What Is the Average Cost of Tax Preparation by CPA for an Established Business?

The average cost of tax preparation by CPA for small business returns is about $3,300 to $4,200 in 2026. That is the IRS estimate for companies with $10 million or less in assets. A base fee for the form alone averages $733 to $913.

State returns, K-1s, messy books, and late filing push the bill higher. A two-owner S corporation that files two months late owes $1,020 in IRS penalties, more than the return itself. Here is what each return costs, how business tax return preparation is billed, and what to check before you sign.

Average Cost of Tax Preparation by CPA by Return Type

The average cost of tax preparation by CPA and tax firms depends on the return type, and the newest official figures come from the IRS. The 2025 Form 1120 instructions, used in the 2026 filing season, estimate the average out-of-pocket cost of each business return:

These IRS averages cover preparer fees, software, and filing costs for the whole return, so they run higher than a base fee. The National Society of Accountants tracks base fees per form in its Income and Fees Survey. the most recent national study of fees per form, lists these averages:

Treat these base fees as a floor for CPA tax preparation fees. The 2024 NSA summary found only 34 percent of its 183 respondents were CPAs. Its 2024 data puts a Form 1120 at $750 to $1,250.

Schedule C Pricing for a Single-Member LLC

A single-member LLC is a disregarded entity by default, so its profit lands on Schedule C of the owner’s Form 1040. The average cost of tax preparation for LLC owners on this path is the $323 itemized return plus $192 for Schedule C. That comes to about $515 before state returns.

A multi-member LLC files Form 1065, and an LLC taxed as an S corporation files Form 1120-S. So the tax election sets the fee, not the letters LLC.

Expect the Schedule C quote to rise when you have:

• Inventory, which brings cost of goods sold into the return.
• Vehicles or equipment that need depreciation.
• Contractors, since each one over the threshold needs a Form 1099-NEC.
• Income in several states, each with its own return.

Form 1065 Pricing for Partnerships and Multi-Member LLCs

Form 1065 is the partnership information return, and it averaged $733 in the NSA survey. The partnership pays no income tax itself. It issues a Schedule K-1 to every partner, and each K-1 is work the firm prices in.

Calendar-year partnerships could file their 2025 return by March 16, 2026, under the Form 1065 instructions. A late return costs $255 per partner for each month, for up to 12 months.

Run that math on a three-partner real estate LLC that files four months late. The penalty is $255 times 3 partners times 4 months, or $3,060. That is more than four times the average Form 1065 fee.

Ask whether the quote covers:

• Every K-1, including partners who left mid-year.
• Capital account and basis tracking for each partner.

Form 1120-S and Form 1120 Pricing: What Changed in the 2026 Filing Season

The Form 1120-S instructions set March 16, 2026 for calendar-year S corporations, because March 15 fell on a Sunday. A C corporation files by April 15, 2026.

An S corporation return takes more work because owner pay, shareholder basis, and distributions all tie to the K-1. That is where year-round tax planning saves more than the return costs.

The 2026 filing season is the first under the One Big Beautiful Bill Act. Two changes move the fee:

• Section 174A. The law adds it for domestic research or experimental expenditures.
• Form 1099-NEC. The Form 1099-NEC instructions now start reporting at $2,000, up from $600, for payments made in 2026.

CPA Hourly Rate, Flat Fee, or Monthly Retainer

A CPA hourly rate is the price a firm charges for each hour of tax work. NSA members averaged $179.71 an hour for federal and state returns. The 2024 summary found 37 percent of firms use fixed fees and 24 percent mix fixed and hourly fees.

• Flat fee per return. Best when your books close clean every month.
• Hourly billing. Fits one-off work, such as an IRS notice. Ask for a cap in writing.
• Monthly retainer. Bundles bookkeeping, payroll, and the return. This is what owners mean when they ask how much does a CPA cost per month.

GATP bundles bookkeeping and tax filing into monthly plans. The GATP pricing plans start under $250 a month, and the Plus and Premium tiers include federal and state tax filing.

The business share is deductible under the Schedule C instructions, but personal return fees are not, per Publication 529.

Extra CPA Fees Beyond the Return and Regional Price Differences

Extra CPA fees are charges for work outside the base return, such as extensions, IRS letters, and audits. The 2020 to 2021 NSA survey tracks them. Budget for them:

Form 1120 averaged $1,128 in the Pacific region and $1,111 in the Middle Atlantic. It averaged $671 in the Mountain region and $684 in East South Central states.

Practices whose clients have a median household income of $150,000 or more charged $1,248 for Form 1120, the realistic benchmark for a seven-figure owner.

Why Messy Books Raise Tax Preparation Fees

Messy books are the fee driver you control, because every unreconciled month becomes cleanup. The 2024 NSA summary found 67 percent of firms charge extra for disorganized files, usually $100 to $200.

The average cost of business tax preparation by CPA for a two-owner S corporation, in NSA base fees:

• Form 1120-S: $903
• Two itemized owner returns at $323 each: $646
• Disorganized file fee, 2020 average: $166
• Total: $1,715 before any state return

We saw this in a bookkeeping catch-up for a four-entity salon group. The books ran about 12 months behind across every entity. Point-of-sale, Shopify, and two card processors never tied to the ledger. The return was the small bill. Reconciling four sets of books was the real cost.

• E-commerce. Shopify and Stripe payouts arrive net of fees, so gross sales must be rebuilt.
• Real estate. The rent roll has to match deposits, property by property.
• Insurance payments land weeks late, and payroll must tie to Form 941.

Should I Hire an Accountant for My Small Business? Fee Red Flags

Should I hire an accountant for my small business comes down to penalty math. Before asking how much does it cost to hire a CPA, price one late month at $255 per owner.

You need a CPA once you have any of these: owners who need K-1s, payroll, income in more than one state, or an open IRS notice.

The IRS preparer credentials page says CPAs, enrolled agents, and attorneys have unlimited representation rights. In the bookkeeper vs CPA choice, the bookkeeper keeps the records and the CPA signs the return.

1. Get a flat fee per return in writing. Red flag: an open hourly quote.
2. Confirm every K-1 and state return is priced. Mistake: a base fee that doubles at filing.
3. Reconcile the books before January with the small business tax checklist for 2026. Mistake: paying catch-up rates in March.
4. Make sure the preparer signs the return and enters a PTIN. Red flag: a fee based on your refund, which IRS Topic 254 says to avoid.
5. Write both deadlines into the letter. Mistake: an extension with no plan to finish.

Conclusion: What CPA Tax Preparation Really Costs in 2026

The average cost of tax preparation by CPA firms runs $3,300 to $4,200 in 2026 for a business with $10 million or less in assets. The return type, the state of your books, and filing on time set your final bill.

Get a fixed quote for your next business return. We review your entity type, K-1 count, and state filings. You get back a fixed fee, the cleanup needed first, and a filing date. Our personal and corporate tax services cover both.

Book a free consultation.

CPA Tax Preparation Fees: Frequently Asked Questions

What is the average cost of tax preparation by CPA firms in the US?

The average cost of tax preparation by CPA firms is about $3,300 to $4,200 per business return in 2026. That IRS estimate covers companies with $10 million or less in assets. Base fees for the form alone average $733 to $913. A $400 itemized personal return sits inside the 2024 NSA range of $300 to $600.

How much does a CPA cost for a business tax return in 2026?

A business return filed in 2026 costs about $3,300 to $4,200 for a company with up to $10 million in assets. That comes from the IRS 2025 instructions. Larger companies average $29,400 to $69,400, and the 2024 NSA base fee for Form 1120 is $750 to $1,250.

How much does a CPA cost for small business returns specifically?

The IRS puts the average out-of-pocket cost at $3,300 for Form 1065, $4,200 for Form 1120-S, and $3,900 for Form 1120. Those figures cover businesses with $10 million or less in assets. A sole proprietor pays about $515 in base fees for an itemized Form 1040 with Schedule C.

What tax preparation fees should a business expect by return type?

Expect $192 for Schedule C, $733 for Form 1065, $903 for Form 1120-S, and $913 for Form 1120, based on NSA averages. Owners with rental property add about $145 for Schedule E. A trust or estate return on Form 1041 averages $576.

What is a normal CPA hourly rate for business tax work?

A normal hourly rate for federal and state return work was $179.71 in the NSA survey. In-person IRS audit work averaged $167.63 an hour, and bookkeeping write-up work $105.51. Rates vary by state and credential, so get the rate and a cap in writing.

How much does a CPA cost per month on a retainer instead of per return?

A monthly retainer spreads bookkeeping, payroll, and the tax return across twelve payments instead of one spring invoice. GATP plans start under $250 a month, and the Plus and Premium tiers include federal and state tax. GATP quotes the exact monthly fee after a short call about your books.

What is the average cost of tax preparation for LLC returns?

An LLC return costs about $515 to $903, depending on how the LLC is taxed. A single-member LLC on Schedule C runs about $515 with the owner’s itemized return. A multi-member LLC on Form 1065 averages $733, and an LLC taxed as an S corporation averages $903.

How much does an accountant cost compared with a CPA?

An accountant doing bookkeeping costs less per hour than a CPA doing tax work. NSA members averaged $105.51 an hour for write-up work and $179.71 for tax returns. Only CPAs, enrolled agents, and attorneys can represent you in any IRS matter.

Are tax preparation fees deductible for a business?

Yes, the business share of tax preparation fees is deductible. The Schedule C instructions tell sole proprietors to include fees for preparing the tax forms related to the business. Fees for a personal return are not deductible, because miscellaneous itemized deductions are no longer allowed.

Should I hire an accountant for my small business or file it myself?

Hire one once you have partners, payroll, or income in more than one state. Then one missed deadline costs more than the fee: two S corporation owners filing late owe $510 a month in penalties. Tax software can file a simple personal return, but it cannot reconcile books or represent you.