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Average Cost of Tax Preparation for Small Business

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The “average cost of tax preparation for small business” is the total amount it costs to complete one’s taxes, including any professional fees or software costs. They can vary depending on how complex someone’s taxes are, as well as where they live in the United States. If you’re looking to save money this year by doing your own “taxes,” be sure to read through our handy guide!

How Much Does Tax Preparation for a Small Business Cost?

The average cost of tax preparation for small businesses can be a daunting figure, but it’s important to remember that there are many ways to reduce this cost. One way is by taking advantage of all the free resources available online. For example, the IRS offers a wide range of helpful information on their website, including detailed instructions on how to

In most cases, it ranges from $100 to $500. However, it’s important to note that this estimate doesn’t include any additional costs for itemized deductions or other specific services. If you’re unsure about what your average tax will be, it’s always a good idea to consult with an accountant or tax specialist. They can help you determine what services you’ll need and how much they will cost.

There are a few key things to keep in mind when it comes to tax preparation.

  1. First, make sure you understand the services included in your business.
  2. Next, decide if you want to do your taxes or get help from a professional. If you’d rather have someone else handle “taxes,” try searching for “local tax prep near me” and find one that meets your needs!

Small Business Tax Prep Costs

Company owners usually hire tax accountants to assist them with their taxes. Tax preparers may structure their charges in various ways. Still, according to a poll from the National Society of Accountants, the typical cost of having an IRS Form 1040 tax expert complete an itemized IRS Form 1040 was $273 in 2014.

In addition to the expense of completing Form 1040, the National Society of Accountants found that hiring a tax professional to submit the following IRS forms costs an average of $485:

  • A Form 1040 Schedule C costs $174. (business)
  • A Form 1065 costs $634. (partnership)
  • A Form 1120 costs $817. (corporation)
  • A Form 1120S costs $778. (S corporation)
  • A Form 1041 costs $457. (fiduciary)
  • A Form 990 costs $688. (tax exempt)
  • A Form 940 costs $68. (Federal unemployment)
  • Schedule D (gains and losses) costs $115.

Tax preparation costs can range from $0 to several hundred dollars, depending on the type of tax return you are filing. Again, keep in mind that these prices are averages and may vary depending on your location, industry, and company size. Consult with a tax professional to see which IRS forms apply to your small business.

Do I require expert assistance when it comes to my taxes?

Tax for small businesses can vary depending on how complex your situation is. For example, if you own multiple properties or have a significant amount of investment income, you may want to consider hiring an expert rather than trying to do it yourself.

On the other hand, if you’re a sole proprietor with a simple return, likely, you won’t need to hire anyone else and can save money by completing your “taxes” using one of the many free resources available online.

The best way to figure out what is right for you is to consult with an expert. At The Oasis Firm, we can help you prepare your tax records and file it ahead of the deadline. We’ll take the guesswork out of tax filing, so you can concentrate on your business and in helping your clients.

What Should Tax Preparation Services Include

Let’s discuss what services to expect when hiring a professional to complete your taxes now that you know what to anticipate financially. Tax preparation services packages vary depending on who you get them from, but the following are some of the most frequent services included.

  • A tax professional like The Oasis Firm will assist an individual or company prepare the appropriate forms they need to submit by IRS requirements.
  • Tax appeals and representation: The IRS has a history of surprising individuals and companies with audits, fines, and perplexing notifications. A tax professional can assist you in determining what notice is asking—and even how to respond to it. Remember that not all tax experts can defend you during an audit; if you want legal assistance, understand this may be an additional service that some tax preparers may not be equipped to offer. Make sure to ask your tax preparer about their qualifications and if they can help in those matters.
  • Tax planning: “Average cost of tax preparation for small business ” can potentially save you thousands. A good accountant will suggest solutions to “problematic areas” in your taxes so that you are always prepared during the next filing period. This may include introducing new deductions, simplifying documentation requirements, or “tax-loss harvesting.”
  • Bookkeeping: A good portion of the “average cost of tax preparation for small business” goes to maintaining accurate and up-to-date financial records. By handing off this responsibility to a professional, you can ensure that your books are in order and that all your transactions are accounted for come Tax Day.
  • Tax advice and preparation: Taxes may significantly negatively impact small company earnings. When you operate a small business with little overhead and are subjected to hefty commercial taxes, your finances may be severely impacted. Planning ahead of time can assist you in avoiding the consequences of business taxes on your company.
  • It’s challenging to keep track of the dates, forms, and fees involved with filing taxes for your firm—much alone the state and federal laws to obey. A qualified tax preparer will assist you in ensuring that your company is by IRS requirements for both federal and state business tax rules.

Taxes are a complicated process, but don’t worry! The Oasis Firm has various resources to help you understand the tax code and file your return correctly.

Summary of Key Points

If you decide to outsource your tax preparation services and hire a tax expert, the following are some things to keep in mind about submitting taxes for your firm:

  • Keep track of everything: Keep thorough records of all commercial activities, deductions, payables, and receivables.
  • Be IRS-compliant: The IRS’s most despised pet peeve is not following its regulations. Businesses must comply with specific tax rules that individuals do not, so double-check your understanding of federal and state-specific tax laws before submitting your taxes.
  • On-time arrival is critical: While it may be true that not all Americans comply with the April 15 deadline for submitting their taxes, if you want to avoid a surprise audit or extra tax payments, it’s always recommended that you do so. Even better, file your taxes early and get back to work!
  • When in doubt, seek out assistance: Taxes might be confusing. If you’re stumped on how to file your taxes correctly— let alone strategically—you may want to seek tax advice from a professional. Filing your taxes accurately the first time can help you avoid problems and save you time and money!

Now that you know more about the “average cost of tax preparation for small businesses,” be sure to use this information to your advantage. This year, make sure you’re getting the best deal on taxes by having The Oasis Firm on your side.

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