The tax preparation industry has an advantage over many other start-ups. Most people are required to file a tax return every year. Tax preparation is a big business generating over $7.7 billion in annual revenue.

The IRS processed roughly 82 million professionally prepared tax returns last year. According to an industry report, the profitability of tax preparation, bookkeeping, and payroll services were second only to privately held oil and gas extraction companies.

For the most part, tax preparation businesses are small. 37% are run by a single person, while 53% are operated by less than ten people. There were 128,393 total employees in the field last year. Approximately 144 million individuals filed tax returns last year. That leaves plenty of tax returns to go around.

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