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.
- Learn the work. Texas doesn't require a course, but you'll be preparing federal returns (and other states' returns for clients with out-of-state income). A structured course — or the IRS's voluntary Annual Filing Season Program — shows clients you're serious.
- Set up your business. As a sole proprietor using a business name, file an assumed name certificate with your county clerk. To form an LLC, file a Certificate of Formation (Form 205) with the Texas Secretary of State (the filing fee has long been $300 — confirm on the SOS fee schedule). Then get an EIN (free from the IRS) and a business bank account.
- 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.
What's different about Texas
With no state income tax, most of your Texas clients' returns are federal-only — simpler workflows and faster turnaround. Many Texas preparers build volume around refund season, so bank products that let clients pay from their refund matter more than in states with large balances due.
LLCs in Texas are subject to the state franchise tax and its annual reporting, even when no tax is due; check the Comptroller's current thresholds when you form.
Preparing returns in Texas 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.
Start your Texas office
Partner offices get software, bank-product enrollment, training and support for $0 upfront, with launch help and local search setup to bring in clients — see pricing, or estimate your first year with the startup cost calculator. Compare with every other state in our tax preparer requirements by state table.
Texas tax preparer FAQ
Do you need a license to be a tax preparer in Texas?
No state license. You need a federal PTIN to prepare returns for pay, and an EFIN to e-file as your own business.
Can I prepare taxes from home in Texas?
Yes. Many Texas preparers work from home or remotely. Check your city's rules for home-based businesses and protect client data with a written security plan.
Do Texas preparers file state returns?
Texas has no personal income tax, so there's no Texas individual return. You'll file federal returns, plus other states' returns for clients who earned income elsewhere.
How much does it cost to start a tax business in Texas?
Government costs are small: $18.75 for a PTIN, no fee for an EFIN or EIN, plus your assumed name or LLC filing. Software, space and marketing are the big variables — use our startup cost calculator.
Sources
Program rules change; confirm current requirements with the IRS and your providers.