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Starting a Small Business/Tax Preparation Services

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Question
David, I have processed tax returns for family members for many years. This year I'm working for one of the better known tax prep services. I am amazed at how much taxpayers are willing to pay if the fees can be taken directly from their refund. So far I've only seen one customer pay upfront to avoid the additional $60, but they were still willing to pay the $300 dollar fee to have their simple return filed. My wife has been pushing for yrs for me to start my own tax prep business. Next year I'd like to give it a shot. I really don't know how to get started; especially when it comes to taking fees directly from the taxpayer's refunds. I can't find any guidance online. Any pointers you can give me are appreciated.

Answer
The system for collecting your fee from the client's refund is a service call e-collect and is available when you efile the returns.  It works with a number of software packages.  Just do an internet search for e-collect and the name of your preferred tax preparation software and you should find all the information you need.

Starting a Small Business

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David K. Staub

Expertise

I am a business and tax attorney and have spent more than 35 years assisting people in starting a wide variety of businesses. I can answer questions about the basic differences between the various entities available to new businesses, including limited liability companies, corporations, S corporations and partnerships. I can provide guidance in other areas facing start ups, such as hiring employees, signing contracts and obtaining necessary licenses. I can also direct people to sources for answers to specific legal questions which cannot be answered in a forum of this nature.

Experience

I have an extensive practice in the mergers and acquisitions area and have been involved in the tax and legal issues on hundreds of business transactions.

Website
Staub Anderson LLC
Illinois business attorneys

Practice Areas
Business Organizations
-Corporations

-LLCs
-Partnerships

-Joint ventures
Mergers & Acquisitions
-Buying/selling business
Securities Law
Tax Law
Technology Law
-Software licenses
-Development agreements

Trademarks

Organizations
Illinois State Bar Association; Chicago Bar Association (former Chairman of the Corporation & Business Law Committee and former Chairman of the Mergers and Acquisitions Subcommittee; former Executive Committee member, Federal Tax Committee and Chairman of subcommittee on general tax issues); Keystone Foundation (Trustee); Association for Corporate Growth; Midwest Entrepreneur Forum; Midwest Association of Alpha Delta Phi

Publications
Commerce Magazine; YLS Journal; ISBA Section of Taxation Newsletter

Education/Credentials
Harvard Law School, J.D., 1977; University of Illinois, B.S. in Accounting, with highest honors, 1974

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