VPN security guide for businesses
Remote work is here to stay, and so are the threats that come with it. Learn how VPNs protect your data in transit, what the IRS requires for remote access to taxpayer data, and how to choose the right VPN for your organization.
The Basics
What is a VPN and how does it work?
A Virtual Private Network (VPN) creates a secure, encrypted connection over a less secure network, such as the public internet. It protects your data from interception and provides secure access to private resources.
Encrypted Tunnel
A VPN creates an encrypted tunnel between your device and the destination network. All data passing through this tunnel is scrambled using protocols like AES-256, making it unreadable to anyone intercepting the traffic, including internet service providers, hackers on public Wi-Fi, and government surveillance.
IP Address Masking
Your real IP address is hidden behind the VPN server's address. This prevents websites, advertisers, and potential attackers from tracking your physical location or identifying your network. For businesses, this reduces the attack surface by hiding your office network topology.
Secure Remote Access
VPNs allow remote employees to securely access internal company resources, file servers, databases, and applications as if they were physically in the office. This is critical for organizations that handle sensitive data like taxpayer records, patient information, or financial documents.
Public Wi-Fi Protection
Public Wi-Fi networks at coffee shops, airports, and hotels are hunting grounds for attackers using man-in-the-middle techniques. A VPN encrypts your traffic so that even on a compromised network, your data remains protected and unreadable to eavesdroppers.
Comparison
Business vs. consumer VPN
Consumer VPNs like NordVPN or ExpressVPN are designed for personal privacy. Business VPNs are designed for organizational security and compliance. They serve fundamentally different purposes.
Primary Purpose
Business VPN
Secure access to company network, internal applications, and sensitive data for authorized employees
Consumer VPN
Privacy browsing, bypassing geo-restrictions, hiding browsing activity from ISPs
Authentication
Business VPN
Multi-factor authentication, certificate-based auth, integration with Active Directory/SSO
Consumer VPN
Username and password only in most cases
Administration
Business VPN
Centralized management console, user provisioning, group policies, activity logging
Consumer VPN
Individual account with minimal management capabilities
Compliance
Business VPN
Audit logs, access controls, encryption standards that meet HIPAA, IRS, PCI-DSS requirements
Consumer VPN
No compliance features; many consumer VPNs have questionable logging policies
Split Tunneling Control
Business VPN
IT administrators can enforce policies on which traffic goes through the VPN and which does not
Consumer VPN
User controls split tunneling preferences with no central oversight
Scalability
Business VPN
Supports hundreds or thousands of concurrent connections with dedicated infrastructure
Consumer VPN
Typically limited to 5-10 simultaneous device connections per account
Compliance
IRS requirements for remote access
Tax professionals who access taxpayer data remotely must comply with IRS Publication 4557 requirements for secure remote connections. Non-compliance puts your PTIN and practice at risk.
- All remote access to systems containing taxpayer data must use an encrypted VPN connection
- VPN connections must require multi-factor authentication, not just a username and password
- VPN access logs must be maintained and reviewed as part of your security monitoring program
- Remote devices connecting via VPN must have current antivirus, firewall, and operating system updates
- VPN policies must be documented in your Written Information Security Plan (WISP)
- Split tunneling should be disabled to prevent data leakage outside the encrypted tunnel when handling taxpayer information
- VPN sessions should automatically disconnect after a period of inactivity (recommended: 15-30 minutes)
- Former employees must have VPN access revoked immediately upon separation
Selection Guide
How to choose the right VPN
Not all VPNs are created equal. These are the criteria that matter most when selecting a VPN for business use.
Encryption Protocol
Look for VPNs that support WireGuard, OpenVPN, or IKEv2/IPSec. Avoid older protocols like PPTP (broken) and L2TP without IPSec. WireGuard is the newest and offers the best combination of speed and security with a minimal codebase that is easier to audit.
Zero-Trust Architecture
Modern business VPNs are moving toward zero-trust network access (ZTNA) where every connection is verified regardless of whether the user is inside or outside the network. This is more secure than traditional VPNs that grant full network access once connected.
Kill Switch
A kill switch immediately blocks all internet traffic if the VPN connection drops unexpectedly. Without a kill switch, a momentary disconnection could expose your real IP address and send unencrypted data over the public internet.
No-Log Policy
For privacy, choose a VPN provider that does not log your browsing activity, connection timestamps, or IP addresses. For business VPNs, you want logging for compliance, but ensure logs are stored securely and access is restricted.
Multi-Factor Authentication Support
The VPN must support MFA integration. For business VPNs, look for SAML/SSO integration with your identity provider (Azure AD, Okta, etc.) and support for hardware security keys and authenticator apps.
Performance and Reliability
VPN overhead should not significantly impact productivity. Look for providers with servers geographically close to your users, bandwidth guarantees, and uptime SLAs of 99.9% or higher for business-critical connections.
Implementation
VPN setup guide for businesses
Define Your Requirements
Identify how many users need VPN access, what resources they need to reach, and any compliance requirements (IRS, HIPAA, etc.). Determine whether you need site-to-site VPN (connecting offices), remote access VPN (connecting individual users), or both.
Choose Your VPN Solution
For small businesses, cloud-managed VPN solutions like Tailscale, Cloudflare Access, or Perimeter 81 offer easy setup without dedicated hardware. Larger organizations may need hardware-based solutions from Cisco, Palo Alto, or Fortinet with dedicated VPN concentrators.
Configure the VPN Server or Gateway
Set up the VPN endpoint with your chosen encryption protocol (WireGuard or OpenVPN recommended). Configure DNS settings, define which subnets remote users can access, and set session timeout policies. Enable logging for compliance and troubleshooting.
Set Up Authentication
Integrate the VPN with your identity provider and enable multi-factor authentication. Create user groups with appropriate access levels. A bookkeeper should not have the same network access as an IT administrator.
Deploy to User Devices
Install the VPN client on all remote devices. Configure it to connect automatically when on untrusted networks. Enable the kill switch and disable split tunneling for devices that handle sensitive data. Test connectivity to all required resources.
Monitor and Maintain
Review VPN access logs regularly for unusual activity: connections from unexpected locations, failed authentication attempts, or connections outside normal business hours. Keep VPN software updated on both server and client sides. Revoke access immediately when employees leave.
Secure your remote workforce
Our team can evaluate your remote access setup, deploy a compliant VPN solution, and configure policies that meet IRS and HIPAA requirements.
Schedule Free Consultation