| Tax
Service Franchise
Most
Americans dread doing their taxes and put it off until the last possible minute.
That's when the tax service business goes into overdrive to get their customers'
taxes filed on time. The tax service industry tends to make 90% of their annual
revenue in just 80 days (during tax season of course). The
tax service industry can be quite lucrative which is why many people choose to
enter the business. However, the tax service business is dominated by a few key
players such as Jackson Hewitt, H&R Block and Liberty Tax so most people choose
to open a tax service franchise instead of opening an independent tax service
business. Owning a tax franchise puts you at much better odds
for success as the percentage of independent tax preparation businesses still
in business after 1 year is 62%, while for tax franchises is 97%. After being
in business for 5 years, only 23% of independent tax businesses are still in operation,
while 92% of tax franchises are successfully operating.
New Tax Filing Technology
There
are quite a few tax filing software out there competing with traditional tax service
businesses by offering lower prices. However, tax service franchises have adapted
and created their own software to get a piece of this emerging sector. The tax
service business is large enough to accommodate new competitors as the IRS predicts
the number of individuals filing income tax returns will grow 1.5% a year up to
the year 2008.
Which Tax Service Companies Franchise?
Jackson
Hewitt
Liberty Tax
H&R
Block
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