According to research from the National Society of Accountants, the price for a Schedule C (sole proprietorship tax return) is $205.
My fee for a Schedule C starts at $50.
There’s a lot to say on fees (like … I will no longer tolerate people complaining about my fees after I’ve seen research like what I linked to above!) and I’ll fill up future blog posts with those thoughts.
But today, I’m writing about Schedule C.
Is the average price for preparing a Schedule C really $205? Or on this survey, did some firms respond with the total price for a Schedule C plus the accompanying 1040?
Other solo practitioners I have talked to charge nowhere near $200 for a Schedule C. Most are somewhere in the $60-75 range.
I do know that a competing CPA firm in my town charges $250 for a Schedule C, but that firm is aggressive with its pricing, and they have multiple layers of staff and partners, so they really aren’t comparable to a solo operator like me.
Pricing a Schedule C is Hard
Not all Schedule Cs are created equal.
My Schedule C clients range from:
- Side businesses of all sorts.
- Consultants (generally home-based) who make a lot of money but who have very little in the way of expenses, so their Schedule C is simple.
- Independent contractors, such as salesmen, who are treated as a contractor but who work for one company exclusively and who have no expenses other than mileage, so again, their Schedule C is simple.
- A few “main street” type of businesses that have a complex Schedule C — but once a sole proprietorship grows into this stage, they usually incorporate, so I don’t have too many Schedule Cs in this category.
These things make it hard to pin down an exact fee for a Schedule C. I can’t really charge the same for someone in #1 as in #4. And the folks in #3 are not really “business owners,” they’re just poor sods who are being treated as contractors and have no choice but to file a Schedule C.
A lot of times I’ll bill people in #1 and #3 at my Schedule C-EZ price ($25 … yes, I know that’s ridiculously low).
I’ll keep the fee at $50 for #2 and #4, and usually they have other things, such as the home-office deduction and depreciation schedules, that push the fee up higher.
The point, I guess, is that when you’re a solo operator like me, it’s hard to set rates, and even harder to stick to those rates. By far the hardest thing I grapple with is the question of “what to charge.”
More to come in future blog posts.
Image courtesy of adamr / www.freedigitalphotos.net
“This blog post, along with comments that may follow, should not be considered tax advice. Before you make final tax or financial decisions, please secure a professional tax advisor to give you advice about your unique situation. To secure Jason as your accountant, please click on the ‘Services’ link at the top of the page.”