Many new tax preparers try to build their client base by purchasing an existing practice. There are many questions that you must ask if you are thinking about buying an existing tax practice.

Are the clients older? Is the practice growing? Is it a good mix of business and individual tax returns?

Think about the TYPE of client you are trying to attract. Do you want and older, stable client, retired, perhaps, so you can offer financial planning and securities? Or do you prefer a younger client, with children, so you can encourage referrals and small business growth? Do you prefer a client base of mostly small business entities?

Schedule C businesses, or S Corps? How about some C Corps thrown in?

You must also find out about the average return fee, and how aggresive the preparer was. The clients may not be happy when they find out that you aren't as comfortable with their aggressive deductions.

Ask the seller about the history of his practice, the reason for the sale, and the hours that he or she normally worked. Don't be shy. And if you feel that the seller is evasive, it might be a sign that it's time to walk away.
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