Step by step
- Get your PTIN. Every paid preparer needs one: $18.75 for 2027, about 15 minutes online through the IRS PTIN system, and it expires December 31. See how to get or renew a PTIN.
- Take the 60-hour qualifying education course from a CTEC-approved provider: 45 hours of federal tax law and 15 hours of California tax law. You then have 18 months to register.
- Buy a $5,000 tax preparer surety bond from a surety company before you register. See tax preparer bonds.
- Complete the background check and fingerprinting. In California this is Live Scan; out-of-state applicants use FD-258 fingerprint cards.
- Register with CTEC and pay the $102 application fee. You can't prepare returns for pay until your registration is approved. After that, registration is $35 a year.
- Apply for an EFIN if you'll e-file as your own business. There's no IRS fee, the application includes a suitability check, and it can take up to 45 days — apply well before January. See how to get an EFIN.
- Choose professional tax software and, if your clients need it, enroll in bank products so fees can come out of refunds. As a partner office you pay $0 upfront for software, setup and training, and we help you get clients.
- Write your security plan (WISP). The FTC Safeguards Rule and IRS Publication 4557 expect every preparer to protect client data — multi-factor authentication, encryption, backups.
Staying registered
Each year you need 20 hours of continuing education and must renew by October 31 (a late renewal window runs to January 15). Your PTIN must be renewed for the new year too. If your CTEC registration lapses, you may have to retake the 60-hour course and apply as a new preparer — put the renewal on your calendar.
The 20 hours break down as 10 hours of federal tax law, 3 hours of federal tax updates, 2 hours of ethics and 5 hours of California tax law, all from CTEC-approved providers. Because you're CTEC-registered, the same hours can also count toward the IRS Annual Filing Season Program, and you skip its 6-hour refresher course.
Preparing returns in California for 2027? Get your software lined up.
Professional tax software with $0 upfront, four bank partners, and help getting clients: your website, listings and ads set up for you.
Choosing a California tax preparer course
Only courses from CTEC-approved providers count, so check the provider on ctec.org before you pay. Most are online and self-paced, and many bundle the 60-hour course with the bond or with your first year of continuing education. Pick one that teaches on current-year forms, includes California returns, and reports your completion to CTEC for you. A course gets you registered; a season of real returns, in an office or with a support team behind you, is what makes you good at it.
The $5,000 CTEC bond vs. insurance
The $5,000 tax preparer bond is a surety bond, not insurance for you. It protects your clients: if a client suffers a loss from your misconduct, they can claim against the bond, and the surety then recovers that amount from you. You pay a yearly premium to keep it active, and it must be in force when you register and every time you renew. CTEC won't accept a bond dated more than 10 days in the future.
Errors and omissions (E&O) insurance is different: it protects *you* if a client claims your mistake cost them money. CTEC doesn't require it, but most preparers who open their own office carry it. Many bond companies sell both together.
Who's exempt
Certain licensed professionals — for example CPAs, attorneys and enrolled agents — are exempt from CTEC registration under California law. Confirm your status with CTEC before you rely on an exemption.
What it costs to start in California
| Item | Cost | Notes |
|---|---|---|
| PTIN | $18.75 (2027) | Federal, renew yearly |
| CTEC application | $102 | New applicants, once |
| CTEC registration | $35 per year | Plus 20 hours of CE yearly |
| 60-hour qualifying course | Varies by provider | Must be CTEC-approved |
| $5,000 surety bond | Premium varies | Bought from a surety company |
| Live Scan fingerprinting | Varies by location | Part of the background check |
| EFIN | No IRS fee | Allow up to 45 days |
Start your California office
Once you're registered, you need software, bank-product enrollment and a plan for your first season. As a partner office you get launch help, software and local search setup for $0 upfront. Budget the rest with the startup cost calculator. Compare with every other state in our tax preparer requirements by state table.
California tax preparer FAQ
Do I need a license to prepare taxes in California?
Yes, unless you're exempt. Non-exempt paid preparers must register with CTEC before preparing returns for pay.
How much does CTEC registration cost?
New applicants pay a $102 application fee, then $35 a year to renew. You'll also pay for the 60-hour course, the $5,000 surety bond premium, Live Scan fingerprinting and your $18.75 PTIN.
What are the bond requirements for a tax preparer in California?
Non-exempt preparers must keep a $5,000 tax preparer surety bond in force to register and renew with CTEC. It protects clients, not you; errors and omissions insurance is a separate, optional policy.
What's in the California 60-hour tax course?
45 hours of federal tax law and 15 hours of California tax law, from a CTEC-approved provider. You must register with CTEC within 18 months of finishing it.
How long does it take to become a CTEC registered tax preparer?
Mostly as long as the 60-hour course takes you, plus the background check and CTEC's review. Start well before January if you want to file in the 2027 season.
Do I still need an EFIN in California?
CTEC lets you prepare returns; an EFIN lets your business e-file them. If you'll run your own office, you need both.
Sources
Program rules change; confirm current requirements with the IRS and your providers.