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Business tax returns
1120, 1120s, 1065 |
Service | Cost |
|---|---|
$0 income/expenses business returns | $300* |
Revenue under $250k | $750* |
Revenue over $250K | $900 and up* |
Priority/Rush Business Tax Preparation (engagement signed and documents uploaded less than 30 days before tax deadline) | $200 |
Business Tax Return Extension (7004) (FREE with signed tax return preparation engagement.) | $150 |
* Business tax return filers must provide an Income Statement and Balance Sheet, or request bookkeeping services. |
FAQ
Typically an S-corporation has employees, in this case the company is responsible for withholding federal income tax, Social Security and Medicare taxes from their paychecks requiring an S-corporation to file an IRS Form 941 each quarter to reports total witholdings.
Typically an S-corporation has employees, in this case the company is responsible for withholding federal income tax, Social Security and Medicare taxes from their paychecks requiring an S-corporation to file an IRS Form 941 each quarter to reports total witholdings.
Typically an S-corporation has employees, in this case the company is responsible for withholding federal income tax, Social Security and Medicare taxes from their paychecks requiring an S-corporation to file an IRS Form 941 each quarter to reports total witholdings.
Business Tax Return Preparation: What 1120, 1120-S and 1065 Cost
Quick Answer
Annual business tax return preparation at Illion Tax & accounting starts at $300. If the company had no income and no expenses during the year, the return costs $300. With revenue under $250,000 the price is $750. Above that, pricing starts at $900 and depends on transaction volume and how complex the books are.
Two items are billed separately: rush preparation on a tight deadline at $200, and a filing extension via Form 7004 at $150. The extension buys roughly six more months to assemble documents, but it does not postpone the tax payment.
The price covers preparing the return itself (1120, 1120-S or 1065), computing the tax base, producing Schedule K-1s for shareholders or partners, and checking that your books tie to the filing. Clients who file business returns with us get personal returns at 25% off, provided the business return isn’t already discounted.
What the Service Includes
A tax return isn’t mechanical form-filling. Most of the work happens before it: confirming the numbers are right and that expenses are documented and correctly classified. Here’s what’s included.
- Reviewing the year’s financial data: verifying income and expense records and finding gaps between the bank and the books.
- Identifying available deductions and confirming each one is supported by documentation.
- Preparing the financial statements the return is built on: profit and loss, and balance sheet.
- Completing and filing the return: 1120 for a C-corp, 1120-S for an S-corp, 1065 for partnerships and multi-member LLCs.
- Producing a Schedule K-1 for each shareholder or partner, allocating income, deductions and credits.
- Reconciling payroll data against W-2s, the W-3 and Form 941 so wage expense on the return matches payroll.
- Computing tax due or refund, preparing payment instructions and, where needed, estimated payments for the coming year.
- Working through owner loans and distributions so they land correctly on the balance sheet and in Schedule K-1.
- E-filing the return with the IRS and delivering the full package to you in the client portal.
Pricing
Price follows revenue first, because revenue is a proxy for the number of transactions that have to be checked. Here’s the full list.
| Item | Price | Frequency |
|---|---|---|
| Return with no income or expenses | $300 | Annually |
| Return with revenue up to $250,000 | $750 | Annually |
| Return with revenue above $250,000 | From $900 | Annually |
| Rush preparation and filing | $200 | One-time |
| Filing extension (Form 7004) | $150 | One-time |
| Personal return for business-return clients | 25% off | Annually |
What Drives the Final Price
- Revenue and transaction count. The core driver: data volume sets how long verification and reconciliation take.
- Condition of the books. If we keep your bookkeeping and months are closed, preparation moves fast. If nothing was reconciled, cleanup or reconstruction comes first and is billed separately.
- Number of shareholders or partners. Each additional Schedule K-1 adds allocations and checks.
- Activity in multiple states. Apportioning income across states requires separate computations and state filings.
- Payroll, fixed assets and inventory. Depreciation, inventory and payroll form reconciliation all add work.
- When you engage us. Preparation in the final days before the deadline is billed as rush: $200 on top of the base price.
Worked Example
Take an S-corp with $320,000 in revenue, one owner-shareholder and one employee. Books were kept in QuickBooks, payroll ran all year, and the client engaged us in February — no rush.
| Cost item | Calculation | Amount |
|---|---|---|
| Form 1120-S with revenue above $250,000 | Base price | $900 |
| Schedule K-1 for one shareholder | Included | $0 |
| Filing extension | Not needed | $0 |
| Owner’s personal 1040 | 25% off | Depends on contents |
| Total for the business return | — | $900 |
For comparison, the same entity with $180,000 in revenue pays $750, and a dormant LLC with no activity pays $300. The difference isn’t the form — it’s the volume of data that has to be verified before filing.
Had the owner come to us on March 10 asking to file by the 15th, the $200 rush fee would apply. The alternative is a Form 7004 extension at $150: it buys time until September and often costs less than rushing, especially when some documents are still missing.
One critical detail: an extension moves the filing deadline, not the payment deadline. For S-corps and partnerships that rarely matters, since owners pay the tax, but a C-corp still has to pay on time or interest starts running.
What Happens If You DIY or Skip It
The penalty for a late S-corp or partnership return isn’t based on tax owed — it’s based on owner count, charged for each month late for every shareholder or partner, up to twelve months. A two-partner company six months late ends up with a bill in the thousands even when no tax is due.
C-corps add a failure-to-pay penalty calculated on the tax for each month late, plus interest. There’s also an accuracy-related penalty if the return understates the tax base.
A return built on bad books creates a delayed problem. A mismatch between W-2s, Form 941 and the lines on the return is one of the most visible inconsistencies in automated matching. Fixing it means an amended return, which costs more and takes longer than getting it right the first time.
Missing Schedule K-1s hit owners personally: without one, a shareholder can’t file an accurate personal return, and a late personal filing brings its own penalties and interest.
Dormant companies deserve a separate note. Many owners assume no activity means no filing. In practice a corporation must keep filing while its charter is active, and $300 for a zero return is almost always cheaper than untangling penalties two years later.
How the Work Is Organized
- We gather the data: accounting exports, bank statements, payroll forms, fixed asset schedules and owner loan details.
- We verify the books: reconciling balances, finding open or duplicated entries, and clarifying questionable expenses.
- We build the profit and loss statement and balance sheet in the form they’ll take on the return.
- We prepare the return and Schedule K-1s, compute tax due or refund, and walk you through the numbers before filing.
- We get your approval and signature and e-file with the IRS, adding state returns where required.
- We deliver the document package and, if needed, calculate estimated payments for the next year.
Which Option Fits Which Business
Here are the benchmarks for typical situations, so you can see which bracket your business falls into.
| Client situation | What we handle | Price guide |
|---|---|---|
| Company registered but not operating | Zero return: 1120, 1120-S or 1065 | $300 |
| Revenue under $250,000, books in order | Full preparation with K-1s and reconciliations | $750 |
| Revenue above $250,000 | Preparation with extended data verification | From $900 |
| Documents arrive right before the deadline | Rush preparation or a 7004 extension | $200 or $150 |
Common Client Mistakes
1. Skipping the return because the company had no activity
Consequence: Penalties accrue monthly per owner, even with zero tax due.
How to avoid it: File the zero return for $300 — it costs less than any late filing.
2. Handing over documents days before the deadline
Consequence: A $200 rush fee, errors from haste, and no time to collect missing support.
How to avoid it: Start gathering documents in January; if time runs short, file a 7004 extension for $150.
3. Books never reconciled against payroll
Consequence: Mismatches between the W-3, Form 941 and the return, IRS questions and an amended return.
How to avoid it: Reconcile payroll forms to the books quarterly, not at filing time.
4. Treating an extension as a payment deferral
Consequence: Interest and failure-to-pay penalties run from the original due date.
How to avoid it: When filing Form 7004, calculate and pay your estimated tax at the same time.
FAQ
$300. That applies to companies with no income and no expenses for the year. The form depends on tax status: 1065 for a multi-member LLC, 1120-S with S status, 1120 for a C-corp.
The line is $250,000 in revenue. Below it, preparation is $750; above it, pricing starts at $900 and depends on transaction count, owner count and multi-state activity.
It’s a surcharge for preparation on a compressed timeline when documents arrive shortly before the deadline. The work is the same; it simply moves ahead of the scheduled queue.
It moves the filing deadline by roughly six months and costs $150. That helps when the books aren’t closed or you’re waiting on documents from vendors. The payment deadline doesn’t move.
S-corps and partnerships file by March 15; calendar-year C-corps file by April 15. With a different fiscal year, the deadline runs from your year-end.
No, we prepare returns from your own records too. But if the data isn’t reconciled, verification or reconstruction comes first and is billed separately.
The base price covers the federal return. State returns and minimum taxes are quoted separately, because their content varies widely — sometimes one form, sometimes a report plus franchise tax.
We file an amended return. First we look at the discrepancy and what it affects: sometimes it changes the tax, sometimes only the owners’ Schedule K-1 data. The cost depends on the scope of corrections and is quoted after review.
An authorized officer of the company signs — a director, authorized shareholder or partner. We’re responsible for the accuracy of the computations and compliance with the forms, while the underlying records and supporting documents remain the client’s responsibility.
Yes. We start by checking which years are open, what notices have already arrived, and whether penalties can be reduced through first-time abatement or reasonable cause. Prior-year returns are prepared on the same price scale, and the review itself is quoted once we see the scope.
Yes. If your 1120, 1120-S or 1065 is filed with us and isn’t already discounted, the personal return is prepared at 25% off.