I have done personal taxes for years. What should I do to start my own tax preparation business?

I live in Michigan and passed the H&R Block course a few years ago. I have PTIN #, but no other formal certification.

Public Comments

1. You will need to become certified by completing and passing a certified tax course. Once completed you may need to join a professional orginazation but that depends in what state you are in. You are required to carry bond insurance. You will need to apply for tax id numbers for federal and state purposes. Then comes the time to purchase your tax hardware so you can be set up for electronic filing. After all of the above you can finally hang your sign. Thereafter to maintain your status as a certified tax preparer, you must have a certain number of hours of tax education every two years.
2. Currently, except for a few states (California is one) There are no licensing requirements to become a tax preparer. If you want to do more than just prepare taxes, such as representing tax payers in audits, then you must become either a CPA or attorney in your state or take the Enrolled Agent exam and pass it. I know that the H&R Block course is good, but the basic class doesn't give enough information to start your own business. I have been with Block for 16 years. I have been an instructor for Basic and some advanced courses. I am an Enrolled Agent. This past season, I have prepared over 200 personal returns. I have also prepared an S Corp and an LLC. For my continuing education (Enrolled Agents are required to take 27 hours of CEUs annually) I took a total of 68 hours this year alone. This included: Estates and Trust Income Tax, Estate Taxation, Employee Stock Options, Changes in Accounting Methods This year I plan on taking Corporations, Partnerships, Employment Taxes, Representation, Ethics (required for EAs every 3 years). I guess, then, if you want to open your own business, I would suggest taking as much education as possible, keeping up with all the tax law changes and becoming and Enrolled Agent or CPA specializing in taxes.