How much can you make in Taxes and Insurance in the USA?
Is it a good business to become a tax preparer or insurance agent?
Spectacular earnings of approximately $93,000 can earn your combined Tax and Insurance business.
Check out the updated article on how much you can earn in insurance in the United States.
Two of the best professions that exist in the United States are -without a doubt- the tax preparer and/or insurance agent. To find out how much you can make in the Taxes and Insurance in the USA, read on to the end.
Many businesses today are set up in a combined way. That is to say, they consist of an insurance agency, to offer car insurance, health insurance and other types of insurances and at the same time, they do the taxes for the clients of that agency.
It is fabulous, since the most difficult thing to obtain in business is a powerful database and, by offering both services, you optimize resources.
Now, is it worthwhile to offer different types of insurance and do taxes at the same time?
How much can you make selling insurance and preparing taxes?
It is important that you take into account two elements before knowing how much you can make with these activities: TAXES AND INSURANCE IN THE USA ARE MANDATORY.
First, there is no optionality in the case of deciding whether or not to do your taxes every year or to buy car insurance. Furthermore, since 2014, health insurance (through the HealthCare Law) has been made mandatory. Therefore, being required by law, you would have more prospects to sell them your services.
You literally have around 320 million people, the inhabitants of the United States. With this immense potential, you have more than enough prospects to succeed.
How much can you make in Taxes and Insurance in the USA?
Tax Return Business
Personal Taxes
There is no average of how much you can make or how much you can charge each person who needs to do taxes. Normally, tax preparers charge according to the complexity of the work to be done. Moreover, some professionals take into account the dependents on that return and other causes.
To find out how much can be made in Taxes and Insurance in the USA, there is no other alternative than to create your own business.
However, keep in mind the following, both in Taxes and / or Insurance you earn by volume of customers. Of course, since there are so many people who need your services, it is not wise to charge someone $300 dollars and profit from only 1 when you can actually make $40 from each one and still have the opportunity to sell them other products, for example, insurance.
So, trying to find an average, suppose it is tax season and you have only 50 customers. And you charge them an average of $50 x 50 = $2500. Of course, this sample is just for 50 clients, but I don’t think you will be satisfied with this case, just as I don’t think you will charge them all the same.
So it is likely that this figure could increase to around $4000 or more. And this is only contemplating one of the possibilities of income doing taxes: the personal taxes.
Corporate Taxes
But why limit yourself to only doing personal taxes when you can do corporate taxes as well?
If you are thinking about studying for personal taxes only, it may provide you with a certain level of income, but keep in mind that there is yet another income source waiting for you. In fact, many clients -for whom you do personal taxes- will ask you if you can do their corporate taxes.
This is the only way you can know how much is made in Taxes and Insurance in the USA, by increasing the potential of your business.
Most of the insurance agents I know -who are independent- have corporations, just like truck drivers, dredgers, real estate agents and others who have corporations where they are the only members or the owner with employees.
The income for doing the taxes for corporations do not fit within the range of $50 as the personal ones. They can be from $200 to $1000 which means that with only 20 corporations you can do more than $8000 or $10000.
How much can you make in Taxes and Insurance in the USA? Find out what you can earn
How much do you make in Taxes and Insurance in the USA? Be a tax preparer and work in insurance
Corporate Accounting
You cannot only make money doing corporate taxes, but also by doing the monthly accounting.
Another important element to keep in mind is that businesses need to keep the books and not have them accumulate. Therefore, you may be the one in charge of doing so. For this service, you can charge a minimum of $75 to $150 per month.
If it is a small business, a little more complex, you can charge $250 to $300. If you only have 10 small corporations and charge them only $100, that is a monthly residual of $1000. 1000 times 12 is 12000 a year in additional income for your tax business.
This, of course, is not the only income you can earn. There are other tax related activities where you can make additional income. For example, a client who has problems with the IRS and you need to work with them to correct those “mistakes”.
Creating corporations is another income you can earn, renewals also count as well. Tax extensions, etc, etc, etc.
You can know how much can be made with a Tax and Insurance industry in the USA, by diversifying your business.
These are just some examples of activities you can perform that can offer you a certain level of income and the data we provide is very conservative. We will call these: additional business income. Suppose you get about $15,000 a year from them.
Approximate Table of Income with your Tax Business
Income from your business doing personal taxes: $6000
Income from your business doing corporate taxes: $8000
Income from your business doing accounting for corporations: $14 000
Other income: $15,000
TOTAL: $43, 000
This income of $43,000 per year would not be bad for your tax business, considering that you are just starting out. Each year you should increase the number of clients and the possibilities of growth. Becoming a notary, which is not difficult, could also make it possible for you to increase all this income.
How much can you make by combining your tax business with the insurance business?
Nevertheless, let’s talk about insurance. This is a great opportunity to sell insurance. As we explained before, auto and health insurance are mandatory. So you can get a great income from them as well.
Even though it is not known if the new administration will leave in force the HealthCare Law, known as Obamacare, and if they will remove the obligation to have insurance in the United States, there is another insurance that will continue to be mandatory: auto insurance.
How much can you make in Taxes and Insurance in the USA?
Insurance Business
Auto Insurance
It’s no secret to you how much you pay for auto insurance, because you may also be a driver, a car owner. In order to quote a car insurance, different factors are taken into account, among them there are 3 fundamental ones: personal data of the driver, data of the vehicle to be insured and the type of policy desired.
However, regardless of these aspects, everyone must pay monthly premiums from $70 to $300 or more. In order to know how much can be made in Taxes and Insurance in the USA, you have to try different alternatives and this is one of them.
The insurers can pay you between 10% or more of the policy, depending on the type of policy and the insurer.
As in the previous cases let’s draw an average. Suppose you manage to sell only 30 car insurance policies per month and they provide you with a profit for your business of 10%, which can be represented by an average of $30 per month. 30 customers x $30 monthly, equals only $900, but it builds up in a year to $10 800.
This is just auto insurance revenue, if we talk about business insurance and / or home insurance the figures increase considerably. But let’s leave it at around $11,000 per year. Let’s look at other insurances.
Health Insurance
Health Insurance, Medical Insurance, Medical Plans whatever you want to call it, is a tremendous opportunity to make wonderful income in your business.
It is a fantastic opportunity that -while you are helping people solve their problems- you are making money. If your goal is to find out how much can be made in Taxes and Insurance in the USA, you will soon find out.
For example, by selling insurance policies through Obamacare, you can create a very lucrative income. Of course, the money earned is also by volume.
Normally, you can earn a monthly residual of $2000 to $6000 per month. Those $2000 can be made with only 100 clients during the entire open enrollment period, which is not difficult to achieve.
Remember that you already have the clients you do the taxes for and that database is crucial to sell them all other products that you may have. Here you would be making $24,000 a year, which is not an insignificant figure.
You can not only concentrate your efforts in selling insurance policies through the insurance market and Obamacare. There are private insurance companies that can also be a wonderful source of income, although many prefer Obamacare because of the federal help to pay for their health insurance.
How much is made in Taxes and Insurance in the USA. Wonderful Earnings
Medicare Plans
Every day in the United States, 10 000 people reach the age of 65 years old. Calculate how much medicare insurance you can sell with an agent license.
Medicare and Obamacare both have open enrollment periods, and only during these times can beneficiaries change HMOs. However, those who reach that age can do so at any time during the year automatically.
The income ranges around the $200 or more that insurers pay you to sell their plans. Calculating an average of only 50 a year, we are talking about $10,000.
That’s not even talking about renewals, because for every person who renews the following year is another source of profit for your business.
So, how much you can make with Taxes and Insurance in the USA is a perfect combination of unique and residual income. But let’s continue with the other products.
Life Insurance
This is the jewel in the crown of insurance. Life insurance comes in different forms. Whole or whole life insurance, term life insurance, life insurance with savings, life insurance with living benefits, life insurance for final expenses, the list is endless.
There is no doubt that -in the Spanish market- it is more difficult than in the English market to sell life insurance.
Unfortunately, Hispanics still don’t understand the need for life insurance, but that’s what you are there for, to convince them. In the end it is for their own good and that of their family.
Life insurance policies are normally paid on an annualized basis; meaning, the first year’s premiums go to the agent, so suppose you can sell only 30 life insurance policies a year and each policy represents $700, a profit of $21,000. Isn’t that fantastic?
Approximate Income Table in your TAXES Business
Income from your business doing personal taxes: $6000
Income from your business doing corporate taxes: $8000
Income from your business doing accounting for corporations: $14 000
Other income: $15,000
TOTAL: $43, 000
Approximate Table of Income in your INSURANCE Business
Income from your business selling Auto Insurance: $11,000
Income from your business selling Obamacare: $24 000
Income from your business selling Medicare: $5000
Income from your business selling Life Insurance: $10 000
TOTAL: $50, 000
TOTAL BUSINESS PROFITS COMBINED TAX AND INSURANCE: $93,000 * * DATA PROVIDED ARE APPROXIMATE.
*the data provided are approximate, it depends on your sales and customer search skills. Therefore, earnings could be higher or lower than these values.
Now, probably with this article you will have no doubts about the great growth possibilities when you devote yourself to the tax and insurance activity. There are countless examples in the community of agencies that do it.
Best of all, you are creating a profession for life. You are getting first-hand knowledge of how much is made in Taxes and Insurance in the USA.
How can you become a tax and insurance preparer?
We don’t want to “sell” you on the idea of becoming a tax preparer, personal tax preparer, corporate tax preparer and insurance agent. There is nothing easy about it. You have to study and prepare yourself, but I can ask you, don’t you think it is worth the sacrifice?
We are not talking about a 6 year long college degree. You can get both business accreditations in less than 3 months. In order to learn how to be a tax preparer you can enroll in a tax school, if it’s even better, haha. This is the first step to start learning everything related to taxes in the USA.
Then you must apply for the certification with the IRS. This is a procedure, it is not an exam, just to get the PTIN NUMBER that certifies that you can sign in an authorized manner by that entity any tax return of your clients.
In insurance, the first step is to pass the insurance pre-licensing course in a certified school, this is mandatory by the state. Then you must take the state exam and not long after you will get fingerprinted and your background checked to show an attitude consistent with the profession for which you are applying.
What could be the total cost of becoming a tax preparer and insurance agent in the USA?
Spending less than $1500, you could obtain the tax course, insurance course and get your licenses. Keeping in mind that you must take the auto license, the 220, the health and life 215 and the personal and corporate tax courses.
Imagine an investment of only $1500 to obtain $93000 per year. There are no doubts at the time of investing, you will have the information of How Much is made in Taxes and Insurances in the USA.
It is true that by renting a commercial space, a physical place in order to consolidate your business, would demand expenses, but no matter how many they are, they should not reach $10,000 per year, between rent and other fixed expenses.
Of course, if you do not rent a big place, you should start with a small one that allows you to afford it.
Therefore, making the smart decision to engage in tax and insurance is by no means a foolhardy venture. Everyone needs to do it, everyone should do it. It is not optional.
You can take the first step today and believe us, in less than 3 months, taking into account the time of state insurance exams; you will become a true tax and insurance professional in the U.S. Count on us to help you!
