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How to start a tax preparation business in California?

how to start a tax preparation business in californiaHello. I was wondering what I need to do if I want to legally prepare income taxes in California? I am a CPA so I figure all I need is a PIN #? Do I need to register with FTB or apply for e-file? I am going to simply prepare mostly 1040's. Basic tax work for family and friends. Thanks.

Answers

Erik Kortman
Title: Tax Accountant
Company: SingerLewak LLP
(Tax Accountant, SingerLewak LLP) |

I have been looking at starting something similar this year.
If you're planning to use software to e-file yourself, you should begin the e-Services registration process through the IRS (they say it can take up to 45 days).

I have been looking at TaxACT's preparers software for this year. There is a relatively low up front fee and then its $10 for each e-file. You can download the 2013 version to try it out.

Topic Expert
Scott MacDonald
Title: President/Owner
Company: AlphaMac Resources, Inc.
(President/Owner, AlphaMac Resources, Inc.) |

You are about 6 months behind the curve when dealing with the IRS. There is a ton of paperwork and approvals to practice before the IRS and being able to efile for your clients. But good luck.

Also, you need to check with the requirements of your CPA Board.

Anonymous
(Accountant) |

Thanks for your replies. I actually already got my EFIN # and I approval letter from IRS to e-file. So what I need now is the actual software and clients, is that correct? Anything I should I know? I am soo nervous and scared. I never opened my own business before.

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