Start a small business tax preparation and bookkeeping service

Freelancers, contractors, restaurants, salons, landlords and other small business owners who want one person to handle their taxes.

Fixed fees per return plus monthly or quarterly retainers for bookkeeping and tax planning check-ins.

• Solid grasp of bookkeeping and small business taxes
• Using accounting software
• Explaining tax rules in plain language
• Organized client follow-up

• PTIN and EFIN requirements, plus any state registration or licensing for preparers; check your state
• Only credentialed professionals (CPAs, enrolled agents, attorneys) have full IRS representation rights; check what you can and cannot do for clients
• Professional liability (errors and omissions) insurance, and a signed engagement letter for each client
• Secure handling of client financial data and written security practices
• Setting up an LLC and business license may be needed; check your city or county
• Busy periods around filing deadlines can mean long hours

Startup costs are typically around $1,000 to $5,000, depending on your software, insurance, registrations and how you set up your business. Treat this as an estimate and check which fees apply in your state.

Monthly revenue is typically around $1,500 to $7,500, depending on your client count, the services you offer and whether you add bookkeeping. Estimates assume at least about 15 hours a week, and filing deadlines can mean longer hours.

Check PTIN and EFIN requirements and any state registration or licensing for preparers. Also check what you can and cannot do for clients, since only credentialed professionals have full IRS representation rights, plus insurance and data security.