How Much Does It Cost to Have Business Taxes Done?

For most small businesses, having taxes done costs more than the "starting at" prices you see online. The IRS estimates that small S corporations spend about $4,200 a year on out of pocket costs for their return, and small partnerships about $3,300. Minimum fees are lower, but they're the floor, not the bill.

So what will you actually pay? It depends on what your business files, how many owners and states are involved, and how clean your books are. Here's how to read the numbers you'll find online, and what a full year usually looks like.

The minimum fee is the floor, not the price

Most numbers you see online are minimum fees. In the 2025 NATP fee study, as reported by Accounting Today, the average minimum fee for business returns was $634, and half of preparers set theirs between $350 and $850. Almost half of preparers price with a minimum fee plus complexity, so the final number climbs from there.

That survey also skews toward simpler work. More than half of the preparers who answered said their practice is mainly individual 1040 returns, and only 6% said they focus mainly on business returns. A firm that prepares S corp and partnership returns all season will usually quote above that minimum.

The credential matters too. In the same study, CPAs averaged $280 for a basic 1040 with common schedules, compared with $228 for enrolled agents and about $185 for preparers without a credential.

What a full year actually costs

The IRS publishes its own estimates of what businesses spend to prepare and file their returns. These cover out of pocket costs like preparation fees, software and postage, and they're national averages, so treat them as a reality check rather than a quote.

"Small" here means under $10 million in assets, which covers almost every business we talk to. If you own an S corp or a partnership, add the business return and your own 1040 together. That's the real cost of a tax year.

Which return your business files

The return your business files is the biggest driver of the base price, because each one is a different amount of work.

The IRS treats a single member LLC as disregarded from its owner for income tax, so its income usually lands on your Schedule C. An LLC with two or more members is a partnership by default unless it elects otherwise.

What pushes the price up

Preparers in the NATP study said complexity, time and their own expertise drive what a return is worth. In plain terms, these are the things that add hours:

• Books that aren't reconciled. If your preparer has to sort a year of bank transactions before starting, that's cleanup work, not tax prep.
• More owners. Every partner or shareholder means another K-1 to prepare and check.
• More states. Each state return is more work. Ask how many are included.
• Assets and depreciation. Buying equipment, vehicles or property adds schedules.
• Payroll. If you pay yourself a salary through an S corp, your preparer needs payroll reports to match.
• Late or missing documents. Every round of "can you send me that 1099 again" is time someone is paying for.
• Prior year problems. Unfiled years, IRS letters or amended returns are usually quoted separately.

Bookkeeping cleanup is usually separate

This is the part that surprises people. Most preparers want your books reconciled before they start the return, and cleanup is priced on its own. NATP members reported that bookkeeping and monthly accounting make up about 12% of their revenue, so plenty of firms do it, they just don't fold it into the return fee.

If your books are behind, ask for the cleanup quote and the return quote separately so you can see where the money goes. If you're still deciding who to hire, our guide on hiring someone to do your business taxes covers credentials and the questions to ask.

What a good quote includes

A low headline number with lots of add ons often ends up costing more than a fixed quote that covers the whole job. When you compare quotes, check whether each one includes:

• Your federal business return and your personal 1040
• At least one state return, and the price of each extra state
• An extension, if you need one
• Quarterly estimate amounts for next year
• Secure upload and e-signature, so you aren't emailing tax documents
• Review by a licensed tax professional before anything is filed
• Help if the IRS sends a letter about the return

At Paloma, our online tax preparation for small businesses starts with a fixed quote within 24 hours of seeing your documents. Federal plus one state return is included, an extension is included if you need one, and every return is reviewed and signed off by a licensed tax professional. If your books need cleanup first, we work with partner bookkeepers.

One rule from the IRS worth repeating: avoid preparers who base their fees on a percentage of your refund. A paid preparer should also have a PTIN, sign your return and give you a copy.

Ways to lower your bill without cutting corners

You can't control what the market charges, but you can control how much work your return takes.

1. Keep business and personal money separate. One account for the business makes the books faster for everyone.
2. Reconcile monthly, not in March. A bookkeeper once a month usually costs less than a cleanup project once a year.
3. Send everything at once. One complete upload beats ten emails.
4. Reach out early. Preparers get busier as the season goes on, and an early start leaves time to find missing documents.
5. Ask what's included before you sign. It's cheaper to know about the state return fee now than on the invoice.

Frequently Asked Questions

How much does it cost to have business taxes done?
It depends on the return. Minimum fees for business returns averaged $634 in the 2025 NATP study, but the IRS estimates small S corps spend about $4,200 a year on out of pocket return costs and small partnerships about $3,300. Owners also need their own 1040.

Why are prices online so much lower than my quote?
Most published numbers are minimum fees or starting prices. They don't include the owner's personal return, extra states, bookkeeping cleanup or the complexity of your business.

Is a single member LLC cheaper to file than an S corp?
Usually, yes. A single member LLC is generally reported on Schedule C with your 1040, and the IRS estimates individuals with business income spend about $610 on out of pocket costs. An S corp files its own Form 1120-S, and then you still need your personal return.

Do tax preparers charge by the hour?
Very few do. Only 7% of preparers in the 2025 NATP study charge a set hourly rate, averaging $182. Most quote a flat fee or a minimum plus complexity.

Does the fee include bookkeeping?
Usually not. Most preparers expect reconciled books and price cleanup separately. Ask for the two quotes side by side.

Why did my quote go up from last year?
Fees across the industry are rising, with most NATP members reporting increases of 6 to 10%. A new owner, a new state, an asset purchase or late books can also raise your fee.

Get a real number for your business

If you want to know what your return will actually cost, share your documents and we'll send a fixed quote within 24 hours. Start with our online tax preparation for small businesses, or grab a time to chat with Abby if you'd rather talk it through first. You can also browse more of our small business tax guides.