025 , overseen by the conservative Heritage Foundation, is spearheaded by two ex-Trump administration officials: project director Paul Dans, who was chief of staff at the Office of Personnel Management, and Spencer Chretien, former special assistant to Trump who is now the project's associate director.

Trump: "I know nothing about Project 2025"

For his part, Trump has distanced himself from the blueprint, writing on Truth Social early Thursday that he isn't familiar with the plan. His campaign has proposed its own goals through " Agenda 47 ," which tends to focus on social and political issues such as homelessness and immigration rather than taxes.

"I know nothing about Project 2025. I have not seen it, have no idea who is in charge of it, and, unlike our very well received Republican Platform, had nothing to do with it," Trump wrote  Thursday.

His pushback comes after Heritage Foundation President Kevin Roberts opined in a podcast interview that the U.S. is "in the process of the second American Revolution, which will remain bloodless if the left allows it to be." 

According to Project 2025's website, its goal is to have "a governing agenda and the right people in place, ready to carry this agenda out on day one of the next conservative administration."

A shift to two brackets

The tax proposals of Project 2025, if enacted, would likely affect every adult in the U.S. by tossing out the nation's long-standing system of multiple tax brackets, which is designed to help lower-income Americans pay a smaller share of their income in federal taxes compared with middle- or high-income workers. 

Currently, there are seven tax brackets — 10%, 12%, 22%, 24%, 32%, 35% and 37% — with each based on income thresholds. For instance, a married couple pays 10% in federal income tax on their first $23,200 of income, and then 12% on earnings from $23,201 to $94,300, and so on. Married couples need to earn over $487,450 this year to hit the top tax rate of 37%.

Project 2025 argues that the current tax system is too complicated and expensive for taxpayers to navigate. To remedy those problems, it proposes just two tax rates: a 15% flat tax for people earning up to about $168,000, and a 30% income tax for people earning above that, according to the document . It also proposes eliminating "most deductions, credits and exclusions," although the blueprint doesn't specify which ones would go and which would stay.

"The federal income tax system is progressive, and people who make more money pay a higher marginal tax rate than people who make less money," Brendan Duke, senior director for economic policy at the left-leaning Center for American Progress, told CBS MoneyWatch. "Conservatives look at that, and they feel that that's unfair to the wealthy to ask them to pay a greater share of their income in taxes than lower income families."

The Project 2025 proposal "is a dramatic reform of how we fund our government, where we ask the wealthy to pitch in more than lower income families," he said. "This shifts taxes from the wealthy to the middle class, full stop."

Project 2025 didn't immediately respond to a request for comment. 

In a statement, the Heritage Foundation said it will ultimately be up to the next conservative president do decide which recommendations to implement, adding "As we've been saying for more than two years now, Project 2025 does not speak for any candidate or campaign." 

Project 2025's tax rates 

Millions of low- and middle-class households would likely face significantly higher taxes under the Project 2025's proposals.

He estimated that a middle-class family with two children and an annual income of $100,000 would pay $2,600 in additional federal income tax if they faced a 15% flat tax on their income due to the loss of the 10% and 12% tax brackets. If the Child Tax Credit were also eliminated, they would pay an additional $6,600 compared with today's tax system, Duke said. 

By comparison, a married couple with two children and earnings of $5 million a year would enjoy a $325,000 tax cut, he estimated. 

"That 15% bracket is a very big deal in terms of raising taxes on middle-class families," Duke said. 

Millions of U.S. households earning less than $168,000 would likely face higher taxes with a 15% rate. Currently, the bottom half of American taxpayers, who earn less than $46,000 a year, pay an effective tax rate of 3.3%  — which reflects their income taxes after deductions, tax credits and other benefits. 

Among other tax and economic changes proposed by Project 2025: 

• Cutting the corporate tax rate to 18% from its current 21%, which was enacted in 2017's Tax Cuts and Jobs Act. Prior to the TCJA, the corporate tax rate stood at 35%.
• Reducing the capital gains tax to 15%. Currently, high-income earners pay a tax of 20% on their capital gains.
• Eliminating credits for green energy projects created by the Inflation Reduction Act.
• Considering the introduction of a U.S. consumption tax, such as a national sales tax. 
• Eliminating the Federal Reserve's mandate to maintain full employment in the labor market.

To be sure, overhauling the tax system would require lawmakers to approve changes to the tax code, which could be difficult if either the House or Senate is controlled by the opposing party. For instance, Trump was able to get his Tax Cuts and Jobs Act passed by a Republican-led Congress, even though no Democrats voted in support of the measure. 

What does Trump say about taxes?

Trump hasn't yet proposed any concrete tax plans, but analysts expect that he would seek to extend the tax cuts enacted through the TCJA if he is reelected. Currently, many of the provisions of the TCJA, including lower tax brackets, are set to expire at the end of 2025. 

One likely scenario if Trump is reelected is that Republican lawmakers would extend the TJCA's tax cuts, while seeking to fund the reduction in tax revenue by repealing some of the clean energy and climate-related provisions in the Biden administration's Inflation Reduction Act, according to an April report from Oxford Economics. Lawmakers could also seek to cut spending on social benefits to offset the tax cuts, the research firm added.

Trump has suggested a proposal to create a 10% tariff for all imports and a 60% tariff for Chinese imports that could raise enough money to eliminate the federal income tax. 

Tax experts also say the math doesn't work out because money raised from new tariffs would fall far short of replacing the more than $2 trillion in individual income taxes collected by the IRS each year. Consumers are also likely to pay more in higher costs for imported consumer goods and services with tariffs tacked onto them, experts note.

"A tariff is a consumption tax, and there is a throughline between [Project 2025's] tax reform and what Trump has talked about, getting rid of taxes in favor of a consumption tax," Duke noted. 

• Donald Trump

Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.

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Ten things to know from the King's Speech

Find out what the King's Speech means for you.

This year’s King’s Speech focuses on creating wealth in every corner of the country, and improving the living standards of working people.    

We’re bringing in more than 35 bills and draft bills to enable economic growth – including a Bill that enforces tough new spending rules.    

The package of bills will focus on growing the economy through speeding up the building of houses and infrastructure, improving transport, creating more jobs and securing clean, green energy – helping to make every part of the country better off.    

New laws will also help to create wealth in every community and hand power back to local leaders who know what is best for their areas.   

Here are ten things to know about our new programme of legislation, and what they mean for you.    

1) Kickstart economic growth  

We are making sure nobody can play fast and loose with public finances – and that we avoid chaos which leaves families with spiralling bills.    

A new Bill will strengthen the role of the Office of Budget Responsibility, meaning significant fiscal announcements must be properly scrutinised and that taxpayers’ money is respected.   

And we will introduce a Bill to ensure the National Wealth Fund will make transformational investments across the UK. 

2) Get Britain building    

We’ll get Britain building, through planning reform, as we speed up the delivery of high-quality housing and infrastructure.    

This will help provide more housing across the country and support sustained economic growth.   

We will also give more rights to people renting their homes, including putting an end to unfair no-fault evictions, and reforming grounds for possession.   

3) Make work pay   

Our Employment Rights Bill is a significant step towards delivering this Government’s plan to make work pay – the biggest upgrade to workers’ rights in a generation.  

We will ban exploitative zero-hours contracts, end fire and rehire, and introduce basic employment rights from day one.  

And through our changes to the Low Pay Commission, we’ll make sure the minimum wage is a genuine living wage. 

4) Hand back power to communities    

New legislation will help to create wealth in every community and hand power back to local leaders.   

We’ll introduce a Bill to move power out of Westminster and back to those who know their areas best - giving local leaders the tools they need to drive growth.   

New laws will give more powers to metro mayors and combined authorities, helping support local plans that bring wealth to communities.    

5) Provide better transport    

We’ll put our rail system back on track with new laws to deliver for passengers.     

New laws will improve the railways by reforming rail franchising, establishing Great British Railways and bringing train operators into public ownership.   

And we’ll introduce a Bill to allow local leaders to take control of their bus services.   

6) Make Britain a clean energy superpower  

We’re committed to making Britain a clean energy superpower by 2030 - helping lower household bills for good over time.    

A new Bill will help set up Great British Energy, a publicly owned clean-power company that will help boost energy security, create jobs and build supply chains in every corner of the UK.   

We’ll also introduce legislation that helps unlock investment in energy infrastructure, supports sustainable aviation fuel production and strengthens the water regulator’s powers.    

7) Strengthen our border  

The government will strengthen the border with a new Bill that modernises the asylum and immigration system, including launching a new Border Security Command.    

The command will deploy more police and investigators to smash the criminal smuggling gangs, tackling the problem at source. The Bill will give law enforcement new enhanced counter-terror style powers to destroy the evil business model of human trafficking.   

8) Take back our streets  

We’ll introduce laws to strengthen community policing, giving the police greater powers to deal with anti-social behaviour and strengthen support for victims.    

New laws will improve the safety and security of public venues and help keep the public safe from terrorism, and we will bring forward plans to halve violence against women and girls.   

9) Break down barriers to opportunity  

We’ll take action to raise educational standards and break down barriers to opportunity.  This includes measures to help people back into employment after the pandemic and a Bill to raise standards in education and promote children’s wellbeing.    

We’ll end tax breaks for private schools - funding 6,500 new teachers – and set up Skills England to make sure we have the highly trained workforce that England needs.    

Our plan also includes reforming the apprenticeship levy and setting out work on legislation to enshrine the full right to equal pay in law.   

And we’ll launch an independent football regulator to ensure greater sustainability in the game and stronger protections for fans.   

10) Improve the NHS   

Our government will take steps to improve the National Health Service for everyone – including reducing waiting times and focusing on prevention.   

We’ll improve mental health provision for young people and make sure it’s given the same attention and focus as physical health and we will modernise the Mental Health Act, so it is fit for the twenty first century, ensuring all patients are treated with dignity and respect.   

Our plan includes introducing legislation to help stop young people smoking and vaping, and to restrict advertising junk food to children, along with the sale of high caffeine energy drinks to children.   

To read the full King’s Speech click here .

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Rooftop where gunman shot at Trump was identified as a security vulnerability before rally: sources

The rooftop where a gunman shot at former President Donald Trump during a campaign rally was identified by the Secret Service as a potential vulnerability in the days before the event, two sources familiar with the agency’s operations told NBC News.

The building, owned by a glass research company, is adjacent to the Butler Farm Show, an outdoor venue in Butler, Pennsylvania. The Secret Service was aware of the risks associated with it, the sources said.

“Someone should have been on the roof or securing the building so no one could get on the roof,” said one of the sources, a former senior Secret Service agent who was familiar with the planning. 

Understanding how the gunman got onto the roof — despite those concerns — is a central question for investigators scrutinizing how a lone attacker managed to shoot at Trump during Saturday’s campaign event.

The Secret Service worked with local law enforcement to maintain event security, including sniper teams poised on rooftops to identify and eliminate threats, Secret Service spokesman Anthony Guglielmi said. But no officers were posted on the building used by the would-be assassin, outside the event’s security perimeter but only about 148 yards from the stage — within range of a semiautomatic rifle like the one the gunman was carrying.

The Secret Service had designated that rooftop as being under the jurisdiction of local law enforcement, a common practice in securing outdoor rallies, Guglielmi said.Butler County District Attorney Richard Goldinger said his office maintains an Emergency Services Unit team, which deployed four sniper teams and four “quick response teams” at the rally. But he said the Secret Service agents were in charge of security outside the venue. 

“They had meetings in the week prior. The Secret Service ran the show. They were the ones who designated who did what,” Goldinger said. “In the command hierarchy, they were top, they were No. 1.”

Goldinger said the commander of the Emergency Services Unit told him it was not responsible for securing areas outside the venue. “To me, the whole thing is under the jurisdiction of the Secret Service. And they will delineate from there,” he said.

The former senior Secret Service agent also said that even if local law enforcement “did drop the ball,” it’s still the agency’s responsibility “to ensure that they are following through either beforehand or in the moment.”

“Just because it is outside of the perimeter, it doesn’t take it out of play for a vulnerability, and you’ve got to mitigate it in some fashion,” the source added.

A volley of shots rang out minutes into Trump’s speech. He reached for his right ear — he said later it was pierced by a bullet — then dropped to the ground as Secret Service agents rushed to shield him. Trump emerged with blood on his ear and his face. One attendee was killed , and two others were injured.Witnesses listening to Trump’s speech from outside the event’s security perimeter recalled pointing out the gunman to law enforcement a couple of minutes before the shooting began. After the gunfire started, Secret Service personnel shot and killed the 20-year-old gunman, Thomas Matthew Crooks .

The clamor over the Secret Service’s biggest failure since the shooting of President Ronald Reagan in 1981 is coming from both political parties, from former agents and from security experts.

“My question is: How did he get onto that roof undetected?” said Anthony Cangelosi, a former Secret Service agent who worked on protective details for presidential candidates, including John Kerry in 2004.

The Secret Service’s work on campaign events like Saturday’s begins with advance planning, setting up a security perimeter and positioning teams on the ground and on rooftops — often in partnership with local law enforcement. The ground deployments include a counterassault team, and the rooftop personnel include counter-sniper teams.

Guglielmi, the Secret Service spokesman, said the agency had two of its counterassault agents at the event and filled out the rest of the platoon with at least six officers from Butler County tactical units. The Secret Service also deployed two counter-sniper teams. Two other security units needed for the event were staffed by local law enforcement agencies, Guglielmi said. Those details were first reported by The Washington Post.Investigators will want to examine the Secret Service’s site security plan for the rally, said Cangelosi, the former Secret Service agent. He expects they’ll discover one of two things: Either officials failed to make an effective plan for keeping potential shooters off the building Crooks fired from, or officers on the ground failed to execute the plan.

“I don’t like making any assumptions, but it does look like some mistakes were made, that this was preventable,” said Cangelosi, now a lecturer at John Jay College of Criminal Justice in New York.

Although it’s common to task local law enforcement agencies with patrolling outside an event’s security perimeter, Cangelosi said, the ultimate responsibility for ensuring that all vulnerabilities are covered rests with the Secret Service.

If officials had placed an officer on the building where the gunman fired from, Cangelosi said, chances are he “wouldn’t even attempt what he attempted.”

“You don’t surrender the discretion of what’s supposed to be done to the local police,” he said. “In other words, you guys have the outer perimeter, but you would want to say, ‘We need an officer on that roof.’ Not ‘that’s your responsibility; do what you see fit.’”

Jim Cavanaugh, a retired special agent in charge with the Bureau of Alcohol, Tobacco, Firearms and Explosives who has worked on Secret Service details, told NBC News that while the Secret Service did a good job taking out the gunman after shots began, the failure to post officers on the building he scaled was “a tremendous lapse.”

“The only way to stop that is you have a lot of people, you get there first, and you command the high ground,” Cavanaugh said. “This is basic, and the Secret Service has done it for years successfully, so I’m really surprised that they did not have that high ground covered.”

The questions extended to Congress, where members demanded answers from the Secret Service and its parent agency, the Department of Homeland Security.“This raises serious concerns regarding how a shooter was able to access a rooftop within range and direct line of sight of where President Trump was speaking,” House Homeland Security Committee Chairman Mark Green, R-Tenn., wrote in a letter to Homeland Security Secretary Alejandro Mayorkas.

Green asked Mayorkas to provide documentation relating to the event’s security plan, the screening of attendees and the level of resources provided to Trump’s Secret Service detail. A committee spokesperson told NBC News that Republican members would hold a briefing with Secret Service Director Kimberly Cheatle on Monday “to voice their concerns and ask pressing questions.”

Another lawmaker, Rep. Ruben Gallego, D-Ariz., wrote Cheatle asking who approved the security plan, whether a proper threat assessment was conducted, whether attendees raised alarms and whether there were failures in following protocols that allowed the attack to happen.

“I call on all those responsible for the planning, approving, and executing of this failed security plan to be held accountable and to testify before Congress immediately,” Gallego wrote in a letter to Cheatle .

Robert McDonald, a former Secret Service agent who ran protection for Joe Biden when he was vice president, told NBC News that he believes the assassination attempt will prompt soul-searching and procedural changes at the agency.

“The Secret Service is going to need to ask some hard questions of itself here and be prepared to stand up and represent why, what happened,” McDonald said.

Cangelosi, the former Secret Service agent, said investigators are also likely to ask when agents identified Crooks as a potential threat, how they reacted and whether it’s possible they could have taken him down before he fired at Trump.Secret Service snipers are trained to make rapid decisions, he said. But it’s possible that if they noticed Crooks on the roof but couldn’t tell whether he had a rifle, agents might have waited to fire on him.

“If the sniper can’t tell whether he has a gun, he or she is not going to take the shot,” Cangelosi said. “Because God forbid it’s a child who’s just excited to see a political candidate, right? So you want to make sure that there’s actually a threat.”

If there was uncertainty, Cangelosi said, it’s possible the sniper team would have dispatched officers to investigate and confirm. But investigating a potential threat can take minutes, he said, while a gunman with a semiautomatic rifle can fire several shots in a matter of seconds.

That’s why, Cangelosi said, the best defense would have been to plan ahead to keep the shooter off the roof in the first place.

“Who wants to be in that position?” he said of the snipers protecting Trump on Saturday. “You’ve got to make a split-second call. And imagine if you’re wrong.”

Sarah Fitzpatrick is a senior investigative producer and story editor for NBC News. She previously worked for CBS News and "60 Minutes." 

Julia Ainsley is the homeland security correspondent for NBC News and covers the Department of Homeland Security for the NBC News Investigative Unit.

Mike Hixenbaugh is a senior investigative reporter for NBC News, based in Maryland, and author of "They Came for the Schools."

Andrea Mitchell is chief Washington correspondent and chief foreign affairs correspondent for NBC News.

Jon Schuppe is an enterprise reporter for NBC News, based in New York.