How to Become a Tax Business Owner: Step by Step

Why work for someone else when you can get tax education and start your own business in no time? Whether you’re already a tax preparer or you don’t know anything about taxes, we can help! The Income Tax School provides the educational resources for individuals interested in both learning tax preparation and starting their own businesses. In fact, our in-depth business starter packages and resources are what set us apart from our competitors.

We teach you everything you need to know with no need for prior tax, accounting or business experience necessary

Step 1: Watch this short video.

YouTube video

Step 2: Education

You need the knowledge and skills to be able to prepare taxes. Start by taking our Comprehensive Tax Course. This 20-lesson course will provide you with the knowledge to prepare returns and research tax issues for most Form 1040 individual, non-business taxpayers; plus the basics of Schedule C/self-employed tax returns.

While you’re starting your tax education, start your business education by adding the Start-up Business Guide to your Comprehensive Course. Our Start-up Business Guide includes the Guide to Start and Grow Your Successful Tax Business. Written by Founder and CEO Chuck McCabe, this book will help you to launch your tax business. 

Once the course is completed, you will receive a certificate of completion. Once you’ve read through the guide, you’ll have the basic knowledge you need to get your business started.

Step 3: Starting your business

Once you have the basics down, and are confident in your tax preparation skills, you can start your tax business by taking on Form 1040 individual clients. To start your business, you’ll need to comply with the IRS requirements to obtain a Preparer Tax Identification Number (PTIN) and an Electronic Filing Identification Number (EFIN).

You’ll also need to purchase a business license and other essential items like tax software. You should also consider purchasing our Tax Practice Management Manuals. These manuals tell you everything you need to know about starting, managing, marketing, and growing your business.

Step 4: Get Credentials

The IRS markets their Federal Tax Return Preparers Directory to taxpayers and encourages them to choose tax preparers who have credentials. Credentials include EAs, CPAs, Attorneys, and tax pros who have gained their Record of Completion through the voluntary Annual Filing Season Program (AFSP)

As a new tax business owner with no reputation to proceed you, it’s important that you are on this list. Completing the AFSP will give you free marketing, credentials to promote to clients, and allow you to represent clients during an examination of a return that you prepared.

*By completing the Comprehensive Course you will satisfy the continuing education requirements for the AFSP.

In addition to taking the AFSP, you may also consider taking one of our Chartered Tax Certificate Programs. Completing any one of our Chartered Tax Certificate Programs will help you learn to prepare more complicated returns, earn a certificate to display in your office, and prepare you for the Enrolled Agents exam. 

Step 5: Expand Your Knowledge

There’s so much more than preparing returns for the general public. Learning to prepare more complicated tax returns will help you earn more money because you can charge more for those services.

We have lots of advanced courses that will help you obtain the knowledge needed to tackle more complicated forms.  Because our courses are delivered online, you can start a course anytime and study at your own pace – 24/7 from anywhere with internet access.  

That’s everything you need to know about acquiring the knowledge and starting your business! As a tax education provider, we’re always here to answer your questions, provide you with resources, and help ensure that more qualified, passionate preparers enter the industry.