Tax preparation service cost for small business and the self-employed
Quick answer
A paid preparer charged an average of $279 for a basic Form 1040 with a state return in the National Society of Accountants' 2023 survey, $392 if you itemize. Add a Schedule C ($221 average) and Schedule SE ($62) and a typical freelancer's return comes to about $562. An S-corporation return averaged $970 on its own[1].
Doing it yourself with software is cheaper: H&R Block Online Self-Employed lists at $130 plus $49 per state, and TurboTax's expert-assisted business option for sole proprietors at $229 plus state[4][2].
General information, not tax advice. The NSA figures are national averages from a 2023 survey of its member firms, published in 2024. Prices in your area, and for your situation, will differ, and fees have generally risen since.
Every spring, a lot of small-business owners have the same thought. "Should I just pay someone to do this?"
Often, yes. But it helps to know what "someone" costs before you pick up the phone, and what you're actually paying for.
How much does a tax preparation service cost?
Most preparers price by form. Every extra schedule adds to the bill. The best broad data comes from the National Society of Accountants, which surveys its member firms on fees. Its 2023 report says average fees for returns rose 10% to 30% since its previous survey[1].
| Form | What it's for | 2023 average | 2020 average |
|---|---|---|---|
| Form 1040, not itemized, with state return | Your personal return | $279 | $220 |
| Form 1040, itemized, with state return | Personal return with Schedule A | $392 | $323 |
| Schedule C | Sole proprietor / single-member LLC profit | $221 | $192 |
| Schedule SE | Self-employment tax | $62 | $41 |
| Form 1065 | Partnership / multi-member LLC | $815 | $733 |
| Form 1120S | S corporation | $970 | $903 |
| Form 1120 | C corporation | $1,004 | $913 |
| Form 941 | Employer's quarterly payroll return | $125 | $96 |
| Form 940 | Federal unemployment (FUTA) | $93 | $78 |
A word on how to read these. They're averages from NSA members, national, from 2023. A CPA firm in Manhattan and a solo enrolled agent in a small town will quote very different numbers. Treat the table as a sanity check, not a price list.
What does tax prep cost if you're self-employed?
Say you're Dev, a freelance photographer (an example), with a 1040, a Schedule C for the business and a Schedule SE for self-employment tax. Using the NSA averages, that's $279 + $221 + $62 = $562. If Dev itemizes, it's $392 + $221 + $62 = $675[1].
That's before any extras, and some of the extras are common (more on those below).
Is $562 worth it? It depends what it buys you. A good preparer can spot deductions you missed, keep your quarterly estimates on track, and save you an evening of second-guessing. Then there's peace of mind, which is hard to price but very real when a letter from the IRS lands in your mailbox. If your return is genuinely simple, though, software may do the job for a fraction of the cost.
New to self-employment tax? Our self-employment tax guide explains the 15.3% and how quarterly payments work.
And for an LLC, partnership or S corp?
Business returns cost more because there's more to them. In the NSA survey, a partnership return (Form 1065) averaged $815, an S-corp return (1120S) $970 and a C-corp return (1120) $1,004[1].
Two things trip people up. First, the business return is separate from your personal one, so an S-corp owner usually pays for both: the 1120S plus their own 1040. Second, if you have employees, payroll filings add up too. The average quarterly Form 941 was $125, and the annual Form 940 $93, if your preparer handles them rather than your payroll software[1].
A single-member LLC is usually simpler. Unless you've elected to be taxed as a corporation, it's typically reported on your own return with a Schedule C, so it costs about the same as Dev's example above.
Is tax software good enough, or should you pay a pro?
Software has quietly moved into the middle ground. You can file entirely on your own, or pay extra to have an expert on call.
| Option | Published price | Who it suits |
|---|---|---|
| IRS Free File | $0 | AGI of $89,000 or less |
| VITA volunteer sites | $0 | Generally income of about $70,244 or less |
| H&R Block Online Self-Employed | $130 + $49 per state | Comfortable doing it yourself |
| TurboTax Expert Assist (sole prop) | $229 + state | DIY with an expert on call and a final review |
| Local preparer, by-form average | About $562 (1040 + Schedule C + SE) | Wants it handled; average from 2023 survey |
| TurboTax Expert Assist (S-corp/partnership) | $639 + state | Business returns, DIY-ish |
| Preparer, S-corp return | About $970 (Form 1120S only) | S-corp owners; your 1040 is extra |
H&R Block's online prices: Free $0, Deluxe $65, Premium $105 and Self-Employed $130, each plus $49 per state filed[4]. TurboTax's Expert Assist Business lists $229 plus state for sole proprietors and $639 plus state for S-corps and partnerships[2]. One fine-print note: TurboTax says its strikethrough prices reflect anticipated late-season pricing, so the same product can cost more if you file later in the year[3].
What do users say? TurboTax holds a 1.2 TrustScore from 1,326 Trustpilot reviews, and Trustpilot's AI summary says reviewers complain about price hikes and paywalls that appear late in the process after starting free[9]. H&R Block sits at 1.3 from 1,497 reviews, with complaints about unexpected extra charges and hidden fees[10]. The pattern is pretty clear: the advertised price is the floor, not the bill.
Honestly, I'd use software if your return is a Schedule C with tidy books and no surprises. I'd pay a pro the first year you form an S corp, hire employees, or have a big one-off event (selling property, say). That first year sets up habits.
And clean books make either route cheaper. If you're still on spreadsheets, our accounting software comparison is a good place to start.
CPA, enrolled agent or tax preparer: who should you hire?
Here's something many people don't know: anyone with a Preparer Tax Identification Number (PTIN) can be paid to prepare tax returns[8]. No exam required.
The difference shows up if the IRS comes calling. CPAs, enrolled agents and tax attorneys have unlimited representation rights, so they can represent you on any matter, including audits, payment and collection issues, and appeals. Preparers in the IRS's Annual Filing Season Program have limited rights. And PTIN holders with no credentials or AFSP participation are authorized to prepare returns but generally have no authority to represent you[7].
Enrolled agents are worth a special mention. They're licensed by the IRS itself, pass a comprehensive exam covering individual and business returns and representation, and complete 72 hours of continuing education every 3 years[7]. For a lot of small businesses, an EA is the sweet spot between price and expertise.
What makes a tax preparer charge more?
Mostly, a messy shoebox. In the NSA survey, 65% of firms said they charge extra for disorganized or incomplete files. Also common: 36% charge for filing extensions and 28% for expedited returns[1].
So the cheapest thing you can do is arrive organized: income totals, expense categories, mileage, your EIN (if you have one, see do you need an EIN?), last year's return, and your quarterly payments with dates.
Ask for a quote upfront, too. Most preparers will give you a range once they know which forms you need.
Can you get your taxes done for free?
Possibly. IRS Free File offers guided tax software if your adjusted gross income was $89,000 or less[5]. And the IRS's VITA program offers free help from IRS-certified volunteers to people who generally make about $70,244 or less[6].
Not every free option handles every business situation, so check what's supported before you start. But if your numbers fit, it's worth a look before paying anyone.
One last tip: budget tax prep like any other annual business cost, right next to your software subscriptions.
Frequently asked questions
How much does it cost to have your taxes done professionally?
In the National Society of Accountants' 2023 survey, the average fee for a Form 1040 with a state return was $279 without itemizing and $392 with itemized deductions. Prices vary a lot by area and complexity, and have generally risen since.
How much does tax prep cost for a self-employed person?
Adding NSA's 2023 averages for a 1040 ($279), Schedule C ($221) and Schedule SE ($62) gives about $562 at a paid preparer. DIY software such as H&R Block Online Self-Employed lists at $130 plus $49 per state.
How much does an accountant charge for an S-corp return?
The NSA's 2023 average for Form 1120S was $970, and your personal 1040 is usually billed separately. TurboTax Expert Assist Business lists S-corp returns at $639 plus state.
Is a CPA or an enrolled agent cheaper?
It depends on the firm, but both have unlimited rights to represent you before the IRS. Enrolled agents are licensed by the IRS and specialize in tax, so many small businesses find them a good balance of cost and expertise.
Can anyone prepare my tax return for money?
Yes. Anyone with an IRS Preparer Tax Identification Number (PTIN) can be paid to prepare returns, but only CPAs, enrolled agents and attorneys have unlimited representation rights if you're audited.
Is there free tax filing for small businesses?
IRS Free File is available if your AGI was $89,000 or less, and VITA offers free volunteer help for people who generally make about $70,244 or less. Check that your forms are supported.
Sources
Preparer fees are national averages from the NSA's 2023 Income & Fees survey; software prices, IRS rules and review figures were checked Oct 2026. Tax software prices change through the filing season. See our editorial policy, methodology and affiliate disclosure.
- [1] National Society of Accountants: 2023 Income & Fees, Complete Report (PDF, © 2024): https://img1.wsimg.com/blobby/go/a15c5ffb-9439-4993-b38e-4acbf6145e32/2023%2BComplete%2BIncome%2Band%2BFees%2BReport.pdf (checked Oct 2026)
- [2] TurboTax small business taxes (Expert Assist Business): https://turbotax.intuit.com/small-business-taxes/ (checked Oct 2026)
- [3] TurboTax online pricing (personal): https://turbotax.intuit.com/personal-taxes/online/ (checked Oct 2026)
- [4] H&R Block online tax filing prices: https://www.hrblock.com/online-tax-filing/ (checked Oct 2026)
- [5] IRS: Free File: https://www.irs.gov/e-file-do-your-taxes-for-free (checked Oct 2026)
- [6] IRS: Free tax return preparation for qualifying taxpayers (VITA/TCE): https://www.irs.gov/individuals/free-tax-return-preparation-for-qualifying-taxpayers (checked Oct 2026)
- [7] IRS: Understanding tax return preparer credentials and qualifications: https://www.irs.gov/tax-professionals/understanding-tax-return-preparer-credentials-and-qualifications (checked Oct 2026)
- [8] IRS: Choosing a tax professional: https://www.irs.gov/tax-professionals/choosing-a-tax-professional (checked Oct 2026)
- [9] Trustpilot: TurboTax reviews page: https://www.trustpilot.com/review/turbotax.intuit.com (checked Oct 2026)
- [10] Trustpilot: H&R Block reviews page: https://www.trustpilot.com/review/www.hrblock.com (checked Oct 2026)