People and businesses will always have to pay tax. In this sense, a business where you help people get the most out of their return has high potential. Whether you plan to start out on your own or build a larger business, we’ll outline the steps you can take to start your own tax business.
1. Determine your business model
This determines how your business will bring in revenue. Here, we provide a list of scenarios that you may want to question:
- Will you provide year-around accounting services to your clients in addition to your tax expertise?
- Will you be a tax business that operates on a largely seasonal or periodical basis?
- Do you want to focus on business tax, individual tax, or both?
- What kind of clients do you want? Do you want high volume low-cost clients or low volume high-profile clients?
It’s important to decide so you can choose the right tax software and tools that will be appropriate for your business.
2. Become a certified tax accountant
When it comes to providing tax services and starting your own tax business, you’ll have to be fully qualified before you can practice. Reputable and relevant accreditations are usually granted by universities, which will be subject to where you’re from. Upon completion, you will also be eligible for your CPA or CA, which allows you to gain further accreditation with regard to tax accounting.
3. Get registered
After determining your business model, you should decide how you want to structure your business. You will need to apply for an ABN to operate as a sole trader or partnership. Further, if you want to run your business as a company you will have to register one online.
4. Register your business name
Be creative with the selection of your business name, as this will become one of your fundamental marketing tools. When it comes to registering a business name, you should check if it’s available first. After you’ve registered your name, you can get to designing a logo and registering a trademark to protect your intellectual property.
While starting your own tax business requires certification, it can be very rewarding and profitable. As the initial stages of starting a business are vital, following the steps above will help in your business’s longterm success. If you have further questions with regard to registration, intellectual property or insurance it is worth contacting a business lawyer.