Small business tax prep and bookkeeping

Handle tax returns plus quarterly filings and bookkeeping for local sole traders and small businesses.

Startup cost$2k to $8k
Monthly revenue$2k to $10k
Time needed25+ h/week
First incomeMonths
  • $2k-8k
  • Full-time
  • From home
  • Licence or permit needed

Estimates for a small start in the US, not guarantees.

Official data

28,762 US businesses with employees in this field, +1.3% in a year

NAICS 541213 “Tax preparation services”. Source: U.S. Census Bureau, County Business Patterns 2023.

What it is

A year-round practice that files business returns (self-employed, LLC, S corp) and personal returns, and adds quarterly estimated taxes and monthly bookkeeping for local owners.

Your first three steps

  1. Get a PTIN, take business tax and bookkeeping training, and consider the IRS Annual Filing Season Program or becoming an Enrolled Agent
  2. Form an LLC if it suits you and get an EIN, then check your city or county business license rules
  3. Reach out to local accountants' referrals, chambers of commerce and freelancer groups to find your first retainer clients
Who pays

Freelancers, contractors, shop owners, restaurants and other small businesses without an in-house accountant.

How it makes money

Fees per business return, plus monthly retainers for bookkeeping and tax planning, which smooths income across the year.

Skills that help
  • Strong knowledge of small business tax rules
  • Bookkeeping software such as QuickBooks
  • Organized and good with deadlines
  • Building trust with business owners
Watch out for
  • Only CPAs, enrolled agents and attorneys have unlimited rights to represent clients before the IRS, so check what you can and cannot do with your credential
  • Professional liability (E&O) insurance and general liability cover
  • State preparer registration and local business license rules vary, so check yours
  • Secure storage and sharing of client financial data
  • Retainer clients depend on timely records from owners, so set clear deadlines in your contract

Deep research report · US

Everything you need to start: small business tax prep and bookkeeping

Researched with live web search for United States: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.

  • Startup costs with real prices
  • Licences, registration and rules
  • Pricing: what others charge
  • Break-even example
  • Finding your first customers
  • 30-day launch plan
  • Risks and how to reduce them
Ready in about 2 minutes · one-off payment, tax included

See a full sample report

Questions people ask

How much does it cost to start a small business tax and bookkeeping practice?

Startup costs are typically around $2,000 to $8,000, depending on your software, credentials and insurance. These are estimates. Check what professional liability (E&O) and general liability cover you need before taking on clients.

What can I do for clients without a CPA license?

Only CPAs, enrolled agents and attorneys have unlimited rights to represent clients before the IRS, so check what you can and cannot do with your credential. Also check state preparer registration and local business license rules.

How much can a small business tax and bookkeeping practice earn?

Monthly revenue is typically around $2,000 to $10,000, depending on how many clients you serve and which services you offer. These are estimates. Retainer clients depend on timely records, so set clear deadlines in your contract.

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