If you are shopping for business tax preparation, you will see wildly different quotes. The gap is usually explained by scope, not by one firm being cheap and another expensive. This article explains how the work differs by entity so you can compare fairly. For S corporations specifically, see our dedicated guide to S corp tax preparation cost.
What each entity actually requires
- Sole proprietor or single-member LLC: Schedule C on the owner's personal return, plus possible state forms.
- Partnership or multi-member LLC: Form 1065 and a K-1 for each partner, then each partner's personal return.
- S corporation: Form 1120-S, K-1s, shareholder basis tracking, and payroll for working owners.
- C corporation: Form 1120 with entity-level tax and different reporting rules.
Cost drivers common to all entity types
- 1Quality of the bookkeeping. Clean books reduce preparer time and cost the most.
- 2Number of owners. More K-1s mean more work.
- 3State filings. Each state may require its own return, composite filings, or entity-level taxes.
- 4Payroll and contractor reporting.
- 5Depreciation, vehicles, real estate, or inventory.
- 6Late filings, amendments, or notices.
- 7Whether planning advice and year-round access are included.
Compare quotes using a scope checklist
- Which federal returns are included?
- Which state returns, and how many states?
- Are the owners' personal returns included or extra?
- Is bookkeeping review or cleanup included?
- Who signs the return and what credentials do they hold?
- Is there a review call and a year-round contact?
We have intentionally left out dollar averages for 2026 because we could not verify a reliable, current source. Request a written fixed-fee proposal from any firm you consider.
The hidden cost of cheap preparation
Pass-through returns feed directly into the owners' personal returns, so errors multiply. A missed basis calculation, wrong owner pay, or unreported state income can generate notices and amended returns later. If you suspect your entity structure is wrong, review LLC taxed as S corp before choosing a preparer.
Late filers cost more to prepare
If returns are unfiled, expect additional work: transcripts, reconstructed records, and sometimes several years at once. See how to file business taxes for multiple years. For general accounting costs, see our overview of small business accountant pricing.
Our tax preparation service quotes after reviewing your documents. To get a proposal, book a consultation.
