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Tax Preparation BusinessHow to Start a Tax Preparation Business: LLC Setup
Thinking of preparing taxes for money? The clock is already running. Why an LLC matters here, the order of steps that can reset the IRS's 45-day wait, and the key Bizee screens, start to finish.
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The video for this guide is on its wayIt publishes Nov 14
Why an LLC for a tax business?
Why an LLC for this business
01
Your clients' data
The IRS: tax pros are financial institutions, whatever their size
02
Mistakes
A claim needs a business to land on, and insurance to answer it
03
Form it first, then apply
A change that needs a new tax ID can mean a new e-file application
How to start it, in order
- Get your PTIN from the IRS. Anyone paid to prepare returns needs one, and it renews every year.
- Check your state: California, New York and others have their own registration rules.
- Form your LLC and get its EIN if you need one.
- Then apply for your EFIN through IRS e-Services. Allow up to 45 days.
- Write your data security plan. The FTC requires it, whatever your size.
- Get errors-and-omissions insurance and professional tax software.
- Publish a price list, and never charge a percentage of the refund.
Every fact in this guide was checked against a primary source before the video was made.
Ready when you are
Open Bizee from our link and follow along with your state's video.
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