Average Cost of Tax Preparation for an LLC

There’s no such thing as an LLC tax return, which is why the cost swings so widely. An LLC files whatever return matches its tax classification, and the national averages follow the form: a single-member LLC reports on Schedule C of the owner’s Form 1040, which added an average of $192 to the owner’s personal return in the National Society of Accountants’ fee survey. A multi-member LLC files a partnership return, Form 1065, which averaged $733. An LLC that has elected S corporation status files Form 1120-S, which averaged $903, and one taxed as a C corporation files Form 1120, which averaged $913. Those figures come from the survey’s 2020-2021 edition, the last with form-by-form averages, so a current quote runs higher. Our own published price for a partnership or S corporation return starts at $1,295.

Which tax return does my LLC file?

The IRS sorts LLCs by member count and by any election on file. Per the IRS’s LLC classification page, a domestic LLC with at least two members is classified as a partnership unless it elects otherwise. A single-member LLC is treated as an entity disregarded as separate from its owner unless it files Form 8832 to be taxed as a corporation.

How the LLC is taxed	Return filed	NSA 2020-2021 national average
Single-member, default (disregarded entity)	Schedule C on the owner’s Form 1040	$192 added to the personal return
Single-member holding rental property	Schedule E on the owner’s Form 1040	$145 added to the personal return
Multi-member, default (partnership)	Form 1065 plus a K-1 per member	$733
Any LLC with an S corporation election	Form 1120-S plus a K-1 per owner	$903
Any LLC taxed as a C corporation	Form 1120	$913

The source is the NSA Income and Fees Survey, 2020-2021 edition, the last with public form-by-form averages. The NSA’s 2024 survey summary gives ranges only, including $750 to $1,250 for a corporate Form 1120. The 2025 National Association of Tax Professionals study, reported by Accounting Today, found an average minimum fee of $634 for business returns across all preparer types.

What does a single-member LLC cost to file?

The least of any LLC, because there’s no separate business return. The business lands on Schedule C inside your personal return, so you’re paying for a Form 1040 plus the schedule. On the survey averages, that’s $323 for an itemized 1040 plus $192 for Schedule C, or about $515. The NATP 2025 figures for a CPA come out close: a $280 base return plus $123 to $135 for Schedule C.

The averages assume the preparer receives a clean profit and loss statement. A single-member LLC that hands over twelve months of bank statements is asking the preparer to do the year’s bookkeeping first, and that’s billed separately at most firms. In the NSA survey, 78.1% of preparers charged extra for disorganized records, $166 on average, and a full-year reconstruction costs far more than that.

What does a multi-member LLC cost to file?

More, because the LLC now files its own return and issues a Schedule K-1 to each member. Form 1065 has a balance sheet, a reconciliation of book income to tax income, and a capital account for every member that has to roll forward correctly from the prior year. The $733 figure is an average across every partnership return the surveyed firms prepared.

Three things move a partnership return well past the average. The first is the number of members, since each K-1 adds work and each member’s capital account has to tie out. The second is special allocations in the operating agreement, where profits aren’t split by simple ownership percentage. The third is a change in ownership during the year, which can mean splitting the year’s income between old and new members. The LLC operating agreement tax guide covers the provisions that drive this.

Does an S corporation election raise the tax preparation bill?

Yes, and it’s usually still worth it once profit is high enough. The S corporation return itself averaged $903, about $170 more than a partnership return. The bigger added cost is that the owner has to be paid a salary through real payroll, with quarterly Forms 941, state unemployment filings, and a W-2. A payroll service for a one-employee S corporation runs about $500 to $700 a year at published software prices.

Against that, the election can cut self-employment tax by thousands of dollars a year, which is why it’s such a common move for a profitable LLC. The election is made on Form 2553, and per the Form 2553 instructions it’s due no more than 2 months and 15 days after the beginning of the tax year it’s meant to cover. The S corporation election timing guide has the deadlines and the late-election relief, and the entity comparison guide runs the math on when the switch pays.

What happens if the LLC return is late?

Partnership and S corporation returns are due March 15 for calendar-year LLCs (March 16 in 2026, since the 15th fell on a Sunday), a month before personal returns, and the late penalty is charged per owner. For returns due in 2026, Rev. Proc. 2024-40 sets it at $255 per partner or shareholder, per month or part of a month, for up to 12 months. The penalty applies even when the LLC owes no tax at all, because a partnership return is an information return.

A four-member LLC that files three months late owes $3,060. The same LLC filing a full year late owes $12,240. An extension on Form 7004 is automatic if it’s filed by the due date, and it stops the penalty clock for six months.

What does Blue Cloud CPA charge for an LLC return?

A single-member LLC on Schedule C falls under our individual return pricing, which starts at $495 for a return with a side business. Partnership and S corporation returns start at $1,295, which includes the federal return, one state, and all owner K-1s. C corporation returns start at $2,495. An S corporation election on Form 2553 is $350. Every price is fixed in writing before work starts, and the full list is on the tax preparation page.

What should I do next?

Confirm how your LLC is taxed before you ask anyone for a quote, because it decides which row of the table applies. Look at last year’s return: a Schedule C inside your 1040 means disregarded, a Form 1065 means partnership, a Form 1120-S means the S election is in place. If you’ve never filed for the LLC, the IRS letter confirming your EIN (CP 575) and any Form 2553 acceptance letter (CP 261) settle it.

• The CPA tax preparation cost guide has the full national fee tables for individual and business returns.
• The LLC versus sole proprietor guide explains what the LLC changes and what it doesn’t for a one-owner business.
• The S corporation reasonable compensation guide covers how to set the owner salary the election requires.
• The small business accountant cost guide shows the full annual budget, bookkeeping and payroll included.

This guide is general information, not tax advice for your specific situation. Which points apply, and how, depends on your facts.