Starting a Tax Firm Is Easy Now. Here’s How to Make It Thrive

When I launched my firm, I didn’t sign a lease, hire staff, or wrestle with a copier. My startup costs were a laptop, some subscription software, and the network I’d built over the years.

That would’ve been unthinkable even a decade ago. Since the early days of tax firms, “hanging a shingle” meant committing to office space, overhead, and a lot of financial risk before you signed your first client.

Technology and shifting client expectations have changed all that. It’s easier than ever to go solo. If you’re thinking about taking the leap, here are some things to consider.

No Office Needed

A tax practice without a physical office once seemed impossible. Clients expected to sit across from you in a conference room and leaf through paper returns. The office itself was part of your credibility.

Now, many clients prefer virtual service. They want to upload documents, sign electronically, and meet by video. I have clients across multiple time zones who’ve never met me in person. That flexibility lowers overhead and lets you live where you want while serving clients wherever they are.

The pandemic sped up this shift, and it’s not reversing. Convenience has become synonymous with good service. That change has opened the door for solo and small-firm practitioners to compete on equal footing. And when geography isn’t a barrier, you’re not just drawing from a bigger client base—you’re able to collaborate with contractors and other professionals wherever they happen to be.

Tax Tech Stack

The tools available to tax pros have exploded, and the variety means even solo practitioners can afford enterprise-level systems. The choices can feel overwhelming, but focus on the essentials: tools that make your daily workflow smoother.

Every tax firm needs a few basics regardless of size:

• Tax prep software with e-filing
• Video conferencing and scheduling apps to keep client meetings seamless
• A secure portal or practice management platform for engagement letters, billing, document sharing, e-signatures, and messaging
• An email/productivity suite that keeps everything organized

When you evaluate tools, test them in three areas: ease of use, integration, and data security. That last one is nonnegotiable—the IRS requires practitioners to have a Written Information Security Plan. Get your mix right, and your technology backbone will make a solo practice feel like a full-service firm.

Niches Change Everything

When you’re new, it’s tempting to say yes to anyone who needs help. But in my experience, a niche sets you apart and makes it far easier to market yourself.

A niche doesn’t have to mean an industry—it can be a type of return or a client profile you enjoy working with. Some practitioners focus on individuals, others on estates or pass-through entities.

The more focus you have, the more referrals will come your way. Colleagues will know your ideal client and see you as someone who understands their world, rather than a generalist trying to cover everything. Ironically, narrowing your scope can expand your opportunities.

Networking Is Vital

Even in a virtual world, relationships matter. My first clients didn’t find me through SEO—they came from people who already knew me. When I launched, I emailed my network of former students, colleagues, and community contacts with a simple note: “I’m starting my own firm. If you know someone who needs help, send them my way.” I still get referrals from that message.

If you don’t have a deep network yet, start building one. Financial advisers, real estate agents, and loan officers are often the best referral sources for tax professionals. Go to events where you’ll meet people in those circles. Consistent, genuine connections will pay off faster than you expect.

Word of mouth is still your best marketing channel. A great client experience turns one engagement into three.

Standards Remain High

It’s never been easier to start a tax firm. But that doesn’t mean anything goes. Clients still expect professionalism and trust you with their most sensitive information.

That means:

• Professionalism. Clear engagement letters, timely responses, polished communication.
• Compliance. Stay current on law changes and safeguard client data.
• Client care. Explain clearly, set boundaries, and build relationships based on trust.

Technology lowers the barrier to entry, but standards are what build a lasting practice.

Why Now

For tax professionals who want independence, there’s never been a better time. Clients are open to virtual relationships, software does the heavy lifting, and networking options abound. You can even start a small practice on the side before making the full leap.

For me, starting my practice meant I could design work around my strengths: explaining complex tax concepts and blending compliance with an empathetic understanding of financial behavior. I didn’t have to choose between tax consulting, education, and financial therapy—I could combine them. That combination is what makes the firm mine.

If you’re considering your own leap, know that you don’t need a corner office or a big staff. You need focus, the right tools, and the willingness to show up for your clients. And with the average CPA partner now in their 50s, the opportunity to step in and grow your own firm is only going to expand.

This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., the publisher of Bloomberg Law, Bloomberg Tax, and Bloomberg Government, or its owners.

Author Information

Michaele M. Esdale, a certified financial therapist, is founder and CEO of Fintuition Advising in Charlestown, Mass.

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