For many aspiring tax advisors, the prospect of future self-employment is a significant motivator in their career choice. The step into one's own tax office not only opens up professional design possibilities but also entrepreneurial freedom.

For many tax advisors, the possibility of self-determination plays a significant role. A self-managed tax firm enables independent work and offers more flexibility than a traditional employment relationship. As an owner or partner, one can decide on time management, client selection, company values, and work culture.

Economic independence can also bring advantages. Tax firm owners design their fee models independently and can scale services and increase revenues through team building. Depending on positioning, specialization, and organization, higher income prospects are possible than in an employment relationship.

Self-employment for tax advisors offers a model that unites freedom, responsibility, and economic potential in a unique way. At the same time, it requires intensive preparation and risk consideration.

What prerequisites apply to self-employment as a tax advisor?

Anyone wishing to establish their own tax firm or work as a self-employed tax advisor must definitely pass the tax advisor examination. It is uniformly regulated nationwide and forms the formal basis for professional admission.

Only after successfully passing the exam and subsequent appointment by the responsible tax advisor chamber can the protected title tax advisor be used and self-employment commenced.

There are clear entry requirements for admission to the tax advisor examination. A classic path involves a related professional training, for example as a tax specialist in combination with ten years of professional experience.

Those who have already studied law or economics can receive exam admission earlier and typically require two to three years of practical experience. Tax specialists may take the exam after seven years of professional activity.

The exam itself is considered demanding and is among the most difficult professional access examinations in Germany. It consists of three written exams and an oral examination phase. Only when both parts are successfully passed can the appointment as a tax advisor take place.

How can one become self-employed as a tax advisor?

Anyone wishing to embark on self-employment has three options: founding their own tax firm, joining as a partner in an already established tax firm, or taking over a tax firm. Each option offers advantages, risks, and challenges. Personal goals, resources, and professional visions play a decisive role in choosing the right model.

Establishing a new tax firm

The direct path to self-employment is founding one's own tax firm. It offers maximum freedom and scope for development, but also challenging start-up conditions. Especially young professionals entering self-employment after the tax advisor exam must be both specialists and entrepreneurs.

In addition to investments in premises, software, and technical equipment, issues such as personnel management, pricing, marketing, and client acquisition are also part of the tasks. Therefore, a structured business plan is indispensable. It helps to realistically plan financing, target audience, location choice, and competitive environment.

Joining as a partner

An alternative way to become self-employed as a tax advisor is to join an existing tax firm. Existing structures, an experienced team, and a fixed client base offer advantages, as a significant portion of acquisition and development work is eliminated.

However, the path to this is not always easily accessible. Partnerships or participations are rarely publicly advertised and usually arise only after a longer, successful collaboration within the tax firm. When a participation offer is made, it is worthwhile to look closely at the conditions. Participation models with equity capital are possible as well as those without capital investment. 

Taking over a tax firm

Taking over a tax firm combines security and independence. For many who want to start as a self-employed tax advisor, this is the most practicable middle ground. An existing tax firm brings established client relationships, tested procedures, and often even support from the previous owner during the transition phase.

A key aspect to consider when taking over a tax firm is the purchase price. Often, tax advisors have a strong emotional connection to their firm. This occasionally leads to inflated perceptions of value and unreasonable price expectations. Therefore, it is advisable for buyers not to accept the price unchecked but to conduct a thorough profitability calculation and realistically assess the tax firm value based on their analyses and research.

How does one succeed as a self-employed tax advisor?

Success in self-employment does not depend solely on tax expertise. Equally important are entrepreneurial skills, strategic thinking, and a structured approach. Anyone wishing to build their own tax firm should plan sufficient lead time and develop a clear founding concept.

A well-developed business plan helps to realistically assess investment needs and costs, identify knowledge gaps, and plan for support early on. Simultaneously, this process clarifies whether self-employment is the right step or whether another career path seems more sensible for the time being.

For those wishing to consciously reduce risks, a partnership with other tax advisors can be an attractive alternative. It allows starting with shared responsibilities, collective know-how, and lower financial burden.

Another key success factor is professional marketing. Professional expertise alone is not enough — it must become visible. A modern website, presence on social media, networking, as well as workshops or client events contribute to increasing reach and awareness. Continuously working on one's market presence and actively reaching out to potential clients lay the foundation for long-term growth and successful development of a tax firm.

How much does a self-employed tax advisor earn?

Self-employed tax advisors generally earn higher revenues than employed counterparts. However, fees cannot be set completely freely. The basis for pricing is the tax advisor fee regulation (StBVV), which defines minimum and maximum limits for many activities. Within this framework, there is room for better margins, particularly in the field of business consultancy or with individual additional services.

While employed tax advisors earn an average of about 5,000 euros per month, the income of many freelance tax advisors typically ranges between 6,000 and 12,000 euros per month, depending on the client portfolio, specialization, and tax firm structure. This salary level is realistic once the initial hurdles have been overcome and a solid client base has been established.

Economic success is not solely determined by the fee but also by realistic and forward-looking cost planning. In addition to typical expenses such as salaries, rent, and insurance, costs for IT, software licenses, transportation, training, office supplies, marketing, as well as financing and operating costs are also included. Only when these factors are accurately calculated does it become clear what income is realistically achievable in the long term.

What is the suitable legal form?

Choosing the appropriate legal form for self-employed tax advisors depends on various factors. In addition to tax considerations and the desired degree of liability limitation, the planned company size and the desire for flexibility in corporate management play a decisive role.

Anyone wishing to become a tax advisor exercises a liberal profession. Therefore, a business registration is usually not required for those working independently as tax advisors. For starting out, registration with the tax office is typically sufficient to commence professional activity.

However, if a tax firm is to be managed by several tax advisors jointly, different legal forms can be considered for its establishment. The choice of legal form mainly affects liability issues and the internal organization of the tax firm.

Civil-law partnership (GbR)

The GbR is a frequently chosen legal form because it is comparatively uncomplicated. There are no strict formal requirements for the partnership agreement. This agreement specifies the purpose, goals, and collaboration of the partnership. A joint tax firm, in which tax advisors and lawyers team up, can also be organized as a GbR. In the event of claims for damages, all partners are liable personally, including their private assets. Limitation is only possible if liability is contractually limited to the responsible tax advisor.

Partnership

When only tax advisors join forces, it can be done as a partnership based on a partnership agreement. The principles of liability are essentially similar to those of the GbR. In a partnership, not all partners automatically bear liability, rather typically the one who handled the client and against whom the claim is directed.

Partnership company with limited professional liability (PartGmbB)

The PartGmbB is structurally similar to the partnership but offers an important liability advantage. In certain claims, partners are not liable with their private assets but essentially only with the partnership assets. However, this only applies under two conditions: There must be professional liability insurance, and it must involve claims from professional liability.

Limited liability company (GmbH)

Tax advisors can also choose to run their tax firm as a GmbH. This legal form excludes personal liability. For both professional and other claims, liability is generally limited to the company's assets.

Conclusion

The path to self-employment as a tax advisor requires thorough preparation and a clear strategic focus. Those who inform themselves early and draft a concrete business plan create the appropriate foundation for their own tax firm or as a partner in an existing tax firm structure.

A concept makes visible what financial investment is necessary, which ongoing costs are expected, and where know-how is still lacking. Often, it also becomes apparent in which areas external support seems sensible, such as in organization, marketing, digitization, or personnel.

Those who consciously choose self-employment can reduce risks through a partnership and simultaneously benefit from several advantages. Self-employed tax advisors enjoy freedom in work schedule design, better fee potentials, and more independent client selection.