Cost and pricing
How much does a CPA cost for a small business? IRS and BLS numbers for 2026
What small businesses spend to get their taxes prepared, from IRS cost estimates for Schedule C, Form 1065, Form 1120 and Form 1120-S filers, BLS accountant pay data and a flat-price alternative.
Prepared by Aldro Accounting · Updated · Sources checked
The quick answer
The IRS estimates that a small business filing Form 1065 spends about $3,300 out of pocket on average to prepare and submit it, a small S corporation filing Form 1120-S about $4,200, and a small C corporation filing Form 1120 about $3,900. For owners who report business income on Form 1040 (Schedule C, E or F), the IRS average is about $560 and 24 hours per return.
The short answer
Aldro is the cheapest way to get your business taxes done: $399 flat, with bookkeeping at $20 a month.
What an accountant costs depends mostly on which return your business files. The IRS publishes average out-of-pocket costs for every major return. Those costs include preparation and submission fees, software, postage and photocopying. For a small partnership the average is about $3,300. For a small S corporation it is about $4,200, and for a small C corporation about $3,900.
Aldro's flat price covers everything tax for the year: every federal and state business return the business needs, including Schedule C, Form 1065, Form 1120-S and Form 1120, plus the owner's personal return when it's needed for the business income. Our team prepares and files them. $399 is less than each of those IRS averages.
What the IRS says businesses spend, by return
The IRS instructions for business returns include burden estimates based on statutory requirements as of December 2025 for 2025 returns. They split time and out-of-pocket cost, and they split small and large businesses. A large business has more than $10 million in end-of-year assets. Every other business counts as small.
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| Return | Small businesses filing (millions) | Average time | Average out-of-pocket cost | Average monetized burden |
|---|---|---|---|---|
| Form 1065 (partnerships, most multi-member LLCs) | 5.1 | 50 hours | $3,300 | $5,200 |
| Form 1120-S and other pass-through corporations | 6.1 | 50 hours | $4,200 | $6,500 |
| Form 1120 and other taxable corporations | 2.1 | 40 hours | $3,900 | $6,000 |
Monetized burden puts a dollar value on the time spent as well as the cash cost. The IRS notes these are national averages, not a typical case, and that most taxpayers have lower than average burden. It also says preparation fees vary with the tax situation, the type of software or preparer used and the location.
Sole proprietors and one-owner LLCs: Schedule C costs
A one-member LLC is generally disregarded and reports its income and deductions on the owner's federal return. The IRS counts a Form 1040 filer as a business filer if the return includes Schedule C, E or F, or Form 2106.
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| Filer type | Share of returns | Total hours | Recordkeeping | Tax planning | Form completion and submission | All other | Average cost |
|---|---|---|---|---|---|---|---|
| All taxpayers | 100% | 13 | 6 | 2 | 4 | 1 | $270 |
| Nonbusiness taxpayers | 72% | 9 | 3 | 1 | 3 | 1 | $150 |
| Business taxpayers | 28% | 24 | 12 | 4 | 6 | 2 | $560 |
For those business filers, the IRS estimates an average of 24 hours and $560 out of pocket per return. Nonbusiness filers average about 9 hours and $150. These estimates come from the Form 1040 instructions and are based on requirements as of November 2023 for 2023 returns.
Taxfyle, a tax preparation marketplace, reported in a March 2022 post that the typical cost for a CPA to complete an itemized Form 1040 with Schedule C and a state return for a self-employed person was $457. It put a non-itemized Form 1040 with a state return at $220 and an itemized one at $323, and noted these are averages based on what firms reported.
What accountants and bookkeepers earn
The Bureau of Labor Statistics reports what accountants are paid, not what firms bill clients. Those are different numbers, but pay sets the floor for what a firm charges.
Accountants and auditors earned a median of $83,680 a year, or $40.23 an hour, in May 2025. The lowest 10 percent earned less than $56,020 and the highest 10 percent more than $144,090. In accounting, tax preparation, bookkeeping and payroll services firms, the median was $81,490.
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| Occupation | Median per year | Median per hour | Lowest 10% | Highest 10% | Typical entry-level education |
|---|---|---|---|---|---|
| Accountants and auditors | $83,680 | $40.23 | Under $56,020 | Over $144,090 | Bachelor's degree |
| Bookkeeping, accounting and auditing clerks | $50,670 | $24.36 | Under $36,000 | Over $74,550 | Some college, no degree |
Bookkeeping, accounting and auditing clerks earned a median of $50,670 a year, or $24.36 an hour, in May 2025. The lowest 10 percent earned less than $36,000 and the highest 10 percent more than $74,550.
Why a CPA costs more than a preparer
A CPA is a state license. The BLS says all states require CPA candidates to pass a national exam and complete 150 semester hours of college coursework, 30 hours more than the usual 4-year bachelor's degree. CPAs generally have their own businesses or work for public accounting firms.
Any paid tax return preparer, CPA or not, needs a Preparer Tax Identification Number (PTIN) from the IRS. The fee to get or renew one is $18.75 for 2026 and for 2027. Every PTIN expires on December 31 and must be renewed to stay current.
What pushes a business's tax bill up
The IRS rules below add forms, schedules or deadlines, and more work for whoever prepares the return.
- Entity type: a multi-member LLC generally files Form 1065. Every domestic corporation not exempt under section 501 must file an income tax return whether or not it has taxable income.
- Balance sheets: a corporation filing Form 1120 with total receipts and total assets under $250,000 doesn't have to complete the balance sheet and the income and retained earnings reconciliations. Above that, it does.
- E-filing: a corporation that files 10 or more returns of any type in a calendar year, counting income, employment, excise and information returns, must e-file Form 1120.
- Estimated tax: a corporation that expects to owe $500 or more must pay installments by the 15th day of the 4th, 6th, 9th and 12th months of its tax year.
- Self-employment tax: anyone with net earnings of $400 or more from self-employment must pay it. For 2026, the maximum self-employment income subject to Social Security tax is $184,500.
Doing it yourself: software cost and late-filing risk
Taxfyle's 2022 post says tax software can be free for simple returns and generally costs less than $120 for more complex filing options. The time doesn't go away. The IRS puts the average business filer at 24 hours a return, half of it recordkeeping.
Missing a deadline costs money. A corporation that files late, including extensions, may be penalized 5% of the unpaid tax for each month or part of a month late, up to 25%. For a return required to be filed in 2026 that is more than 60 days late, the minimum penalty is the smaller of the tax due or $525.
Worked example
Say two partners run a small consulting LLC taxed as a partnership. By the IRS averages, the Form 1065 costs about $3,300 out of pocket and 50 hours. Each partner's Form 1040 with Schedule E counts as a business return, which the IRS puts at about $560 and 24 hours each. That's $3,300 + $560 + $560 = $4,420 out of pocket a year on IRS averages. A one-owner LLC filing Schedule C is closer to the $560 business-filer average, or $457 by Taxfyle's 2022 CPA figure.
Common questions
How much does a CPA cost for a small business tax return?
The IRS estimates average out-of-pocket costs of about $3,300 for a small partnership's Form 1065, $4,200 for a small S corporation's Form 1120-S and $3,900 for a small C corporation's Form 1120. These include preparation fees and software.
How much do accountants charge to do taxes for a self-employed person?
Taxfyle reported $457 as the typical CPA cost for an itemized Form 1040 with Schedule C and a state return, in a 2022 post. The IRS average for Form 1040 business filers is about $560 and 24 hours.
What is an accountant's hourly rate?
The BLS median pay for accountants and auditors was $40.23 an hour in May 2025, and $24.36 for bookkeeping, accounting and auditing clerks. That is pay to the worker. A firm's billing rate to clients is a separate number the BLS doesn't publish.
How much does a simple personal return cost with an accountant?
The IRS average for nonbusiness Form 1040 filers is about $150 and 9 hours. Taxfyle put a non-itemized Form 1040 with a state return at $220 and an itemized one at $323.
How much does it cost to file an amended return?
The IRS puts the average out-of-pocket cost of Form 1040-X, the amended individual return, at $230 per return.
The cheapest way to get your business taxes done: $399 flat.
Business tax filing is $399 USD a year, and it covers everything tax for that year.
How it works
- Tell us about your business. A two-minute form. No payment is collected through it.
- Get your next steps by email. We’ll email you the next steps within one business day. After you sign up we’ll send you a secure upload link for your documents.
- We file it. Our team prepares and files your return. Add bookkeeping for $20 a month if you want it.
What's included
$399 a year covers everything tax for that tax year.
- Every business return for the year. All the federal and state or provincial business returns you need for the tax year: Schedule C, 1065, 1120-S, 1120 and their state returns in the US; T2, or T1 with T2125, in Canada.
- More than one state. Multi-state returns are included at the same price.
- Your personal return. The owner’s personal return (1040 or T1) is included when it’s needed for the business income.
- Quebec. Quebec returns (CO-17, TP-1 and TP-80) are included. Our Quebec pages are in French, and our team works with you in English.
- Extensions and reminders. Extensions (Form 7004 or 4868) and quarterly estimate reminders are included.
- Information returns. 1099-NEC, T4/T4A and T5018 slips are included in the tax price.
- City and excise returns. City and local business tax returns, and state excise returns such as Washington B&O, are included in the yearly price.
- Franchise tax reports. State franchise tax reports, such as the Texas franchise tax report, are included.
- Estimated tax and instalment amounts. We work out your quarterly estimated tax payments in the US, or your CRA instalments in Canada, and tell you what to pay and when.
- Unfiled past years. Each unfiled prior-year return is $399 per tax year, the same flat price.
- Bookkeeping at $20 a month. Unlimited bank and card accounts, monthly reconciliation and monthly statements.
Basic inventory tracking for online stores, such as Shopify, is included. Full cost-of-goods reconciliation is quoted separately. Payroll processing and sales-tax filing aren’t included in bookkeeping. Prices are in USD. Our team prepares and files your return.
Sources
- IRS: Instructions for Form 1120 (2025) · checked October 31, 2026
- IRS: Form 1040 taxpayer burden estimates · checked October 31, 2026
- IRS: Updates to burden estimates in the Form 1040-X instructions · checked October 31, 2026
- IRS: Instructions for Form 1040-SS (2025) · checked October 31, 2026
- IRS: PTIN application and renewal FAQs · checked October 31, 2026
- BLS: Accountants and auditors · checked October 31, 2026
- BLS: Bookkeeping, accounting and auditing clerks · checked October 31, 2026
- Taxfyle: Cost of hiring an accountant (March 23, 2022) · checked October 31, 2026
This guide explains general rules from the sources listed. It isn’t tax advice for your situation.