Step 1: Learn Taxation, Not Just Software
This is the most important step, and the one most often overlooked.
Many beginners try to learn tax software first. The problem is that software only guides inputs. It does not teach you how taxation works.
To build a real business, you need to understand:
- How income is categorized and reported
- How deductions and credits apply
- The structure of individual and sole proprietor returns
- The reasoning behind tax decisions
As an approved IRS CE provider, this is exactly the type of foundation National Tax Training School provides, focusing on real understanding rather than just software use.
Once you understand the logic, you can work across any platform and handle a wider range of client situations. This is what allows you to move beyond simple returns and build confidence in your work.
Step 2: Handle Certification and Legal Requirements
Before taking on clients, you need to be properly set up.
Anyone preparing federal tax returns for compensation must obtain a PTIN from the IRS. This is a required identification number for paid tax preparers.
We have a module in the course which provides guidance for registering for a PTIN.
Beyond that, requirements vary. Most states do not require a formal license, but some do. For example, California requires approved education for tax preparers, while other states (like OR, MD, and NY) have their own registration or continuing education rules.
National Tax is an approved educational provider by the state of CA. We also have a course which provides guidance for the State of MD requirements.
There are also IRS-recognized continuing education programs that, while not always mandatory, help maintain compliance, improve credibility, and keep your knowledge current.
Handling these requirements early positions you as a professional and avoids issues later on.
Step 3: Set Up Your Business Structure
Even if you’re starting small, structure matters.
Most tax preparers choose a simple setup such as an LLC to create separation between personal and business liability. You will also need a business name, an EIN, and a dedicated business bank account.
Step 4: Choose the Right Tools
There are several strong options in the market, and most will allow you to prepare returns efficiently. The key is not which software you choose, but how well you understand what you are doing within it.
Tax software is part of your workflow, but it should not define your capability. When your knowledge is solid, switching or adapting to different tools becomes easy.
Step 5: Get Your First Clients
You don’t need a large marketing system to start.
Most tax businesses begin by serving people already within reach. This includes friends, family, and local connections. From there, referrals naturally follow when the work is done well.
Reach out to:
- Family
- Friends
- Community relationships
Send out an email letting people know you’re getting started. Offer a discounted rate to your first clients. Ask clients for referrals once they’ve had a good experience.
As trust builds, so does your client base. Over time, you can add more structured marketing, but consistency and reliability are what drive early traction.
Step 6: Focus on the Client Experience
Tax preparation is not just about filing returns. It is a trust-based service.
Clients want to feel confident that their taxes were handled correctly. They also want clarity. When you communicate clearly, stay organized, and explain outcomes in a way they understand, you create a better experience.
Throw in something extra. Go beyond the return itself, such as advising on IRA contributions or identifying additional opportunities for tax savings.
This is what leads to retention. And in a tax business, retention is what creates stability.
Step 7: Stay Current With Tax Law
Tax law changes every year, and staying updated is part of the job.
Continuing education plays a key role in maintaining accuracy and credibility. It ensures that you are working with the most current information and allows you to confidently handle evolving scenarios.
At National Tax Training School, we keep our alumni up-to-date with the ever-changing tax laws.
Professionals who stay current are better positioned to serve clients and avoid costly errors.
Most people will keep thinking about getting into tax.
Very few will actually start.
Not because they can’t do it, but because they never take the time to learn how it works.
If you’ve made it this far, you’re already further than most.
The question now is simple:
Are you going to keep thinking about it, or actually move forward? 🔥
Are you going to keep thinking about it, or actually move forward? 🔥
