TAX PREPARATION SERVICE BUSINESS PLAN

I. Executive Summary

Company Description

The company name is not provided. We are a U.S.-based tax preparation and advisory firm set to launch in 2026. We combine licensed professionals (CPAs and Enrolled Agents) with a secure cloud portal and an on-site office to deliver year-round tax prep, compliance, and strategic tax advisory. Our model centers on trust, accuracy, and proactive client engagement using technology to speed workflows and secure data. One clear fact: target Year 5 EBITDA is $3,466,000.

We serve individuals and small businesses across the United States, focusing on clients who want high-touch professional advice plus digital convenience. Core activities are client intake, tax return preparation, tax planning, and ongoing advisory delivered through in-person meetings and encrypted cloud portals. Short-term goal: launch operations and build a repeatable client onboarding process in 2026. Long-term goal: scale operations and margins to reach the Year 5 EBITDA target while maintaining quality and security. One-liner: primary market is U.S. individuals and small businesses seeking combined CPA-level service and secure digital access.

Problem

Individuals and small businesses face a complex, frequently changing U.S. tax code that causes time loss, financial anxiety, and missed savings. High risks of costly filing errors and missed deductions are widespread for entrepreneurs, multi-entity owners, and clients with cross-border issues.

Current market options are largely reactive—one-time filing services or generic software—so clients lack proactive, year-round tax guidance that models corporate structures and international income. This gap leaves penalties, audits, and suboptimal cash flow unaddressed.

The business targets clients seeking proactive advisory and aims for a Year 5 EBITDA of $3,466,000 to demonstrate the scale and economic viability of solving this unmet need.

Solution

U.S. taxpayers and small businesses face rising tax complexity, time losses, and penalty risk, while traditional providers remain reactive. Our firm delivers year-round, proactive tax preparation and advisory across Form 1040, Form 1065, and Form 1120/1120S filings to ensure compliance, reduce liabilities, and save client time.

Core services include individual, partnership, and corporate filings, secure client portals, quarterly estimates for freelancers, high-net-worth planning, and expatriate guidance; these features combine with professional tax software to shorten turnaround and control cost. We target breakeven by August 2026.

Mission Statement

Our mission is to simplify the complexities of the U.S. tax system for individuals and businesses through expert guidance, personalized advisory, and practical technology, ensuring compliance and optimized outcomes. We commit to building lasting relationships based on trust, accuracy, and a proactive approach to financial health, while empowering clients with clear knowledge and actionable strategy. We strive to be the most trusted partner in our clients’ financial journeys.

Key Success Factors

Success depends on professional expertise, technology, marketing efficiency, utilization, and cash resilience.

• Allocate 3.5% of revenue to continuous education to keep professional expertise current.
• Invest $104,000 in technology infrastructure to ensure operational efficiency and data security.
• Reduce CAC from $180 to $120 through effective marketing while scaling the budget.
• Increase billable hours from 2.5 to 4.5 per customer to expand gross margins.
• Maintain a $778,000 cash reserve to bridge operations to the August 2026 breakeven point.

Financial Summary

Key financial milestones and returns for the tax preparation service at launch in 2026.

Financial requirements: minimum cash of $778,000 (minimum cash month: Aug-26). The firm reaches breakeven in Aug-26, achieves full payback in 22 months, and posts an IRR of 0.09% with a sustained ROE of 6.97% under disciplined scaling.

Outlook: breakeven within the first business year and steadily improving profitability through 2028.

Funding Requirements

We require $1,136,000 to launch—covering capex, working capital, marketing, and first-year payroll—targeting breakeven in Aug-2026, Year 1 EBITDA of -$51,000, Year 2 EBITDA of $367,000, and full payback in 22 months.