[Anonymous]

I just started at a firm earlier this month. I want to do some taxes on the side but am afraid to ask the partners in case they say no. What are your guys thoughts? If you think I can go for it, how do i go about getting 30-50 clients without badgering my family or using my current firms name, or does that matter? I wanted to buy a small practice <$70k, but financially it wasnt really possible until now and I’m having trouble finding a practice for sale this time of year.

If i just gave any clients i got to the firm hiw does that usually work? I see no additional money from thise clients, right?

[Anonymous]

I guess it depends on the firm. I signed something that said I can't take my own clients. But even if I could, I'm so busy during tax season I wouldn't have time anyway. Since you just started are you sure you'll have the time?

If they didn't mention anything when you were hired or you didn't sign any paper work stating otherwise, I'd say you're fine and wouldn't even ask.

[Anonymous]

Three thoughts:

Your first year at a firm is not the time to start out in business for yourself. Wait till next year when you know better what to expect busy season to be like. Also, you'll be more marketable when you've got more experience so more answers. If someone asks you a simple question and you're stumped, you'll lose rep quickly, but after a busy season or two, you'll appear more knowledgeable and have more marketable experience to relate.

Buying a small practice will likely require a lot more time than a part-time around work thing, so for an around-work thing, just establish it yourself.

Getting clients without going through friends/family will require advertising (aka $$$). You can't get clients privately using your firm's name – or at least I'm pretty sure you can't. 😐 You could recruit clients for your firm using your firm's name, but unless you have an agreement that you get some bonus for doing so, then it won't be directly impacting your wallet. To get private clients using your firm's name would be an ethical violation, I'm pretty sure. Only way to get private clients without going through friends and family is to invest in advertising (or buy a business as discussed above, but that should be more than 30-50 clients), but advertising is pretty pricey.

[sdguy]

Is your main job working for a tax firm, or is it something different (corporate, or audit only).
Even if you didn't sign a non-compete, there is still a chance they would fire you for competing directly with them if they ever found out. It is most certainly a conflict of interest. Just a thought. Lots of people do it, and its a good way to get started, but just be prepared to be pushed out.

AUD: 83
FAR: 77
REG: 86
BEC: 86

[taxsage]

Dont do this while working at a public accounting firm your first year. Its a huge red flag that either you intend to leave, are an idiot for disclosing it, or are not dedicated to the firm. Personally i would put you on the “to go” list.

First off; if you do personal tax the employer would want you to bring clients to them unless they are to low end and the firm is at max capacity. If the firm is at max compacity then you do not have time for another job in the eyes of the firm. If you are at a typical public accounting firm you are really expected to spend all of your free time during busy season in the office or at the client(sad but true). Some call these long hours being a team player. Working on your own clients will put more hours of work on other people at most firms making you look like a person who is not a team player in the eyes of the partner.

If your at a firm with no tax department and your busy season hours are low during the tax season it may be ok at some point in time. However starting year one would still make you look undedicated to both audit and the firm.

There might be some opportunity to this if you work at a tax firm if all of these conditions exist:

1 The firm does not do personal returns and/or the returns do not meet the complexity or billing amount required by the firm
2 The firm does not have enough clients to keep there tax people busy during the core busy season and they still dont want your clients. I can see this applying to only a firm that pays overtime.
3 You have established a strong relationship with the partner of the firm

The politically correct way to start a tax business is to first leave public accounting as a full time hire. You can then either pick up seasonal work from a firm, do private tax accounting, or some other non public accounting job for your base pay. I would also like to mention that competing with your employer may create issues with your state accountancy board or the AICPA. If you have a noncompete you might end up being sued if your business eventually became successful.

[Author]

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