Start an online tax advisor business for small businesses

Freelancers, sole proprietors, single-member LLCs, small shops and contractors who want ongoing tax guidance.

Monthly or quarterly retainers, flat fees per return and hourly fees for planning calls, with repeat clients each year.

• Solid knowledge of small business tax rules
• Explaining tax in plain language
• Organized client onboarding and follow-up
• Comfortable with accounting and tax software

• Only EAs, CPAs and attorneys can generally represent clients before the IRS, so check what you may offer
• Your state may regulate tax advice or the use of titles like CPA, so check your state board
• Professional liability (errors and omissions) and cyber insurance
• Secure handling of client financial data, and a written engagement agreement
• Busy periods around filing deadlines can mean long hours

Startup costs are typically around $1,000 to $5,000, depending on your software, insurance, website and secure client tools. Professional liability (errors and omissions) and cyber insurance are worth pricing early.

Check what you may offer, as only EAs, CPAs and attorneys can generally represent clients before the IRS. Your state may also regulate tax advice or the use of titles like CPA, so check with your state board.

Monthly revenue is typically estimated around $1,500 to $7,500, depending on your client numbers and services. The estimate assumes at least about 15 hours a week. Busy periods around filing deadlines can mean long hours.