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…
How to Choose Tax Preparation Software as a New Preparer
Your choice of software affects your workflow, your accuracy, your client experience, and your costs. Here's how to think about it. The Main Options Drake Tax is one of the most popular choices for independent…
What Is a PTIN and Why Do You Need One to Prepare Taxes?
PTIN stands for Preparer Tax Identification Number. The IRS requires every person who prepares or assists in preparing a federal tax return for compensation to have one. No PTIN, no paid tax preparation. How to…
Tax Prep Franchise vs. Independent Practice: An Honest Cost Comparison
If you're considering a career in tax preparation, someone has probably suggested buying into a franchise. Before you sign anything, look at the numbers. The Franchise Model H&R Block, Jackson Hewitt, and Liberty Tax are…
Can AI Replace Tax Preparers? What the Data Actually Shows
The short answer is no. Here's the long answer, with numbers. The Employment Outlook The Bureau of Labor Statistics projects 5% employment growth for tax preparers through 2034, faster than the national average for all…
How AI Is Changing Tax Preparation (and Why That’s Good for New Preparers)
AI is already embedded in every major professional tax software platform. Understanding what it does, what it doesn't do, and how to use it to your advantage is one of the most important things a…
How to Get Your First 50 Tax Clients Before Filing Season
Fifty clients is the number to target for your first tax season. It's enough to generate meaningful revenue, build your confidence, and create a returning-client base for year two. Here's how to get there. Months…
Do You Need a Degree to Become a Tax Preparer?
No. The Bureau of Labor Statistics lists the typical entry-level education for tax preparers as a high school diploma with moderate on-the-job training. There is no federal requirement for a college degree, an accounting certificate,…