In the tax industry, it’s easy to feel like the next big step is becoming a Service Bureau—offering branded software, managing a network of preparers, and reselling licenses. And while that path can be incredibly rewarding, it’s not the only way to build a profitable, successful tax business.
Let’s talk about why you don’t have to become a Service Bureau to thrive, especially if you’re an independent EFIN Holder or solo preparer.
What Is a Service Bureau Anyway
A Service Bureau is a middleman between tax software companies and individual preparers. They resell software, offer branding, support, and sometimes onboarding and marketing services. It’s a great option for those looking to scale and manage a team—but it’s not the only path to success.
You Can Still Earn Big Without Becoming a Service Bureau
Here’s how EFIN Holders and solo tax professionals earn solid income and grow their businesses—without taking on the responsibilities of a Service Bureau:
1. Keep 100% of What You Charge
When you’re an EFIN Holder using the right software provider, you’re not splitting your revenue with anyone. That means every dollar you earn from tax prep fees is yours to keep—no middleman, no sharing.
2. Add Back-End Revenue Streams
Even without managing other preparers, you can boost your income by:
- Charging bank product fees (Service Bureau and Transmitter add-ons)
- Offering Audit Protection and ID Theft Protection as upsells
- Marking up ancillary services, like document preparation, notary, or bookkeeping
3. Automate and Scale Smart
With today’s tech, you can operate like a team of 10—even if you’re working solo:
- Use web-based software that includes e-signatures, mobile app access, and document storage
- Automate intake and communication with white-labeled client portals
- Track marketing and client growth using built-in tools
4. Grow a Team Later—On Your Terms
Just because you’re not a Service Bureau now doesn’t mean you can’t lead a team in the future. Start with a solid solo foundation, build client trust, and expand when you’re ready—not because you feel pressured to.
Success Is Defined by Impact, Not Size
Not everyone wants to manage multiple offices, provide support to other preparers, or deal with the logistics of running a Service Bureau. And guess what?
That’s OK.
Your success might look like:
- Working with 200 loyal clients year after year
- Earning 5 or 6 figures as a solo preparer
- Building a lifestyle-friendly business that allows you freedom and flexibility
- Becoming an expert in niche markets (truckers, self-employed, expats, etc.)
Do What’s Right for YOU
Whether you’re filing 100 returns or 1,000, what matters is profitability, peace of mind, and the quality of service you provide. Becoming a Service Bureau is a great opportunity for some, but not a requirement for greatness in the tax industry.
Focus on being a great preparer. Master your craft. Build relationships. Stay compliant. Stay sharp.
Success will follow.
Ready to grow your tax business your way?
We’re here to help you build a profitable, stress-free business model that fits your goals—Service Bureau or not.