How much does your CPA typically charge you to file an LLC tax return?

Question

As of today we only own one property under the LLC, which we bought last year. We flipped a different property last year. For filing our 2022 tax return we were invoiced $3,750 by our CPA. He filed an extension for us earlier this year and I guess because he filed the return last minute (kinda our fault) we were charged extra. He also works for a large firm so I'm guessing that has something to do with the fee being so high. I wouldn't say he's an expert in Real Estate as we haven't really discussed that many strategies as I'm the one to usually ask questions and bring them up, but he does have experience filing business taxes as he has been doing it for many years.

Basit Siddiqi · Answer

In my opinion $3,750 seems like alot for an LLC / partnership with one property. You may want to reach out to a couple of other professionals to get some quotes.

However, pricing can depend on several factors.

A) How many partners / member are in the entity, more partners/members results in more work and a higher fee.
B) Is there some sort of crazy profit / loss allocation. If there is, there is more calculations required and potentially a higher cost
C) Is the firm also doing your bookkeeping?
If they are, higher cost
D) Is there strategy calls throughout the year.

Best of luck to you in your search.

Eric Williams · Answer

The 3,750 likely includes amounts for the preparer, reviewer, and signer if it's for a larger firm.

Also time spent answering questions is billable. Further, if there was a lot of back and forth trying to get information that time spent is billable.

How much does your CPA typically charge you to file an LLC tax return?

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