Legally required? In most states, no. Necessary? Absolutely. What E&O Insurance Covers Errors and omissions insurance (also called professional liability insurance) protects you when a client claims your work caused them financial harm. In tax…
What Is Circular 230 and How Does It Apply to Tax Preparers?
Most tax preparation training programs skip this topic entirely. That's a problem, because Circular 230 establishes the professional rules you're operating under whether you know about them or not. What It Is Circular 230 is…
The Accounting Talent Shortage: What It Means If You’re Starting a Tax Practice
The accounting profession is losing people faster than it's replacing them. If you're considering a career in tax preparation, that fact shapes your opportunity. The Numbers Over 300,000 accountants and auditors have left the profession…
Schedule C Basics Every New Tax Preparer Should Know
If you're going to build a tax practice, you need to be comfortable with Schedule C. It's one of the most common forms you'll handle and one of the most profitable return types for your…
Marketing Your Tax Prep Business on a Zero-Dollar Budget
You don't need paid advertising to build a tax practice. Most of the best marketing for new preparers is free. Google Business Profile Set this up on day one. It's free, and it's the single…
How Long Does It Take to Start a Tax Prep Business from Scratch?
The realistic timeline from decision to first client is 8 to 12 weeks. Here's how that breaks down. Week 1: Credentials Apply for your PTIN (15 minutes, same-day approval in most cases). Apply for your…
What H&R Block’s Tax Course Teaches You (and What It Doesn’t)
H&R Block's Income Tax Course costs $149 and runs about 40 hours. For what it is, it's a solid introduction to basic return preparation. Here's an honest assessment. What It Covers The course teaches the…
Seasonal vs. Year-Round Tax Practice: Which Model Makes More Money?
Most new preparers picture tax season as January through April, then time off the rest of the year. That model works, but it has a ceiling. Here's how the two approaches compare. The Seasonal Model…
LLC vs. Sole Proprietorship for Your Tax Prep Business: What to Choose
If you start preparing returns without forming a separate entity, you're a sole proprietor by default. That's the simplest option. It's usually not the best one. Sole Proprietorship No formation documents. No state filings beyond…
How to Price Your Tax Preparation Services Without Undercharging
New preparers consistently set their fees too low. If that's you, here's a better framework. Don't Charge by the Hour Hourly billing punishes efficiency. As you get faster, you earn less per return. Charge flat…