Setting up a small tax practice.

Well, you're not getting much input.

I can give some input.

Have you decided what you want to do: local only, remote only, support other preparers until you're better up to speed, find only a handful of people/businesses that will keep you plenty busy, only focus on Enterprise Funds and Not For Profits?

Have you joined, for example, Chamber of Commerce or other local business groups? Are you listed for your State's "whatever" listing that apply? For example, a new person in my town wants to work independently, so I pointed out how the State's vendor system works, and she can apply for bid and no-bid contracts, just like I was a vendor to the State for teaching and rehab, for job shadowing (veteran hires, for example) as well as I had a couple dozen of the towns and villages and special purpose districts as my clients (typically to get their accounting on track, prep for year end, prep for audits and grant administration). You know, the usual "need multiple jobs to survive" strategies.

I don't know if you consider this the type of business where people just cruise the web, and SEO may not really apply. Knowing what you want to focus on, or at the least, where you want this to end up, will help you avoid spending unnecessary time and expense. I had a client who paid a fortune to set up a website, etc, and then called me, she was lying on the couch still in her pajamas, crying, because it had been a couple of weeks and no one was calling. I got her out there, they're not going to accidentally find you. Get networking. She had two kids and wanted the flexibility but some steady contracts, for baseline income year round. She's a QB ProAdvisor and an EA and focused on retail.

You know you want an EIN to avoid giving out your SSN, and the same concept applies to business email. You want to cut it loose when you stop working, and don't mix personal with business. You don't need something fancy or even your own domain, unless your plan is to grow this company. For instance, I worked with some architects for 10 years, we went from 2.5 people to 22 people in 3 locations, and you bet we had our own domain (and custom email accounts), because it served as a point of contact and a portfolio. But another advantage of finding a domain and parking at the least on intro page, would be to accept secure/encrypted FTP for your clients, so as you research GoDaddy or whoever, consider what else they provide and support.

Payment methods are tricky. I would ask some small business people in your area (non-retail) who they use, and try to find someone doing about the same number of transactions as you anticipate. It might be as simply as Square and ACH. Which means an isolated business checking account solely for this, and treat it like a sweep account. That reduces your exposure to fraud.

And you'll want a risk prevention review for fraud, identity theft, systems security, etc.

1) Is anyone in your area who would like to sell his/her business? You might call the elderly tax preparers and ask. Perhaps they wish to scale back and will refer clients to you (generally those they want to get rid of).

2) Expect to have three low-income years, so have other sources of income. People have to know you will be sticking around for a while, and that you are good at what you do. The word often spreads by mouth. Relatives and friends come out of the woodwork. Our avalanche began in the 4th year.

3) In this small town, I'm still old-school and do not accept credit cards. It adds to the expense.

4) Advertise now for a free consultation, before tax season begins.

Kind of late to the party if you are working on starting your own practice now.  E-filing is just a little over a month away and you are going to be pretty much dead in the water unless you have already obtained an EFIN.  No EFIN, no efiling.  The process can take up to a couple of months so if you don't have an EFIN, you might want to drop everything you are doing and start the process now.

You don't say what kind of experience you have.  If you have been working for another tax practice for years, that will help in your marketing attempts.  But if you have been a toll booth operator for the past 10 years and were working as a forklift driver before that, marketing is going to be a little more difficult.  

Greta doesn't accept credit cards.  I do, but that is due to the changing environment where younger clients don't carry cash and have no idea what a checkbook is.  I started accepting cards a few years back.  But for those that want to use plastic just to build up their reward points, I'm not taking a discount just so you can be rewarded.  I charge a convenience fee for me having to get nicked by third parties for processing that plastic.

Good luck.  

Same here. I just started my practice as an EA because couple of my friends asked me to do their tax.  What I am struggling is the fees to charge the return based on the complexity of the return. The area my business located is in north Phoenix AZ. I need help with the preparation fees. Could some one please share what your business charge please? 

I am filing my first return also she is my friend. I am not sure how much I should charge her. She had rental income - 3 properties, interest income, form 3115 is needed to depreciate prior year depreciation, form 8829 for current year depreciation, and 1095A, and she may be itemized. I researched the fees on National Society of Accountants, but the info was for 2020-2021, and no 3115 form fee, nor form 8829 fees. Could anyone/experts share with me what would you charge if she were your client? Thank you for your help!