Phoebe Roberts, EA wrote:
- quote -

Then there are companies that lease large office space,
provide secretarial, etc., and sublease it on an as-needed
basis. For example I can have an office at a specific
business location where they receive my mail and may or may
not answer my phone. I pay a fairly modest monthly fee for
that. If a client wants to come buy, I can get an office
for that purpose by paying an additional per-hour fee.

Stu

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

We seem to only be hearing from those who feel negatively
about having a home ofiice. Someone (and I guess it's me!)
needs to show the other side.

I have always had a home office, ever since I started my
practice 25 years ago. At one point, I did have to rent an
office in which to see clients because my live-in partner at
the time hated coming home and finding strangers (my
clients) in the living room. But, even then, I've always
done all my work in my home office and had employees doing
their work there too. When I decided to move about 10 years
ago, I looked at about 150 houses until I found one that met
all my requirements, most importantly a totally separate
downstairs with plenty of room for 2 employees and myself.

I've never had a client show up unannounced or without an
appointment. Maybe that comes with living in a big city
instead of a small town.I have a table outside the front
door for clients to drop off their tax materials and pick up
their completed returns (if they don't want to do it via
mail) so I never feel intruded upon.

I love working at home for many reasons. It's a relaxing
place to meet with clients, I can make my work environment
exactly as I want it, I can take breaks whenever I want to
sit in the sun or do something personal (or something
exciting like the laundry!), I don't have to get dressed up
except when I have client appointments, it's almost always
quiet, there's plenty of client parking, and I have no
commute. Also, I'm a night person (writing this at 2:30am)
so no worries about "staying late at the office."

My point? If one chooses to do so, it's entirely possible to
have a successful home office tax practice by setting
boundaries for clients.

Jan Zobel EA, (Oakland home office
and a rented office in San Francisco)

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

Harlan,

Do like my former boss did: park in back of the building
where nobody can see you. He wasn't above parking in the
apartment complex behind us and coming in the back door.
<G
Hope you're not getting blown away down there by
Ivan the Terrible.

Carol
My mind not only wanders, sometimes it leaves completely.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Ed Zollars, CPA wrote:

- quote -

Wish I could walk. But no matter which of two blue cars I
drive to office, clients do know when I'm there, too.

- quote -

An associate/colleague/friendly competitor asked my advice
years ago. Actually she was seeking my permission to open
an office in same strip since my landlord said I'd have to
approve. Anyway, she said she'd just have to operate from
home and although I strongly counseled against that she did
anyway. To this day she has regretted it.

ChEAr$,
Harlan Lunsford, GC and EA n LA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Gene E. Utterback, EA wrote:

- quote -

The best setup I ever had in this regard was a house with a
garage that had been converted into a recreation room. It
had its own entrance plus an adjacent bathroom. No need for
clients to ever go into or through my personal living space.

However, this of course did not prevent people from showing
up unannounced. After I split from there I set a firm rule
of NO CLIENT VISITS. If necessary to have a face-to-face
meeting, I go to the client's home or office. This is a
trade off that must be considered when going this route.
Although you will "save" the cost of a rented office, it
will "cost" you the travel time, etc. Also, there are some
potential clients who won't go with a "home office"
practitioner.

MTW

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Ed Zollars, CPA wrote:
- quote -

Some times I park in an out of the way part of the lot and
walk to my office. If clients call me at home for a non
emergency, and how many real ones d we deal with, I tend to
lose the message!

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Dick Adams wrote:

- quote -

That's the route we take, too. Now and then we'll have
someone come by here, but for the most part, we go to our
clients. Our bank also has a large conference room
available to us for client meetings.

- quote -

Around here, we say "If a man answers the phone, tell him
you'll call back and leave a message on the answering
machine."

Phoebe

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

how funny! I participate in a medical transcriptionist
board (or three) and they complain about how people think
that they don't work because they're at home. When I worked
at home, I found it to be your way--people (clients) think
you're working just because you're home.

Carol
My mind not only wanders, sometimes it leaves completely.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Arthur L. Rubin wrote:

- quote -

....which is why I never do that. <g> Go to the client's
place (and deduct the mileage!).

MTW

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Arthur L. Rubin wrote:
- quote -

In our area a professional practice is permitted in a
residentially zoned area but is limited to 25% of the
building's area. Additionally no more than two client
vehicles may be parked at or on the property. This is a
holdover from the days when most MDs and DDSs would practice
in their home.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Gene E. Utterback, EA wrote:

- quote -

I would see that as a major problem as well. My home is
actually a few blocks from my office and I find that works
well for me. I can "retreat to home" to work if I want
privacy and to not be disturbed. I long ago discovered in
the office that clients will tend to drop by or call in if
they believe you are in (it's amazing how many know what
vehicle I drive and seem to have nothing better to do but
drive by our parking lot--another reason why having a home
nearby helps--I can walk in and hide the fact I'm in
<grin> ).

I suspect that if I actually met clients at my home and
conducted business from there, that I'd have the same
issue--clients "dropping by" at all times of the day and
night. At the very least, I think a place away from your
home to meet clients is a minimum requirement. --and,
obviously, an office gives you that.

--
Ed Zollars, CPA
Phoenix, Arizona

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Gene E. Utterback, EA wrote:

- quote -

I have always had a home office. But then I did not have a
tax practice and all of my clients are corporations. But
there are still problems. My first wife's mother would say
"Well as long as you're home, you can watch the kids while
we go shopping." I'll spare you the dialogue that followed.

Susan and I have never had a problem with it. And I always
had meetings in client offices.

Back in the days when people knew what punch cards were and
serial printers were a technology break through, I had a
client who had a quarterly 600 page of report at 10 pages
per hour. Fortunately we lived on the first floor.

Now my only problem is to tell clients that leaving messages
with my sons is a suboptimal strategy.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Wayne Brasch wrote:

- quote -

Meeting clients in your home may violate zoning or business
license rules.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -


How much you need, or want, to spend will be determined by a variety of
factors. These include, but are not necessarily limited to:
1 - your geographic location - space in downtown USA will cost more than
space in the boonies;
2 - how much business you think you'll do;
3 - what type of clientele you want to work with - do NOT underestimate this
item.

At a minimum you will need something that resembles an office. Many of my
colleagues will suggest you work from home to keep costs down. I disagree
with this most vehemently. I had a home office when I first started and it
was a fiasco. Most homes aren't built or set up for real home offices and
even when they are they can be problematic. I had clients dropping by at
all hours, any day, without bothering to call ahead. If I was "out of the
office" cutting grass or having a cookout, it mattered not - they felt free
to simply ignore the CLOSED sign on the door and either come to the front
door of the house or walk out in the yard and start to conduct business like
it was no big deal. If my office phone rang, I could hear it and if I
didn't answer it, many clients would simply dial my home number. Them
seemed to think that since my office was in my home that if I was home at
all that I must be working. I swear that before I try to run another
business from a home office I will eat from a dumpster and shop at Goodwill.

If you look around your area you should be able to find some suitable office
space relatively cheaply. Consider sharing an office with another
professional - but not another accountant, that is a recipe for trouble.
Many attorneys, real estate agents, and other professionals may have more
space than they need and they may be willing to share. Also, check for
"Condo Office Space" - typically an entire floor of an office building will
be "condo'd out". This is where several professionals will share a common
entrance, conference room, bathrooms, and frequently a receptionist and
secretary. These arrangements will frequently appear to cost more per foot
than a standard lease, but they almost always include utilities, except for
phone, common area maintenance, taxes and other things. For a newcomer,
this can be very beneficial. You get a real live person who will answer
your phone with your name, the use of a conference room and the appearance
of being much bigger than you really are. You get a professional address
and you can frequently move to a different office within the complex as your
business grows. I have seen these spaces rent for as little as $450 per
month for 200 square feet.

Consider the type of client you want to serve. This will impact where you
want to set up shop and how much technology and software you'll need. If
you are going to be doing a lot of EIC work, which I do NOT recommend
looking for, consider using a software provider that offers RALs and bank
products. Most EIC clients get more back than they paid in and are very
interested in the rapid refund programs. These returns tend to be simpler
so less sophisticated software will work easily for you.

If you plan on targeting high end, high net worth clients with complicated
returns (note we have several clients who have numbers of EVERY income line
on page 1 of Form 1040) then you will need more sophisticated software. And
if you are going to be preparing multi state returns (our office is within
walking distance of the U. S. Naval Academy so we see quite a few
non-resident returns) you'll need software that will handle this as well. A
good starting point for you might be to use one of the higher end software
packages on a Pay Per Return basis. This gives you access to great software
at a reasonable price, then as you expand and hit the break even point,
convert your usage to unlimited rather than PPR.

When it comes to furniture, we get all of ours from a local office
liquidator. These guys go in and buy entire buildings or furniture. Much
of it is junk and gets thrown away, but a surprising amount is very good
considering the source. And the price is impossible to beat - we paid
approximately 30% of the cost of new furniture and we have oak and mahogany
desks. We've also gotten bookshelves and copiers that were in great shape
for much less than we expected.

When you shop for computers try to remember that you are not a gamer. You
don't need the latest and greatest machines available. We generally buy 1
generation old when it comes to computers - can anyone really tell the
difference between a 2.2 and 2.5 GHz machine, other than the price which can
be significant. Use this savings to buy more ram - as much as you get in
the machine - a larger hard drive and a dual monitor video card. This
machine shouldn't cost more than $1,000 to $1,200 or so.

We use as much technology as we can. For example, we use WinFaxPro instead
of a fax machine. We also use Adobe Acrobat Pro 6.0 and print at least our
copy of documents in a digital format. We offer the delivery of the
client's copy of their return along with a copy of all of their documents to
them on a CD-ROM and we file as many returns as possible electronically.
This has cut our printing costs by about 80%. Though it did add the cost of
a decent scanner. The digital conversion has not only saved us a ton of
money, but it lets us keep clients who move away. Now instead of that slow
costly FedEx delivery that won't get there till tomorrow and costs $15.00,
we can e-mail a copy of the return. Using Adobe and WinFaxPro, when a
client calls and needs a copy of one of their documents we can pull it up in
Adobe and print it to the WinFax - no files to hunt down, no papers to
shuffle!.

Good luck,
Gene E. Utterback, EA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

In my area (Atlanta) you're probably looking at $20,000 at
least. I would imagine New York would be considerably more.
The computers are going to be in the neighborhood of $1500
- $2000 each (for top of the line computers with XP Pro
installed); the tax software is going to be another grand or
so; office furniture does not come cheap nor do the
utilities, marketing, advertising, Internet, DSL (which you
will need if you're going to e-file) or supplies. Then there
is the lease.

And you're only going to do this for tax season? Only
through April? Or through the extension deadline/s?

Carol
My mind not only wanders, sometimes it leaves completely.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"Corwin, Prince of Amber" <RickBryan[at]rcn.com> wrote:

- quote -

Consider working from your home thereby keeping costs down.

Wayne Brasch, CPA, M. Taxation

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

Work on your spelling Rick. 11 years ago, I set up a
business on $200 cash, two used computers, a used copier I
talked myself into and a $1000 tax program. Since we owned
the PCs anyway, I had $1200 out there. 11 years later, I
spend a good amount on rent, PCs, help, etc. Just remember,
this is one business that inventory is not necessary and you
can do it on a shoestring and let it pay for itself.

Helen, EA in PA
50 miles, 3 days, 1 cause - Multiple Sclerosis Challenge Walk for the Cure
October 1 to October 3, 2004
Donate on-line at www.msandyou.org

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Corwin, Prince of Amber wrote:

- quote -

In addition to the investment in furniture and computer
equipment you need cash for your living expenses to cover a
year or more of low levels of income until you build you
client base.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Corwin, Prince of Amber wrote:

- quote -

It depends on what you want.

If you do a home office (mostly free, but you'll have
mileage to offset), one computer (maybe $1500), a laser
printer (maybe $1500), a piece of plywood on milk crates for
a desk or a fortuitous garage sale desk (maybe $100), pay
per return software ($200 deposit), a case of paper and
miscellaneous office supplies (maybe $500), and word of
mouth advertising (you must know people who know you do
taxes; otherwise, how do you know enough taxes to go out on
your own), you're under $5,000.

If you want prime real estate in a big city center and TV
ads, you could hit $50,000 before you knew it.

Phoebe

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Dfficult question I know with a lot of unanswered variables,
but supposing I wanted to set up for 2005 my own tax
preperation business without buying into one of the
franchises. Leasing a location, computers, the software,
marketing and advertising, etc. Am I looking at a $10,000
to $15,000 investment, or closer to the $50,000 range?

Rick Bryan
New York, NY

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->