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Do you want to establish your own tax preparation company?

Do you honestly want to establish a business with little or no concern about managing your employees, no startup expenditures, and no constraints on working hours? You may be wondering whether such a firm exists.

Starting a tax preparation agency would surely meet all of the requirements of your dream business if you have any accounting expertise or have attended a tax-related course. You may either handle your own taxes or rent a small office and hire some support to start this business.

The first step in attracting high-paying clients, whether on a small or large scale, is always to establish a good business strategy. To help you create a professional business plan that contains all the details, we’ve supplied an example business plan for a tax preparation firm named ‘ConsulTax.’

The Company

George Brad will be the owner of ConsulTax, a registered and regulated tax preparation firm. Madison, Wisconsin, in the United States, will be the location of the office building. The firm’s basis will be preparing federal and state taxes, as well as income taxes, self-employment taxes, and other taxes for people and corporations.


Before you start your tax preparation business, you must decide how big you want it to go. If you’re starting on a large scale, you’ll need a sophisticated management system with a detailed management plan; otherwise, a simple one will do.

Despite the fact that he is only starting out, George has put out a detailed management plan for his business for the sake of completeness.


When you’re working so hard to develop a successful tax practice, why overlook the critical reality of client research? You should bear in mind that you will be working with a number of customers with varied personalities at the same time, so try to understand the demands that a tax preparer may confront.

The bulk of our customers will be small business owners, leaders of small institutions, property owners, household wage earners, and so on.

Business Objective

We hope to be able to balance the startup’s early expenditures with produced revenues within a year of launch. We hope to establish a monthly net profit margin of $10,000 at the end of the first year.

Owner of a business

ConsulTax will be owned by George Brad, a University of Illinois business graduate. George has received training from the Accreditation Council for Accountancy and Taxation (ACAT), has registered with the Internal Revenue Service (IRS) after passing their course, and has finally obtained his Preparer Tax Identification Number in order to enter the field with the necessary credentials.

Why is the company being established?

Every year, millions of people are compelled to pay a tax in line with their country’s policies, which are always changing in response to the acts of higher-ranking authorities. Large firms and notable landlords can usually afford a full-time accountant, but small business owners and the average person rely on tax preparers to complete the intricate paperwork. Based on this need, his time freedom, and his marketing skills, George is starting a tax preparation service in his city.

How will the company get started?

ConsulTax will be a one-location small tax preparation service. George has chosen to hire just two tax professionals and other personnel to help him start a tax company.

The following is a synopsis of the company:

Customers’ services

Before you think about how to start a tax preparation business, you need to figure out what services you’ll provide your customers. This thoughtfulness and understanding of what you must do and the level of client satisfaction you must obtain will increase your awareness of your organization and goals.

In your tax preparation business plan, you must outline how you will be able to provide the finest and most efficient services to meet all of your customers’ needs and expectations. You may get a feel of what services are provided by others in the sector by looking at this sample business plan for a tax preparation firm, ConsulTax.

The following services are provided by ConsulTax:

  • Tax Return Preparation
  • Income tax returns, standard tax returns, and capital gains tax returns are all prepared.
  • Other financial consulting and counseling services

We’ll increase our offerings after we’ve established ourselves as a profitable firm. We want to be the first choice for our neighbors, thus we’re preparing ahead of time to ensure and guarantee the quality of our services.

Tax Preparation Business Marketing Analysis

You’ll need to develop a marketing plan for your tax preparation agency once you’ve decided what services you’ll provide your customers. Marketing analysis is important since it shows you where you stand in the industry.

You’ll need a great marketing plan to advertise your services and get them in front of as many people as possible. Otherwise, you may filter through many marketing strategies by searching the internet for tax preparation advertising examples. Looking at how other firms in the same or related sectors market themselves is another way to get more ideas about business plan preparation service.

We’ve provided a sample business plan for ConsulTax’s tax preparation service for your convenience.

Market Developments

Several small businesses in the United States cannot afford a full-time tax counsel or accountant, yet still need the services of a professional tax preparation on a regular basis. Every year, millions of people are compelled to pay a tax in line with their country’s policies, which are always changing in response to the acts of higher-ranking authorities. People who are engrossed in day-to-day chores frequently require aid with such repetitive activities, hence this firm is in high demand.

In 2014, the Bureau of Labor Statistics reported that over 90 thousand people worked in tax preparation in the United States. The value has increased significantly in 2018. According to IBISWorld, there are around 118,890 registered and regulated Tax Preparation firms in the United States of America alone. More than 292 thousand people have been hired as a consequence of this business, which brings in $10 billion every year. In addition, the corporation is predicted to expand at a rate of 4.5 percent each year. These data show that if you properly arrange your business, you will not be at a loss.

Segmentation of the Market

It is vital to study the market segmentation of your target clientele prior to establishing your business strategy. As prospective future clients, our experts have identified the following target audiences:

The corporate sector in Madison will be the most frequent customer of our services, as they will require a lot of documentation and attention to laws as they prepare for different types of taxes. We will focus on small companies in the early stages of our company in order to be introduced to bigger dealers with more experience.

Members who make money include: Our second target category is Madison service personnel, for whom we will prepare tax returns to save them the trouble of doing things they don’t understand.

Property Owners: Our third target group includes both small and large property owners in Madison. We will market our services in order to get proposals from property owners for tax preparation work.

Business Objective

Our aim is to create enough earnings to cover our business’s startup expenditures within a year of starting out, and to establish a monthly profit margin of $10,000 by the end of the first year.

Pricing of Products

The pricing of your product must be decided from the start of your business by analyzing market demands as well as the positions of your competitors. George has decided to keep his service cost low at initially in order to reach a bigger audience and create long-term partnerships with them, based on comprehensive research and analysis.


A sales strategy must be included in your tax preparation business plan since it is the step-by-step path for you to enhance and expand your firm in order to reach your objectives. This sample tax preparation business plan contains a strong advertising strategy as well as a competitive approach, which you can read more about in this document.

Analysis of Competitors

In this location, there are a number of tax preparation businesses. We are certain, however, that with our unequaled and excellent service, we will be able to quickly establish ourselves in the market. We choose to keep our pricing low in the early stages of the company to get to know our customers and interact with as many people as possible.

Strategy for Selling

To present ourselves to the target market, we’ve come up with the following advertising concepts:

Our brochures will be delivered to nearby facilities as well as potential customers.

Advertisements will be placed in newspapers and publications.

Our campaign will start with social media outlets.

We will provide a 20% discount on the second proposal from the same client.

Personal Strategy

The most important and effective step of starting a tax firm, which is hiring the essential workers, has come.

George has designed the following personnel strategy for his company.

Employees of the company

George will be in charge of management, and he will begin by hiring the following people:

  • 2 tax preparers to aid him with tax services 1 accountant to keep track of everything
  • 1 helper to assist with daily chores 1 person to answer phones and help guests at the front desk

While filing taxes, two drivers are needed for emergency transportation.

Plan your finances

“What do I need to get started?” you may wonder if you’re considering about beginning a tax preparation business. It’s fortunate that it’s the firm with the cheapest start-up costs and that it can be run efficiently by a small team. But, whether you’re starting a large firm with a lot of employees and spending a lot of money on advertising, or a tiny business, you’ll need a financial plan. A financial plan relates a business’s expenditure to its earnings and addresses issues including how beginning expenses will be handled and how the company will meet its financial objectives.

If you’re wondering how to start a tax service business, all you have to do is be systematic and disciplined so that you can cover all of the steps that successful people do. First, create a business plan, such as the one provided by ConsulTax here. To help you get through the early time, concentrate on your marketing strategy and a clear financial plan for your business.

Now we’ll show you the financial plan for ConsulTax, which was produced by George himself; it’s merely a rough estimate, but it contains a lot of useful information.