Home-Based personal tax preparer

Employees, pensioners, students, newcomers to Canada and people with simple rental or self-employment income who want help instead of doing it themselves.

A fee per return, usually based on complexity (a simple slip-only return costs less than one with self-employment or rental income). Repeat clients come back every year.

• Comfortable with numbers and detail
• Knowing Canadian personal tax rules and credits
• Clear, patient communication
• Keeping client information private

• Check CRA requirements for becoming an EFILE service provider, including the application and any rules for paid preparers
• Professional liability (errors and omissions) insurance, ask a broker what suits tax preparers
• Secure storage and handling of clients' personal information, and check the privacy rules that apply in your province
• Check whether your municipality requires a home-based business licence
• Income is very seasonal, so plan your cash flow for the quiet months
• Know where your skills end and refer complex cases to an accountant

Startup costs are typically estimated at around $500 to $3,000, depending on the tax software you choose, your computer and security setup, and insurance. Check what suits your situation before you commit to any one package.

Monthly revenue is typically estimated at around $300 to $3,000, depending on how many clients you take on. Most work falls between February and April, so income is very seasonal and you should plan your cash flow for quiet months.

Check CRA requirements for becoming an EFILE service provider and any rules for paid preparers. Also check errors and omissions insurance, privacy rules in your province, secure storage of client information, and whether your municipality requires a home-based business licence.