A start-up business in the tax preparation industry has one major advantage. We help adult Americans do something required by federal law – submit an income tax return. Tax preparation is big business. Over 38,000 firms operated in the field last year generating $7.7 billion in revenue. Because it is required by law, tax preparation tends to be recession resistant. The IRS processed about 82 million professionally prepared tax returns last year, and that number is expected to increase. According to an industry report, the profitability of tax preparation, bookkeeping, and payroll services was second only to privately held oil and gas extraction companies.
For the most part tax preparation businesses are small. 37% are operated by a single person. 53% are operated by less than ten people. There were over 128,000 tax preparers in the field last year, and approximately 144 million individuals filed tax returns last year. That leaves plenty of tax returns to go around.
The tax preparation business is not only about taxes. Seasoned, successful tax entrepreneurs know that in order to compete you must effectively market your business. 1040TaxBiz gives our partners the tools and training to both establish a business and compete in the marketplace.
To join one of the big three tax preparation operations, you would need to invest about $30-75 thousand just to get started. We offer the low-cost, high-value option to compete with the big boys. Our innovative product lines and placement options are but a few things that set our affiliates apart from the competition.
We know taxes. We know people. We can help you make money.