1. Executive summary
Write this last, in five or six sentences: your business name and structure, where you'll operate (office, home or virtual), who you serve, what makes you different, how many returns you're targeting in your first season, and what you need to get there.
2. Services and pricing
List what you'll prepare and what you'll charge. Most new offices start with individual returns and add complexity as they gain experience. Price per form or per return type, and decide your policy on fees paid from refunds before the season starts.
| Service | Include in year one? | Your fee |
|---|---|---|
| Individual federal return (simple, W-2) | Yes | $____ |
| State return(s) | If your state has income tax | $____ |
| Self-employment / Schedule C | If you're trained for it | $____ |
| Credits that need due diligence (EITC, CTC, AOTC, HOH) | Only with a documented due diligence process | $____ |
| Refund transfer (fees paid from refund) | Optional — see bank products | Bank fee + your fee |
| Amended / prior-year returns | Optional | $____ |
| Bookkeeping or payroll | Later | $____ |
3. Target clients
Be specific. "Everyone who files taxes" isn't a market. Pick one or two groups you can reach and serve well — for example W-2 families in your neighborhood, gig and rideshare workers, a language community you're part of, or small businesses you already know. For each, note where they are, how they find a preparer today, and what they care about most (price, speed, a refund advance, someone who speaks their language).
4. Marketing plan
Tax clients decide in a short window, so your plan should be a calendar, not a list:
- October–December: reach last year's contacts, friends, family and community groups; set up your Google Business Profile if you have an office; print referral cards.
- January: your busiest marketing month — appointment reminders, social posts, flyers where your clients are, and a clear offer.
- February–April: ask every satisfied client for a review and a referral while the experience is fresh.
- Budget: set a dollar amount and a target cost per new client, and track where every client came from.
5. Operations and compliance
This is the part of the plan that has hard deadlines:
| Requirement | Why | When |
|---|---|---|
| PTIN for every paid preparer | Required to prepare returns for pay | Now; renew each year (PTIN guide) |
| State registration or license | Required in some states | Before you prepare any returns (by state) |
| Business entity and EIN | Needed before the EFIN application | October |
| EFIN | Required to e-file as your own business | Apply in October or early November — up to 45 days (EFIN guide) |
| Written information security plan | FTC Safeguards Rule and IRS Pub 4557 | Before you take client data |
| Professional tax software | Prepare and e-file returns | November–December |
| Bank-product enrollment (optional) | Let clients pay fees from refunds | After your EFIN arrives |
6. Startup and yearly costs
Separate one-time costs (entity filing, equipment, signage, deposits) from yearly ones (software, PTIN renewals, insurance, rent, marketing) and per-return costs (bank-product and e-file fees, if any). Government fees are small — a PTIN is $18.75 for 2027, and there's no IRS fee for an EFIN or EIN. Software, space and marketing are the real variables. Our startup cost calculator builds this table for you; see also tax preparer software cost.
7. Break-even
Your break-even is the number of returns where revenue covers your costs:
Break-even returns = yearly fixed costs ÷ (average fee per return − cost per return)
For example, if your fixed costs are $F and you net $N per return after per-return costs, you need F ÷ N returns. Plug in your own numbers — or let the startup cost calculator do it — and compare the result with how many clients your marketing plan can realistically reach.
8. Your first-season calendar
| Month | Milestones |
|---|---|
| October | PTIN, entity and EIN, e-Services accounts; submit the EFIN application |
| November | Fingerprints if needed; state registration; choose software; write your security plan |
| December | EFIN arrives; software setup and training; bank-product enrollment; pre-season marketing |
| January | Appointments booked; prepare returns as documents arrive; e-file when the IRS opens the season |
| February–April | Peak season; collect reviews and referrals; track results against the plan |
Turn the plan into an office
As a partner office you get professional tax software, business-setup help (PTIN, EFIN, entity, banking), training, and local search setup to bring in clients, for $0 upfront. See pricing, or follow the full tax office launch guide.
Business plan FAQ
Do I need a business plan to start a tax preparation business?
It isn't legally required, but a lender or partner may ask for one — and writing it forces the decisions that matter: pricing, target clients, credentials timing and how many returns you need to break even.
How long should a tax preparation business plan be?
A few pages is enough for most new offices. Cover services and pricing, target clients, marketing, operations and compliance, costs and break-even, and a month-by-month calendar.
What's the most important date in a tax business plan?
Your EFIN application. It can take up to 45 days, and you can't e-file as your own business without it, so apply in October or early November for the 2027 season.
How do I calculate break-even for a tax business?
Divide your yearly fixed costs by what you net per return (average fee minus per-return costs). Our startup cost calculator does the math.
Sources
Program rules change; confirm current requirements with the IRS and your providers.