Trusted Return Tax Service

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Trusted Return Tax Service is a tax preparation and bookkeeping office in Georgia. We prepare individual and small business tax returns, keep books for small businesses and represent clients before the IRS and the state when there is a notice or an audit. We plan a friendly office with secure online document upload, evening and weekend hours in tax season and a year-round relationship, so clients have someone to call in March and in October.

Taxes are stressful, and mistakes are expensive. Free software works for simple returns, and many people and small businesses have self-employment income, rental property, a new baby or a notice, and want a person to check. Many tax offices open in January and vanish by May. A local office that is there all year, explains the numbers and stands behind its work earns repeat clients.

Here is what our numbers show. We expect about 1,000 individual returns, 100 small business returns and 280 bookkeeping, payroll and representation engagements in Year 1, which brings in sales of $396,600, growing to $1,317,498 by Year 5. We expect a loss of about $2,700 in Year 1 and a profit from Year 2 ($46,500), growing to about $254,500 by Year 5. Most of our income comes between January and April, so we plan carefully for cash in the off-season.

We need $105,000 in total. Of that, $41,500 is startup costs (computers, software setup, registrations, legal help, a sign and opening marketing) and the rest is cash to cover the months before tax season. I am putting in $30,000 of my own money, and I am asking for a $75,000 SBA loan.

I am Angela Rivers, the owner, an IRS enrolled agent with 11 years of experience in tax preparation and small business accounting. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Trusted Return Tax Service is a small, independently owned tax practice in Georgia, planned as a limited liability company (LLC). We will lease a small office of about 1,200 square feet in a shopping area, with parking and a private meeting room.

Our mission. To help individuals and small businesses file accurate returns, keep good records and understand their taxes.

What we believe. Tax preparation is a professional service. We follow the law, we do not promise refunds or inflate deductions and we explain what we file. We protect clients' information, and we keep working with clients after the filing deadline.

What we offer:
- Individual tax returns. Federal and state returns, including self-employment, rental income, investments, education and family credits.
- Small business returns. Sole proprietors, partnerships, S corporations and LLCs.
- Bookkeeping and payroll. Monthly bookkeeping, payroll and sales tax filings for small businesses.
- IRS and state representation. Help with notices, audits and payment plans, which our enrolled agent is authorized to do.
- Tax planning. A year-round review and estimated tax payments for clients with self-employment income.

Who we serve. Individuals, families, self-employed workers and small businesses within about 20 miles and across the state through secure online service.

What we do not do. We do not give legal advice or sell financial products. We do not make refund loans or promise refund amounts. We do not file a return we believe is wrong.

How we are run. I am the owner and enrolled agent. Seasonal preparers, an office administrator and a senior preparer and bookkeeper join us. A small advisory group of an attorney, a banker and another tax professional tells us what is working.

Where things stand today. We have a lease option, software quotes and a list of about 150 prospective clients, including 25 small businesses. Before we begin, our attorney will review our engagement letter and privacy policy, and we will register for preparer and e-file identification numbers.

Problem & Opportunity

Taxes are complicated, and the cost of getting them wrong is high. Self-employed workers face estimated payments and deductions they do not understand. Small businesses have payroll tax deadlines with penalties. Many people receive IRS notices that frighten them and do not know what to do.

The preparer market is uneven. National chains are expensive for what they deliver and often use seasonal staff. Some storefronts open in January and are gone by May, leaving clients with no one to call. Unscrupulous preparers inflate refunds, charge fees based on the refund and sign no returns. The IRS warns about these problems every year.

Small businesses often keep poor records until tax time, then pay more for a rushed filing. Bookkeeping and regular tax planning save money but few owners think of it.

For a new practice, income is seasonal. Most revenue arrives in about four months, and the other eight months must be covered by savings or bookkeeping and representation work. Software, security and insurance costs are largely fixed.

We want to be clear about what we know and do not know. Tax services are a steady need and clients return year after year. We will use the most recent numbers for our area in our final plan and will not overstate them. We do not know how many prospects will become clients, so our plan builds slowly and relies on bookkeeping and representation to smooth the year.

Products & Services

Trusted Return will prepare accurate returns, keep small business books and stay in touch all year.

How it works, step by step:
1. Intake. Clients upload documents through a secure portal or bring them in, and complete a short organizer.
2. Preparation. A preparer completes the return, a senior preparer or the enrolled agent reviews it and we explain the result in a meeting or a call.
3. Signing and e-file. Clients review and sign electronically, and we e-file the federal and state returns and confirm acceptance.
4. Bookkeeping and payroll. For small businesses, we reconcile accounts monthly, prepare financial statements and file payroll and sales tax returns on time.
5. Representation. When a client gets a notice, the enrolled agent reviews it, responds and negotiates if needed.
6. Planning. We meet with self-employed clients in the fall to plan estimated payments and deductions.
7. Security. We follow IRS security rules, use encrypted systems and keep a written information security plan.
8. Quality. We track error rates, notices after filing, on-time filings and client satisfaction.

Why this approach is strong. Clients want accuracy, explanation and a person they can reach all year. Bookkeeping and representation add steady income in the off-season.

Market Analysis

Who we serve: individuals, self-employed workers and small businesses.

Our primary group is households with self-employment, rental or investment income and families who want a professional to check their return. Our secondary group is small businesses with up to 15 employees. We will use the most recent IRS and census numbers for our area in our final plan.

How we sized our plan. We plan about 1,000 individual returns, 100 business returns and 280 bookkeeping, payroll and representation engagements in Year 1, growing to 2,600, 380 and 800 by Year 5. Our Year 1 prices are about $225 for an individual return, $540 for a business return and $420 for an engagement, rising about 4% a year.

Demand data. About 150 prospective clients, including 25 small businesses, have said they would consider us, which we expect to cover about a third of the Year 1 returns. We do not count on any one client.

We do not take every client. We decline anyone who asks us to claim something we cannot support.

Competitive Landscape

Other choices for taxpayers, and what makes us different.

- National chains. They have brand recognition and fees that can be high. We offer a consistent preparer and year-round service.
- Do-it-yourself software. It works for simple returns. We help when life is complicated.
- Other local preparers and CPAs. Many are excellent. We compete on price, communication and availability, and we refer large or specialized cases.
- Seasonal storefronts. They are present only in tax season. We are open all year.
- Free tax help programs. They serve lower-income taxpayers with simple returns. We refer eligible people to them.

What makes us different.
- An enrolled agent who can represent clients before the IRS.
- Secure online service and evening and weekend hours.
- Bookkeeping and planning all year.
- Transparent, written fees that are never a percentage of a refund.

What we do not claim. We are new. Established offices have long client lists. We plan to earn trust one return at a time.

Marketing & Sales Strategy

How we will reach clients.

Individuals. We will offer a free tax checkup in the fall, ask for referrals, place ads in community papers and online and put up a sign. We will keep a Google business listing and reviews.

Small businesses. We will meet owners through the chamber of commerce, networking groups, bankers, attorneys and insurance agents, and offer a free review of books.

Partners. We will exchange referrals with financial planners, mortgage brokers and real estate agents, and avoid anything that looks like payment for referrals.

Pricing. About $225 for an individual return, $540 for a small business return and $420 for a bookkeeping or representation engagement in Year 1, quoted in writing before we start.

Operations Plan

How the business will run.

Setup (the 2 to 3 months before the first tax season). We will form the LLC, get the preparer tax identification number and e-file authorization, set up tax and accounting software, write our information security plan, buy errors-and-omissions insurance, hire and train seasonal preparers and open the office. We will not file a return until the registrations are in place.

The office. About 1,200 square feet with a reception area, two preparer desks and a private meeting room. Rent is $2,000 a month in the plan.

Staffing. In Year 1: I serve as owner and enrolled agent. Three seasonal part-time preparers and an office administrator work with me. A senior preparer and bookkeeper joins in Year 2, and we add seasonal preparers each year. Seasonal preparers are employees, and our cost per return counts preparer time and software.

Quality and ethics. Every return is reviewed by a second person. We follow IRS due diligence rules for credits, sign every return as the preparer and keep records for at least three years.

Security. We use encrypted systems, multi-factor authentication, locked files and a written security plan, and we train staff.

Payments. Clients pay at filing or by monthly invoice. Business clients pay about 22 days after we bill.

Insurance. We carry errors-and-omissions, general liability, cyber and workers' compensation insurance. Insurance is about $4,000 a year in Year 1.

Management & Organization

The people who will run Trusted Return.

Angela Rivers, owner and enrolled agent. An IRS enrolled agent with 11 years of experience in tax preparation and small business accounting, including four years supervising preparers. She leads client relationships, review, representation and finance. (Replace this paragraph with your own background.)

Seasonal preparers (part-time). Prepare returns from January to April under review.

Office administrator. Handles scheduling, intake and documents.

Senior preparer and bookkeeper (from Year 2). Reviews returns and manages bookkeeping clients.

Outside advisors. An attorney, an accountant, an insurance broker and a free mentor from SCORE or the Small Business Development Center.

Staff pay in this plan is a full year per person: owner and enrolled agent $70,000, seasonal preparer $12,000 each, office administrator $34,000 and senior preparer and bookkeeper $52,000. Replace them with the pay you can offer where you live.

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (2 to 3 months ahead): collect at least 100 prospective clients, get software and lender quotes, apply for the preparer and e-file numbers, form the LLC, get an EIN and open a business bank account. Do not file a return until the registrations are in place.
- Year 1: about 1,000 individual returns, 100 business returns and 280 engagements; $396,600 in sales and a loss of about $2,700.
- Year 2: about 1,400 individual returns and a senior preparer; $625,248 in sales and a profit of about $46,500.
- Year 3: about 1,800 individual returns; $856,625 in sales and a profit of about $138,200.
- Year 4: about 2,200 individual returns and an additional administrator; $1,081,884 in sales and a profit of about $159,700.
- Year 5: about 2,600 individual returns; $1,317,498 in sales and a profit of about $254,500.
Growth depends on winning and keeping customers, so treat the later years as goals, not promises.

What we check every week: returns filed, average fee, error and notice rate, bookkeeping clients, off-season income and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $105,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $41,500, listed item by item in the Startup Costs section: $11,000 for computers, scanners, printers and a secure network; $3,000 for office furniture and a client waiting area; $3,000 for tax software setup and e-file registration; $1,500 for preparer registrations, e-file authorization and bonds; $4,000 for attorney and accountant: engagement letters, privacy policies and setup; $5,000 for exterior sign, brochures and a website with secure document upload; $4,000 for office lease deposit and first month of rent; $6,000 for opening marketing before tax season; $4,000 for staff training, background checks and the first insurance payments.
- The cash the business uses before it breaks even, about $6,622: because most income arrives in four months and costs run all year.
- A cash cushion of about $52,300: three months of Year 1 operating costs.
- Together that comes to about $100,422, rounded up to the nearest $500: $100,500.
We are raising $4,500 more than that, $105,000 in all, to cover the loan payments and the extra cash the early years take. With this funding, the lowest year-end cash balance is about $43,200, at the end of Year 1.

Where the money comes from:
- My own money: $30,000.
- SBA 7(a) loan for startup and working capital: $75,000.

Kind of funding we are looking for. An SBA 7(a) loan through a bank or community lender, plus our own equity. Lenders for a tax practice look at the owner's credentials, the client list and a cash plan that covers the months outside tax season.

How we will pay it back. We expect a loss of about $2,700 in Year 1 and a profit of about $46,500 in Year 2, then a profit of about $138,200 in Year 3, a profit of about $159,700 in Year 4 and a profit of about $254,500 by Year 5. With this funding, the business has money in the bank at the end of every year of the plan. The loan is planned at sba microloan for startup and working capital at 12.75% over 7 years, about $1,354 a month. That is about $1,354 a month in all, and it is already included in our cash flow. We chose these as cautious planning rates; ask the lender for the real rates, which may be lower or higher.

What we are offering the lender: a personal guarantee and a lien on business assets.

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: start from a home office with online service and seasonal help, which lowers startup costs.
- Phase 2: once you have a client base and bookkeeping income, open an office and hire staff and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume, enrolled agent card, CPA license or other credentials.
- A personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- Your preparer tax identification number and e-file authorization, or proof that you have applied.
- Software quotes and your written information security plan.
- Insurance quotes or proof of insurance.
- Your engagement letter and privacy policy.
- Your list of prospective clients.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Individual Tax Returns (per return): about $225 in Year 1, rising to $263; about $95.00 in direct costs, rising to $109.01; about 1,000 in Year 1, growing to 2,600.
- Small Business Tax Returns (per return): about $540 in Year 1, rising to $632; about $240.00 in direct costs, rising to $275.41; about 100 in Year 1, growing to 380.
- Bookkeeping, Payroll and IRS Representation (per engagement): about $420 in Year 1, rising to $491; about $190.00 in direct costs, rising to $218.03; about 280 in Year 1, growing to 800.
- Individual returns about $225 each in Year 1 with about $95 in preparer time, software and e-file costs; small business returns about $540 with about $240; bookkeeping, payroll and representation engagements about $420 with about $190, rising about 3.5% to 4% a year.
- Pay (a full year, per person): owner and enrolled agent $70,000; seasonal tax preparer (part-time) $12,000; office administrator $34,000; senior preparer and bookkeeper $52,000.
- Other yearly costs in Year 1: office rent and utilities $24,000, tax and practice software subscriptions $12,000, errors-and-omissions and general insurance $4,000, marketing and referral program $10,000, licenses, continuing education and dues $3,000, accounting and legal $3,600, phones, postage and supplies $3,600, payroll taxes and benefits (staff) $9,000. These grow between 5% and 12% a year.
- Startup costs and equipment ($41,500 in Year 1, then $2,000, $2,000, $3,000, $3,000) are spread evenly over five years in the plan's books.
- Customers and payers pay about 22 days after service. Income tax at 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs