Last week we talked about a few tasks you need to accomplish to get your tax business up and running. While you’re at it, here are 5 mistakes to avoid. Any one of them could put you under before your first ad surfaces in the local periodical.
Is Solo a No, No?
When first launching your tax business you probably want to start as a sole proprietor as this is the cheapest and easiest way to get started. As you grow your business you may wish to look at different entity choices.
After you have a little growth under your belt, incorporate or form an LLC. Continuing to operating as a sole proprietor can put your personal assets at risk should your business fail and you’re slapped with a lawsuit or creditors come calling. Protect yourself and your family.
Don’t Max and Mingle
Nothing will put you out of business faster than co-mingling your business and personal accounts. Open separate accounts and use them for the intended purposes.
Apply for a credit card in the name of your business and use it to build your credit. But never max out your cards—business or personal. If you apply for a loan, the bank will assume you’re strapped for cash.
Grow at a steady pace and in time you can apply for a business line of credit. Protect your credit if you want to stay in business.
A Matter of Timing
After last week’s article, you’re probably gung-ho and ready to roll. Here’s the link in case you missed it. https://www.irssolutions.com/3-aspects-of-starting-a-tax-preparation-business/ What’s the rush? Timing is everything when launching your tax preparation business. In about 3 weeks, tax season will be ramping up. Give yourself time to get acclimated before you get busy.
Don’t make the mistake of starting your tax preparation business without a business plan. You might be able to bounce back from other mistakes, but there’s no wiggle room on this one.
Unless you set long-term goals your business will lack focus. You wouldn’t travel cross-country without a map, would you? Even that makes more sense—at least you have the sun to guide your direction.
Know where you want to go and decide how you plan to get there. You may not always succeed in every endeavor, but at least you’ll know what does and doesn’t work.
Think You’re Done Learning?
No matter how long you’re in business, never, ever turn away the opportunity to further your education. Especially in today’s hyper-technologically advancing world, things change constantly. If you want to succeed, you’ll have to keep up.
The tax code becomes more complex every year and fewer people are tackling their own returns. In fact, some don’t even file. Sooner or later they’ll be audited and they’ll need help. Not sure you know what to do?
IRS Solutions makes it easy for you to help with our tax preparation software. You’ll save time and make money. Visit IRSSolutions.com for more information.
