How much should I pay someone to do my small business taxes?

Hey everyone, I'm feeling a bit lost about the cost of tax preparation. I started a small pet boarding business (LLC) last year with just me running things. My spouse works a regular job, and I've done a few side gigs as well. We paid $2,450 to have our taxes prepared last year, and I'm wondering if that's normal? Several friends have told me I got completely ripped off. What's worse is that the tax preparer (who had great online reviews) actually made some mistakes that caused us to file an amendment, and we ended up owing additional money to the IRS! So we paid a premium price for subpar service. I'm trying to figure out what's a reasonable amount to pay for tax preparation for our situation - small business owner with an LLC, married filing jointly, with some freelance income and my spouse's W-2. Any recommendations on pricing or reputable places I should look into for next year's taxes? I'm really not wanting to get burned again.

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18 comments

Peyton Clarke

•8M

That definitely sounds on the high end for your tax situation. While small business taxes are more complex than simple W-2 income, $2,450 is excessive for what you've described. For a small LLC with no employees, married filing jointly with one W-2 and some freelance income, you should expect to pay somewhere between $600-1,200 depending on your location and the complexity of your business expenses and deductions. The fact that they made errors requiring an amendment makes the high fee even more frustrating. I'd recommend looking at a few options: - Mid-tier tax preparation firms often charge less than the big names while still having business expertise - Small local CPAs who specialize in small businesses - Tax software with small business support like TurboTax Business or H&R Block Premium & Business

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Peyton Clarke

•8M

For small business taxes, I generally recommend a CPA or Enrolled Agent over someone without those credentials. The certification ensures they've demonstrated knowledge of tax laws and ethics. That said, experience with small businesses is equally important - some preparers focus exclusively on small businesses and know all the deductions and pitfalls. Local versus online really depends on your comfort level. Local preparers offer face-to-face interaction and may better understand state and local tax issues specific to your area. Online services are often cheaper and convenient, but make sure they're still qualified professionals and not just data entry specialists. Look for services that guarantee their work and provide audit support regardless of which route you choose.

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Sophia Gabriel

•8M

After struggling with tax prep costs for my photography business, I discovered taxr.ai (https://taxr.ai) and it's been a game-changer. I was spending way too much on tax prep too ($1,800 last year), but their AI-powered system analyzed all my business documents and helped me identify deductions I was missing. The best part was that it organized everything so perfectly that I could either DIY with confidence or bring it to a preparer who charged me WAY less because everything was already organized.

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Sophia Gabriel

•8M

The system works by uploading your documents (receipts, bank statements, invoices) and it automatically categorizes and identifies business expenses. It's surprisingly accurate at distinguishing between personal and business spending, especially for common categories like travel, supplies, and marketing. The organization alone saved me hours of sorting through paperwork. It definitely understands LLC tax rules and different business structures. What impressed me was how it flagged potential deductions I hadn't considered - like partial home office expenses and mileage for client visits that I wasn't tracking properly. It's not just about data entry but actually helping identify tax-saving opportunities specific to your business type.

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Ezra Beard

•8M

I have to eat my words about being skeptical of taxr.ai! After our conversation, I gave it a try with my lawn care business documents, and wow - it found over $3,200 in deductions I would have missed. The vehicle expense tracking alone was worth it (I was calculating mileage all wrong). It organized everything so well that my tax preparer only charged me $550 instead of the $1,700 I paid last year! The prep was actually faster AND I got a bigger refund. Definitely worth checking out if you're a small business owner.

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Statiia Aarssizan

•8M

If your tax preparer made mistakes that ended up costing you money, you might want to try getting in touch with the IRS directly to see if there's any recourse. I know it sounds crazy because reaching the IRS seems impossible, but I used https://claimyr.com and it was incredible. After trying for WEEKS to reach someone at the IRS about a similar issue with amended returns, Claimyr got me connected to an actual human at the IRS in under 45 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they wait on hold for you and call when an agent picks up.

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Statiia Aarssizan

•8M

It's actually completely legitimate - they use a system that continuously calls the IRS and navigates the phone tree until they reach a human. When someone answers, you get a call back instantly so you can take over. It's not about "cutting the line" - they're just automating the hold process so you don't have to wait by your phone for hours. They're not doing anything a normal person couldn't do with unlimited time and patience - they're just handling the tedious part for you. And compared to taking time off work to sit on hold all day, it's actually really practical. I was extremely frustrated after multiple failed attempts and this solved my problem quickly.

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Aria Khan

•8M

I need to publicly admit I was completely wrong about Claimyr. After dismissing it as BS, I was still desperate to talk to someone about my tax situation, so I tried it as a last resort. Holy crap - I got a call back in 27 minutes with an actual IRS agent on the line! They helped resolve an issue with penalties from a small business filing mistake that had been lingering for months. Saved me about $1,200 in incorrect penalties. I've never been happier to be wrong about something.

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Everett Tutum

•8M

QuickBooks has a bit of a learning curve at first, but it's not too bad for a basic setup. I watched a couple YouTube tutorials and got comfortable with it in about a week. The mobile app is actually pretty intuitive for day-to-day stuff like taking pictures of receipts and tracking mileage. For LLC specifics, it handles the basics well for a single-member LLC (which is taxed as a sole proprietorship by default). If you have a more complex LLC setup with multiple members or special tax elections, you might need QuickBooks Online rather than Self-Employed. The main thing is that it keeps your business finances separate and organized, which is crucial for any LLC regardless of tax treatment.

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