Start a Tax Business from Home

If you’re thinking about starting a tax preparation business from home, then you’re in good company.  For many new tax preparers, this is a great way to get started and build some tax preparation experience while having the lowest amount of overhead as possible.  In addition to reducing your overhead, you’ll be able to deduct some of your home expenses as business use of home expenses.  While not everything will be proportionally deductible, the utilities that you use for your business will be, even your mortgage interest or rent will be partially deductible. 

A few considerations for a home office would be specific office space within the home, visitor considerations and marketing considerations.  Do you already have a home office to use for starting a home-based tax business? That would be the easiest room to convert to a business office, but any room will work.  Do you need to make improvements to the room? Does this room or area have a door to the outside? If not, are you willing to let people walk through your house to that area? Are you willing to let people, potentially strangers, into your home at all?  Will you cater to folks who want to sit and wait while you prepare the return or do you plan to offer a drop off/pick up service?  One of the more challenging considerations is your marketing.  Are you willing to put your home office address on marketing materials for distribution to potentially thousands of community members or more?  Or are you willing to forego an address on your marketing materials and stick to email, phone and website address?