How much does a CPA charge to do small business taxes?

For a straightforward small business tax return (sole proprietor with Schedule C), expect $500-$1,000. S-Corp returns (Form 1120-S) typically cost $1,000-$2,500. Partnership returns (Form 1065) run $1,000-$3,000. C-Corp returns (Form 1120) range from $1,500-$4,000+. These are for the return only — tax planning and advisory are billed separately.

Is it worth paying a CPA for a small business?

For most businesses with revenue above $100,000, yes. CPAs typically save small businesses $3,000-$10,000 annually through proper deduction optimization, entity structure advice, and tax planning. The fee usually pays for itself within the first year.

Do CPAs charge monthly or per project?

Both. Tax return preparation is usually a flat per-return fee. Ongoing services (bookkeeping, advisory, payroll) are typically billed monthly, ranging from $500-$3,000/month depending on complexity. Some CPAs also offer hourly billing at $150-$400/hour for ad-hoc work.

How much should a small business budget for accounting annually?

As a rule of thumb, budget 1-3% of annual revenue for accounting and tax services. A business earning $500,000 should budget $5,000-$15,000 per year. This covers tax preparation, quarterly planning, and monthly bookkeeping or financial review.

Why do CPA fees vary so much?

The biggest factors are: business complexity (entity type, number of transactions, multiple states), geographic location (CPAs in New York City charge 40-60% more than those in smaller markets), the CPA's experience and specialization, and the scope of services (tax prep only vs. full-service advisory).

How Much Does a CPA Cost for Small Business in 2026?

April 16, 2026

CPA pricing is one of those things nobody talks about clearly. You call a firm, they say "it depends," and you hang up without a number. Here's what CPAs actually charge small businesses in 2026, based on real market rates.

Tax Preparation Fees

The biggest expense most small businesses have with a CPA is the annual tax return. Here's what to expect by entity type:

Sole Proprietor (Schedule C)

A Schedule C filed with your personal return (Form 1040) is the simplest business return. Cost: $500-$1,000. This assumes straightforward income and expenses, no inventory, and one state. If you also have rental properties, investments, or other complexity on your personal return, the total 1040 preparation will run $800-$1,500.

S-Corporation (Form 1120-S)

An S-Corp return is more complex — it requires its own entity-level return plus K-1s for each shareholder, reasonable compensation analysis, and officer salary reporting. Cost: $1,000-$2,500. Add $200-$500 per additional state filing if you operate in multiple states.

Partnership / Multi-Member LLC (Form 1065)

Partnership returns require allocation schedules, capital account tracking, and K-1 preparation for each partner. Cost: $1,000-$3,000, depending on the number of partners and complexity of allocations. Special allocations or tiered partnership structures push costs to the higher end.

C-Corporation (Form 1120)

C-Corp returns involve the most complexity: corporate tax rates, accumulated earnings considerations, dividend planning, and potential double taxation analysis. Cost: $1,500-$4,000+. Large or complex C-Corps with multiple subsidiaries or international operations can exceed $10,000.

Monthly Ongoing Services

Many CPAs offer monthly packages that bundle bookkeeping, financial reporting, and advisory:

Basic monthly bookkeeping + quarterly tax planning: $500-$1,000/month
Full-service bookkeeping + monthly financial review + payroll: $1,000-$2,500/month
CFO-level advisory + bookkeeping + tax + payroll: $2,500-$5,000/month

A typical small business with $300,000-$1M in revenue lands in the $800-$2,000/month range for comprehensive accounting services. This usually includes monthly reconciliation, financial statements, quarterly estimated tax calculations, and year-end tax preparation.

Hourly Rates

For ad-hoc work — IRS notices, consulting on a specific transaction, entity restructuring — most CPAs bill hourly:

Staff accountant (1-3 years): $75-$150/hour
Senior accountant (3-7 years): $125-$250/hour
Manager/Senior Manager: $175-$350/hour
Partner/Principal: $250-$500/hour

Big Four and large regional firms charge at the top of these ranges (and above). Solo practitioners and small firms in mid-size markets typically fall in the lower-to-middle range.

What Drives CPA Costs Up

Geographic Location

A CPA in Manhattan charges 40-60% more than one in a mid-size Southern city. San Francisco, Los Angeles, Boston, and Chicago are similarly premium. A $1,500 S-Corp return in Nashville might cost $2,500 in New York City for equivalent quality.

Business Complexity

More transactions mean more work. A business with 50 monthly transactions is straightforward. A business with 500+ transactions, multiple bank accounts, credit cards, and inventory is substantially more work. Multi-state operations add $200-$500 per additional state return.

Messy Books

If your books are disorganized — uncategorized transactions, missing receipts, commingled personal and business expenses — expect a $500-$2,000 cleanup fee before the CPA even starts on your return. Keeping clean books throughout the year is the single best way to reduce your CPA bill.

Late Filing and Rush Work

Bringing your documents to a CPA on April 10 for an April 15 deadline will cost more. Many firms charge a 15-25% rush surcharge for returns needed within two weeks of the deadline. Filing an extension is free and gives you until October 15 — there's no reason to pay rush fees.

How to Get the Best Value

Keep clean books year-round. Use QuickBooks, Xero, or Wave. Reconcile monthly. This alone can cut your CPA's tax prep time (and your bill) by 30-50%.
Organize documents before your appointment. Create folders for income statements, expense receipts, 1099s, W-2s, asset purchases, and loan documents.
Don't wait until April. Schedule a tax planning meeting in Q4 (October-November). Proactive planning saves more than reactive preparation.
Ask for a fixed-fee engagement. Most CPAs will quote a flat fee for defined scope. This eliminates surprise bills.
Match the CPA to your needs. You don't need a Big Four firm for a $300,000 business. A solo practitioner or small firm specializing in small business tax will deliver better value and more personal attention.

Annual Budget Benchmarks

Here's what to budget based on your business size:

Sole proprietor, under $100K revenue: $1,000-$3,000/year (tax prep + minimal advisory)
Small business, $100K-$500K revenue: $3,000-$10,000/year (tax prep + bookkeeping + quarterly planning)
Growing business, $500K-$2M revenue: $10,000-$25,000/year (monthly bookkeeping + tax + advisory)
Established business, $2M-$10M revenue: $25,000-$60,000/year (full-service accounting + CFO advisory)

The rule of thumb: budget 1-3% of revenue for accounting and tax services. Businesses at the lower end of that range have simple operations; those at the higher end have complex structures, multiple entities, or heavy transaction volumes.

Ready to compare pricing? Browse CPAs specializing in small business to find one that fits your budget and needs.

Frequently Asked Questions

How much does a CPA charge to do small business taxes?: For a straightforward small business tax return (sole proprietor with Schedule C), expect $500-$1,000. S-Corp returns (Form 1120-S) typically cost $1,000-$2,500. Partnership returns (Form 1065) run $1,000-$3,000. C-Corp returns (Form 1120) range from $1,500-$4,000+. These are for the return only — tax planning and advisory are billed separately.
Is it worth paying a CPA for a small business?: For most businesses with revenue above $100,000, yes. CPAs typically save small businesses $3,000-$10,000 annually through proper deduction optimization, entity structure advice, and tax planning. The fee usually pays for itself within the first year.
Do CPAs charge monthly or per project?: Both. Tax return preparation is usually a flat per-return fee. Ongoing services (bookkeeping, advisory, payroll) are typically billed monthly, ranging from $500-$3,000/month depending on complexity. Some CPAs also offer hourly billing at $150-$400/hour for ad-hoc work.
How much should a small business budget for accounting annually?: As a rule of thumb, budget 1-3% of annual revenue for accounting and tax services. A business earning $500,000 should budget $5,000-$15,000 per year. This covers tax preparation, quarterly planning, and monthly bookkeeping or financial review.
Why do CPA fees vary so much?: The biggest factors are: business complexity (entity type, number of transactions, multiple states), geographic location (CPAs in New York City charge 40-60% more than those in smaller markets), the CPA's experience and specialization, and the scope of services (tax prep only vs. full-service advisory).