Small Business Tax Preparation

Posted Sunday, December 8, 2024

Table Of Contents

Starting and running a small business can be very challenging, but very exciting. Probably more of a pain in the butt, yet most business owners start a company to do something they love. That passion can be a great motivator, but it can also be a detractor. Proper small business tax preparation and planning, recordkeeping of your business tax deductions and money handling is a must. This is just the operational stuff- you also have to consider entity structure, exit strategies, risk mitigation, retirement planning and all that hoopla.

Basic Types of Small Business Tax Returns

Before we get too far along, there are some basics to get out of the way. You might already know all this stuff but there are others who don’t so please bear with us as we run through some small business tax preparation scenarios-

Entity	Tax Return	Form
Trade Names, DBAs Sole Props	Schedule C, Individual Tax Return.	1040
Single Member LLC	Schedule C, Individual Tax Return.	1040
Multi-Member LLC Husband and Wife	Community Property State– Schedule C, Jointly Filed Individual Tax Return.	1040
Multi-Member LLC Husband and Wife	Common Law State– Partnership Tax Return. The Revenue Code is clear on this, yet most tax professionals and attorneys mess it up. It’s hard to enforce.	1065
Multi-Member LLC	Partnership Tax Return.	1065
C Corp or PC	C Corporation Tax Return	1120
S Corp Election	S corporations do not exist. Rather an underlying entity, such as an LLC or C Corp, elects to be taxed as an S Corp. Therefore a corporate tax return is filed.	1120S

The rest of this page is written for the small business owner who does not need a partnership (Form 1065) or corporate (Forms 1120 or 1120S) tax return. If you want more information on business entity tax returns, preparation fees and how it all works, please click on the button below-

Business Tax Entity Prep

Guide to filing your business tax returns, scheduling reviews, eFile, and making payments.

Learn More

LLC Tax Preparation

If you are a sole proprietor or a single-member LLC (SMLLC) without an S corporation election, your small business transactions will be reported on Schedule C of your individual tax return (Form 1040). As you might know, a single-member LLC is considered a disregarded entity, therefore it does not have a separate small business tax return- this is a common misconception. However, this is an IRS thing and you might still have a separate state filing requirement. For example, California has a franchise tax that is reported on Form 568 even if you are considered disregarded by the IRS. Texas and other states have something similar.

Our fee for this tax return preparation is typically $800 to $1,000. Where you fall in this range will depend on how much stuff you have going on. Good organization can overcome complexity… then again, being disorganized can make the simplest of small businesses seem like a full audit of Google. Either way we can help- it’s what we do all day, every day.

For example, many small business owners have a home office, yet they might also have another work location. This needs to be handled correctly to not have the home office disallowed. Automobiles? Should the company own it or should you? Mileage deduction or actual expenses? These too must be properly discussed and accounted for on your tax returns. We will also help with SEP IRA (old school) or solo 401k plan (new school) contributions calculations, and determine what the best course of action is.

If you created a limited liability company with your spouse, you can elect to be treated as a qualified joint venture only if you live in a community property state. The IRS views a multi-member LLC (MMLLC as opposed to SMLLC) as a partnership, and therefore the IRS is expecting a partnership tax return on Form 1065 and K-1s issued to the partners. Yuck. This is a huge distinction!

For small business tax preparation, click on the button below-

Small Business Tax Prep Checklist

Tax deadlines and preparation tips for individuals and businesses – stay informed and plan ahead!

Learn More

Small Business Tax Deductions

There are several tax deductions available to small business owners regardless if you are an LLC, partnership or an entity taxed as an S Corp. The obvious ones like printer paper and business cards are easy. But what about cell phones? What is the business use of a shared family plan? How about home offices? Business meals- is it 50% or 100%? When can a meal be 100% deducted? Spoiler alert- a pizza party for the office is 100% deductible, but if the office is just you, then No. But if the office is you and your spouse, then Yes. Boom!

Self-employed health insurance and health savings accounts (HSAs) can be tricky, and many small business owners leave money on the table by deducting these on Schedule A versus Form 1040. Schedule A has tall hurdles to allow for deducting medical expenses including health insurance premiums. This little “gotchya” could cost you several hundred dollars in taxes. Have you considered a Health Reimbursement Arrangement (HRA) or a Flexible Spending Account (FSA) for deducting dependent care benefits? Being a business owner has long hours and lousy pay- squeeze as much out of it as you can!

These are the type of things WCG will consult with you. Oftentimes the taxpayer or small business owner gets in trouble because he or she did not understand the rules. Once you know the rules and how to apply the rules, owners can take advantage of small business tax deductions without worry or concern. Please click on the button below for more information-

Small Biz Tax Deductions

Get expert tips on tax deductions and fringe benefits from our guide to LLCs and S Corps.

Accountable Plan

Learn how an accountable plan saves taxes and maximizes reimbursements for your business.

Home Office Worksheet

Use this worksheet to provide your home office details for tax prep via digital or PDF form.

Vehicle Expense Worksheet

Complete your vehicle expenses worksheet online or download the PDF to submit via Sharefile.

Avoid Self-Employment Taxes

Understand differences between sole proprietorships, SMLLCs, and S Corporations for taxation.

Tax Home Defined

Learn about tax home implications and why forming a business in another state isn’t a loophole.

Self Employed 401k Plan

Once you launch your shiny new small business, you might also consider the several small business retirement plans which include solo 401k plans, profit sharing plans, cash balance and defined benefits pensions. For example, with a solo 401k plan or self employed 401k plan piggybacked with a defined benefits pension, you could sock away over $192,000 at age 50. All tax deferred if you like, which could yield a savings of over $86,000 (assuming a 45% marginal tax rate with federal and state). Wow!

Can’t contribute to a Roth IRA because you make too much? Perhaps a solo 401k plan with Roth option is your best bet with high contribution limits and no income phaseouts. Fidelity, TD Ameritrade, Schwab, etc. offer solo 401k plans, but they do not have a Roth option in the plan provision. WCG (formerly Watson CPA Group) is a 401k plan third party administrator (which means we created our own 401k plan document) that has a Roth option. In turn, the big boys at Fidelity, TD Ameritrade and Schwab will honor our 401k plan document to be the custodian of your 401k. Huh? Contact us for more information!

Note how we purposely did not mention SEP IRAs. These are old school and are usually designed to be crisis management tools (after the fact) rather than good planning tools and more product self employed retirement plans. Read more about the various self employed retirement options, including retirement tax bombs and the difference between tax deferral and tax savings below-

Self-Employed Retirement

Learn about retirement planning, defined benefit plans, deferrals, and contributions.

Turbo Charged 401K Plans

Click here to maximize your 401k with options like profit sharing or cash balance plans effortlessly.

Self Directed IRA

Explore how self-directed IRAs offer control for investing in rental properties and more!

Self Directed IRA Problems

Learn about IRA restrictions, prohibited transactions, protecting your retirement funds.

Retirement Tax Bomb

Learn how tax deferrals can be beneficial for your retirement planning and wealth building.

Tax Deferral Concerns

Find out how tax deferrals and smart investing can work in your favor with simple strategies.

Business Advisory Services

WCG CPAs & Advisors specializes in small businesses who generally have fewer than 25 employees. Why? We want to help people, and more importantly we want to help the business owner directly. Frankly speaking, once a business gets to a certain size management layers get in the way of owner access. Access allows us to ensure the owner(s) are leveraging the most out of their business for themselves and their families.

Because small business is a core competency for us, we have created Business Advisory Service platforms which include these really cool things-

	Vail	Telluride	Aspen
Compliance & Preparation
Business Entity Tax Return (Form 1065, 1120, 1120S) [more]
Business Tax Projections (Franchise, Privilege, Receipts)
Individual Tax Return (Form 1040, joint filing) [more]
Tax Return Review Meeting
Tax Resolution, Audit Defense [more]	Advanced	Advanced	Advanced
State Income Apportionment, Nexus [more]	Add-On	Add-On	Add-On
Expat / Foreign Income Filings (FBAR, 8938) [more]	Add-On	Add-On	Add-On
Strategic Tax Planning
Tax Advisory, Tax Reduction, Business Reviews [more]	2 Sessions	2 Sessions	Custom
Pre-Planning Meeting (May/Jun)
Household Tax Projections [more]
Business PTET Optimization [more]
Payroll Planning, Optimization [more]
Reasonable Shareholder Salary Calculation (RCReports)
Tax Projections Review Meeting (Jul/Aug)
Section 199A Deduction Optimization [more]
Small Business Tax Deductions Optimization [more]
Estimated Income Tax Calcs (via Payroll) [more]
End of Year Wrap-Up Meeting (Oct/Nov) [more]
Situational Tax Law Research (up to 3 hours)
Payroll & Accounting
Monthly Shareholder Payroll Processing[more]	DIY	DIY	DIY
Quarterly QuickBooks Consulting (QuickStart) [more]	Add-On	Add-On
Accounting Services (Bookkeeping + Analysis) [more]	Add-On	Add-On	Add-On
Financial Statement Review [Reach Reporting]	Inc with AST	Inc with AST	Inc with AST
Business Advisory & Support
Periodic Quick Chats (May-Nov) [more]	3 Chats	3 Chats	Routine
Interfacing with Lenders, Attorneys, Planners	Add-On	Routine	Routine
CPA Concierge Services [more]	Add-On	Add-On
Financial Analysis (Cash Flow, Budgeting, KPIs)
Annual Corporate Governance (Resolutions)	Add-On	Add-On
Annual Fee*	$4,500	$4,980	Custom
Paid Monthly	$375	$415	Custom
	(prorated based on onboarding date)

The primary difference between Vail and Telluride is business entity tax projections which focuses on state-level taxes such as franchise taxes and pass-through entity tax calculations. See below for more details.

Custom! Unlike the modern day new car packages where you have to spend $8,000 for the moonroof, our Business Advisory Service plans can be customized specifically for you. The array above is simply a starting point. If you need more or less from us, let’s chat about it!

Fees Updated! Our Business Advisory, Investor Patrol and Tax Patrol Service fees were updated August 2024, and we usually hold fees for at least two years (or through December 31, 2026) unless inflation skyrockets back to 9%.

*The Asterisk

Yeah, we all dislike the little asterisk. The gotcha! The fine print! Well, here is one of those situations. Tax projections under our Vail platform does not include business-entity tax projections and payments (California’s Franchise Tax, New Jersey’s BAIT, Portland’s overall madness, NYC, etc.), pass-through entity tax (PTET) calculations and payments, among other things. Not every business entity needs separate tax projections or planning! Texas, No. California, Yes.

Please see our Tax Planning Services page and Master Service Agreement for more information.Our Telluride Business Advisory plan includes entity specific tax projections as we just described plus interfacing with lenders, attorneys and financial planners (yawn). Here is a quickie listing of our tax planning service levels-

Tax Projections- simple tax liability calculation based on your projected data. We call this "your facts, your tax." This is included with all advisory platforms (business, tax patrol, investor tax patrol).
Tax Advisory- a decision, or a few decisions, needs to be made based on tax consequence. This is project based, and is quoted based on the scope. Advisory engagements receive 90 minutes of tax advisory.
Tax Strategy- a series of what-if, scenario based outcomes over several years needs to be analyzed to make decisions today, and along the way. This too is project based and quoted.

Afraid of bait and switch? Yeah, we think that stinks too. Our annual fee for Vail, as an example, is $4,500. What can make this fee go up? The most prominent reason is additional state tax returns (taxing jurisdictions). However, we will detail that in your proposal. Please see our individual and business entity tax return preparation pages for more information.

Quarterly financial statements analysis is an add-on service, however it is included automatically if you use our accounting services.

Business Advisory Services Explained

We explain the need for Business Advisory Services and who it is built for.

Master Service Agreement

Our proposals incorporate a Master Service Agreement (MSA) which is legal speak for fine print.

Sample Advisory Proposal

See a sample of our Business Advisory Services proposal and scope of work.

Tax Patrol Services

We also have Tax Patrol! This is another wonderful tax service for those who don’t need business advisory services or real estate investment support, but from time to time want some love from an experienced tax consultant and business advisor. Have a quick tax question? Need to know the depreciation rules as you buy that new car? Wondering what your April tax bill is going to be in August? Your spouse upgraded to a different job- how is that going to affect things? You received a big bonus- yay, but how will that impact your tax bill?

	Keystone	Copper	Breck
Individual Tax Return Prep (Form 1040, joint filing) [more]
Business Entity Tax Return Prep (Form 1065, 1120, 1120S) [more]
Household Tax Projection [more]
Business Tax Projections, PTET Calcs, SALT Workaround [more]
Estimated Tax Payments Calcs
Tax Resolution, Audit Defense [more]	Advanced	Advanced	Advanced
Complimentary Quick Chats (CQC) [more]	Routine	Routine	Routine
Annual Fee*	$1,740	$2,400	$3,360
Paid Monthly	$145	$200	$280
	(prorated based on onboarding date)

Our Copper and Breck Tax Patrol Services platforms do not include reasonable owner salary recommendations and optimization, including 401k, fringe benefit and health insurance matters as they relate to payroll processing. Should you require these services, our Business Advisory platforms (Vail, Telluride, Aspen) above, like way above, might be a better fit.

Real Estate Investor Services

On one hand we have our Business Advisory Service plans which are very comprehensive yet might contain some services that not everyone needs such as salary optimization, payroll processing, multiple tax planning events, among other things.

On the other hand we have transactional relationships where clients come in each spring for tax return preparation, and that’s all they need. No questions. No tax planning. Just a pile of tax documents and a few discussions later and bada bing bada boom they have a tax return and a nice summer.

Is there an in-between? Boom! We have Investor Tax Patrol which is a fancy add-on to our Keystone Tax Patrol platform above.

Investor Tax Patrol is a wonderful tax service for those who don’t need all the advisory bells and whistles, but desire tax planning and, at times, scenario-based decision making assistance from an experienced real estate CPA and tax consultant. Have a quick tax question? Need to know the depreciation rules as you furnish that new short-term rental? Want to kick around Real Estate Professional designation? Wondering what your April tax bill is going to be in August?

Consider these typical fees for a tax-only engagement for rental property tax return preparation. We'll get into an example in a bit-

Rental Property Tax Return Preparation

Here are typical rental property tax prep fees that might be added to your individual tax return (Schedule E reported on Form 1040) or partnership tax return (Form 8825 reported on Form 1065).

Please keep in mind that each rental property is a small business with varying complexity. Operating expenses, improvements, home office deduction including travel, automobile expenses, paying your children, allocated expenses among several rentals among other nuances are business-like considerations and add to the comprehensiveness that WCG provides with rental tax return preparation (learn about our Rental Expert Pod as well).

Rental Tax Prep, Prepared Financials (Rental Bookkeeping)	$100 ea
Rental Tax Prep, Clean DIY Records (The SRO Template)	$150 ea
Rental Tax Prep, Complex or Messy Records (disguised disorganization)	$200 ea

Add On: Existing Rental converting to STR	$75
Add On: Streamlined State Tax Return (in addition to your resident state)	$125 to $200
Add On: Complex State Tax Return (see below for what makes complex, complex)	$250 to $400
Add On: Cost Seg Setup + 3115 / 481(a) Calc, Existing Rental Prior to 2025	$625
Add On: Short-Term Rental Activities (non-investor patrol)	$75
Add On: Rental Property Sale	$250
Add On: 1031 Like-Kind Exchange and New Setup	$450
Add On: Complex 1031 (2:1, 1:2) and New Setup(s)	$750

Investor Tax Patrol Example Time

As promised, let's get into an example. Let's say you have 2 rentals, with one being a short-term rental in another state.

Keystone Tax Patrol (as our base)	$1,740
First Rental Included	$0
Second Rental, Short-Term	$175
Streamlined Additional State Tax Return	$125
Annual Fee	$2,040
Monthly	$170

Custom! In the past we tried to have a "3 platform" approach to our rental property owners and real estate investors like we do for business advisory and tax patrol above. There is just way too much customization with rentals- one size fits all is great, but rentals are like snowflakes.

Investor Patrol is specifically designed to give you the freedom to call, text or email us without the worry of being nickeled and dimed like other outdated CPA firms. And! We also provide a tax planning event (usually around May, June and July) where we gather up your financial records like paystubs, rental activities, stock sales, etc. and we create a mock tax return projecting your annual income and eventual tax obligations. We are not big on surprises… bad news in August is palatable, yet bad news on April 15 is unacceptable. Let’s not forget that Investor Patrol also includes IRS audit defense for any tax return that we prepare. Please review our full Investor Patrol Services webpage for all kinds of fine print for your consideration. It’s really not that much.

Also, please check out our rental property book titled I Just Got A Rental, What Do I Do? This is our second book. Our first book, Taxpayer’s Comprehensive Guide to LLCs and S Corps, was first published in 2014 and was well-received by small business owners and tax professionals, so we thought a book on rental properties and real estate investments would be equally helpful. So, here we are with our second iteration, or the 2025 edition. We plan to update annually.

Real Estate Professional Status (REPS)

Discover how REPS can avoid passive activity loss limitations and rules.

Rental Property Tax Returns

We take a deeper dive into all the ins and out of rental property tax preparation.

Short-Term Rental Loophole

Take advantage of this tax loophole to deduct rental losses without qualifying as a real estate professional.

Rental Property Bookkeeping

Let us handle the books so you can focus on growing your rental property kingdom.

Real Estate Holding Company

Why holding rentals in partnerships can reduce audit risk and support defensible tax deductions.

Partnership Tax Return Preparation

Learn more about our partnership (Form 1065) tax return preparation.

We publish our typical fees, but then again they are scattered across several pages and sections of our website. Click below for a consolidated no thrills fee table that combines all our various fees for tax return preparation, tax resolution, accounting services, payroll processing and business services into a simple one pager (you might have to scroll a bit).

Simplified Fee Table

Our Way of Business

Here are some quickie FAQs to learn more about WCG CPAs & Advisors, and how we do business-

Do you extend a lot of tax returns?

Nope. We have a t-shirt that reads, “Hate extensions. Love our summers.” We file 70% of our tax returns by April 15, and only extend per the client’s request or if there is missing data such as a rogue K-1. We’ll go as quickly as you let us! Also, we don’t have A listers… we prepare tax returns in first-in first-out sequence. Sure, we leave room for emergencies or other issues that allow for jumping the line.

How is Business Advisory different than Tax Patrol or Investor Patrol?

Good question! Our Business Advisory Service plans (Vail, Telluride and Aspen) are more advisory forward like a robust old-fashioned with lots of planning, tax strategies and business consultation to help you make decisions. Our Tax Patrol Services (Keystone, Copper and Breck) are more tax return preparation forward like a refreshing vodka-lemonade with less tax planning, or at least less-intensive planning and consultation.

Investor Patrol Services for our rental property owners and investors is somewhere in-between since real estate is a business like any other requiring more tax planning, strategy and consultation but falls short of needing shareholder payroll planning and processing.

How Often Do We Schedule Meetings?

Up to you, but within a structured framework! In the past, we tried rigid quarterly meetings, but they often felt like a chore for everyone. Then went full tilt the other way with a "call us anytime" approach. Duds on both sides.

Today, we operate on a 'Rhythm of the Relationship' model.

For Business Advisory clients, we generally connect about 8 times a year. This is a mix of strategic milestones where we reach out to you (Pre-Planning, Projections, Year-End Wrap-Ups) and On-Demand Support where you reach out to us (Tax Return Reviews, Advisory Sessions, and Scheduled Periodic Quick Chats). We provide the structure to keep you safe, but your goal is to use the on-demand access to extract everything you need.

And our Tax Patrol including Investor Patrol engagements can expect core strategic coverage including tax return reviews, pre-planning meeting, and tax projections, plus access to the same quick chats when life happens.

We prefer scheduled meetings over Teams. Check out our CPA Concierge Service as well. Priority boarding. HOV lane. Early check-in.

What Is Your Communication Style?

We rely heavily on emails and text message alerts. However, we do not have an allergy to the telephone. During friendly hours (let’s say 8AM to 7PM including weekends) we will usually call first if we have a question or need clarification.

Having said that, email can be an effective communication tool, and it is especially good for questions that require thought and good for memorializing conversations. While email is a chore for most people it can also be a distraction. Your WCG team is no different.

As such, we have two big rules that you need to be aware of-

The tax team, for example, only checks emails on Mondays and Thursdays. While there is no such thing as an accounting emergency, only poor planning, should you be needing a quicker response, then call us! We are committed to responding to your email within 3 business days.
Next, if our response to your email inquiry will take more than 5-10 minutes to write, then we will default to either a) picking up the phone and calling you out of the blue or b) sending you a calendar link so we can discuss it. Email is horribly inefficient. Having said that, we leave room for the expat or the person who works challenging hours or the person in a secure military facility, and needs some love from their tax professional but can only do email. But it cannot be the default.

When we have our amazingly productive and efficient conversation via Teams or phone call, we will always send a recap email to memorialize all the goodies. This recap email also gets captured by our workflow software allowing all other team members to view the recap as necessary.

Who Will I Be Working With?

For tax, we have two-person teams so there is always a backup. Teams are assigned based on who first spoke with you, bandwidth and subject matter expertise. We also have accounting, payroll and business formation / governance. As such, you might have 4 people you work with. Yay! The two tax peeps, and if applicable, a payroll peep to help with setup and training, and an accounting peep (if you are using our Accounting Services team for bookkeeping + analysis). We also have dedicated Client Support and Tax Support teams to… well… support you and the other teams.

Schedule A Discovery Meeting

Are you interested in business advisory services? Just tax return preparation? Do you own a rental property and need assistance? Let's chat!

Let's schedule a 20-minute discovery meeting with one of our Partners or Senior Tax Professionals to understand your tax footprint and objectives, and how WCG CPAs & Advisors might help.

Schedule Meeting

Text WCG Offices

Need to get in touch through a quick text? We’ll respond back within a day and get going!

Call Our Amazing Team

Need to speak to a tax professional now? Give us a call 719-387-9800 and we'll get you connected.

Chat With a Tax Pro

Taxes can be tricky. Chat with a WCG human now and get questions answered.

Additional Business Services

The following are additional business services to get your venture launched and on the way. Some of these are teased out separately as one and done fees like formation and onboarding stuff.

Accounting Services
Monthly Accounting (bookkeeping + analysis) [more]	starting at $525 per month
Bi-Monthly Accounting (bookkeeping + analysis every 2 months)	starting at $280 per month
Quad-Monthly Accounting (bookkeeping + analysis every 4 months)	starting at $190 per month
Annual Compliance Bookkeeping For Tax Return Prep [more]	typically $1,200 annually
Annual Accounting	starting at $1,800 annually
Rental Property Bookkeeping [more]	starting at $1,200 annually
Sales Tax	typically $75 per month
	typically $150 per quarter
Personal Property Tax	typically $40 per month
	or starting at $500 annually

Fine Print: Starting accounting service fees are based on 2 bank accounts (one checking account and one credit card is 2 accounts) with less than 250 monthly transactions. Our fee does not include the QBO subscription fee from Intuit. Custom quote is available if you have a lot going on such as third-party integrations (POS, time billing system), accrual accounting method, extensive benefits packages and / or industry specific issues (e.g, job costing in construction). The first step for Accounting Services is to do an accounting assessment with one of our experts to determine scope, service level and ultimate fee (see button below).

Business Formation
Articles of Organization or Incorporation, or Dissolution	$625 + state filing fee
Initial Report (if required)	$125 + state filing fee
Annual Report	$350 + state filing fee
Employer Identification Number (EIN)	Included
Single Member Operating Agreement (SMLLC)	Included
MS Word Templated Bylaws Agreement (Corporations)	Included
S Corp Election, Timely Election (made with formation)	Included
Accountable Plan	Included

Onboarding Fees (one and done)
Payroll Accounts Setup, Transfer, Closing	$550 to $650 depending on state
Payroll Quick Launch, Account Setup	$950 to $1,050 depending on state
Accounting Setup or Transfer (Fractional Controller) [more]	Varies
QuickStart, QuickBooks Setup and Support (90 days) [more]	$750
S Corp Election, Timely Election (within 75 days)	$450
Late S Corp Election Back to January 2024 [more]	$600, $1,200 after Jan 1 2024*
Examine Prior Tax Return	Included

For late S Corp elections back to January, we have a split fee of $600 or $1,200… and it depends on if we can file your S Corp by March 15. Ideally, we attach the late S Corp election to the tax return and file both electronically. Yay! Conversely, if we cannot file on March 15, we also cannot electronically extend the tax return. As such, when we file in June or July, it is now considered late. We can usually have the penalties abated, but it takes effort hence the additional $600 fee (the $600 v. $1,200). Be a hero, and get us your stuff right away to save a few bucks and trim down the anxiety.

Business Maintenance
Entity Relocation Package (payroll closure and opening, entity move) [more]	$800 (some are $1,050) + state filing fees
Address Changes w/o Payroll (IRS, State Dept of Revenue, Secretary of State)	$250 + state filing fees
Address Changes with Payroll (above + state and local payroll agencies)	$350 to $450 + state filing fees

Our entity relocation package includes closing your current payroll accounts, opening shiny new ones, moving your entity with the Secretary of State (if applicable) and updating addresses as necessary.

Speaking of address changes… these are tough. Basic address changes require IRS, State Department of Revenue and Secretary of State notifications. Address changes that include payroll add another level of complexity since departments of revenue are not the same as departments of labor, and there might be local or municipal agencies as well.

Accounting Services (Bookkeeping)

Best reason to use a small business accountant is to allow you to do what you do best with your time.

Accounting Assessment

Learn how WCG can help you with your Accounting Assessment needs.

Reasonable Shareholder Salary

Determining a reasonable shareholder salary and reasonable officer compensation is the murkiest part of running an S corporation.

Business Formation

Business entity selection is important, but it is not cast in stone. Many businesses often start off as one entity type, and then later convert.

Address Changes are Messy

A lot of small business owners, especially solo operators, work from their home office.

Late S Corp Election

The S Corp election takes your LLC (or PLLC or C Corp or PC) and changes the way it is taxed to reduce self-employment taxes. The underlying entity remains intact. Only the way it is taxed changes.

Advisory Services Fine Print

Prorated Fees

WCG’s advisory engagements are billed on an annualized basis and are tied to defined deliverables and scheduled advisory touchpoints. These typically include tax return preparation and review, a pre-planning meeting, a tax projection deliverable and review, and periodic scheduled quick chats (May to Nov). Our Business Advisory Services (BAS) engagements also include tax advisory meetings and an end-of-year wrap-up meeting. Because these services are scheduled and delivered over the course of the year, our annual advisory fee does not fluctuate based on when individual services are used or delivered.

When an engagement begins partway through the year, the total annual fee is prorated over the remaining months of the year. As a result, the monthly billing amount will be higher, even though the annual fee itself remains unchanged and reflects the full scope of advisory work to be delivered.

The August Switch-A-Roo

Beginning in August, WCG no longer bundles tax return preparation into new annual advisory engagements. Frankly, bundling everything into a single monthly number can look unusually high and distract from the actual year-round planning work we deliver. Instead, advisory services will be structured as a custom annual fee covering the remaining or needed planning and advisory work, including pre-planning meetings, tax projections and reviews, tax advisory meetings, periodic scheduled quick chats, and an end-of-year wrap-up meeting.

Tax return preparation including review will be invoiced separately at the time the tax return is prepared, typically during the following tax season. This structure more closely aligns advisory fees with year-round planning work and separates compliance services that occur at a different point in time.

Payroll Processing

WCG has shifted payroll to a setup-and-planning model. Ongoing payroll processing is not sustainable at the market price point for a CPA firm, and this change allows our tax advisors to focus on higher-impact tax planning and strategy for clients. It also allows our team to spend more time on tax return optimization. In short, we are doubling down on what we do best.

We continue to support payroll through proper account setup, training, and payroll planning, while ADP handles the compliance engine, including calculations, filings, deposits, and year-end forms. This approach provides clients with flexibility and control while ensuring payroll is handled correctly. Learn more here.

Tax Returns

You can prepare your own individual tax return as well… but the benefit of WCG preparing both individual and business tax returns is that we can slide things around depending on income limitations, phaseouts, Section 199A deduction optimization, pass-through entity tax deductions (PTET), etc. Having our arms around both worlds can create real tax savings!

Note: An individual tax return is what the IRS calls Form 1040 and refers to the entity filing the tax return (you, the individual, are the entity). However, a married couple are deemed to be one entity for the sake of an individual tax return. So, when we say we will prepare your individual tax return, it is meant to include your spouse in a jointly filed happy happy joy joy tax return.

Break-Even Analysis (does an S Corp make sense?)

Break-even analysis is based on our annual advisory fee of $4,500 for our Vail package plus the expected cost of you processing your payroll through ADP of around $900. If an S corporation saves you 8% to 10% (on average) in taxes over the garden-variety LLC, then $5,400 divided by 9% equals $60,000 of net ordinary business income (profit) after expenses and deductions.

This doesn’t factor in the lower audit rate of S Corps versus Schedule C activities, plus the ability to use business funds to pay for your state income taxes otherwise known as the Pass-Thru Entity Tax Deduction (PTET) or the great SALT workaround.

More sales pitch! Keep in mind that our fee of $4,500 includes your individual tax return which you might already be paying another tax professional to prepare. WCG CPAs & Advisors has a handful of clients who are right at the break-even point of $60,000 but leverage an S Corp and our services to get tax return preparation, tax strategies and consultation.

No BS

We are not salespeople. We are not putting lipstick on a pig, and trying to convince you to love it, even if Tom Ford’s Wild Ginger looks amazing. Our job remains being professionally detached, giving you information and letting you decide.
Moreover, many CPAs and tax professionals thrust their risk aversion onto their clients. This is bad. At WCG CPAs & Advisors we must perform our due diligence and hurdle our ethical and professional standards. However, after those gymnastics we present a risk-based analysis to the tax return and let you, the client and taxpayer, decide how to proceed. Having said that, we don’t entertain tax scammers or those who can take down the ship. Arthur Anderson anyone? No thanks.

We also see far too many crazy schemes and half-baked ideas from attorneys and wealth managers. In some cases, they are good ideas. In most cases, all the entities, layering and mixed ownership is only the illusion of precision. Just because you can complicate the crap out of your life doesn’t mean you must. Just like Chris Rock says, just because you can drive your car with your feet doesn’t make it a good idea.

Next Steps

Here is a brief summary of the next steps should you want to engage WCG with Business Advisory Services or Tax Patrol-

We schedule an appointment to discuss your needs and ensure that we have the proper resources to help you.
We draft a proposal outlining the scope of services and our fixed annual fee.
If necessary, we schedule another appointment to review the proposal and perhaps tighten things up or make changes.
Once the proposal is signed, the fun begins with onboarding. We have an extensive checklist and internal task list to properly onboard you and your business. Some things are concurrent (such as gathering housekeeping docs and setting up payroll) and some things are sequential (for example, collecting financial data and then offering salary recommendations and creating a tax plan). Onboarding is like having a baby; a SWAT team shows up and does a zillion things, and poof, everyone is gone except for mom and baby.
After onboarding (usually 4-6 weeks), things settle down into a rhythm- Tax preparation in the spring, tax planning in the summer, with payroll and routine consultation bouncing along throughout the year.

New S Corp Puppy

Your corporation or LLC taxed as S Corp shouldn’t change much but there are some gotchyas.

Periodic Business Review

WCG are business consultants first and accountants second.

Late S Corp Election

Late S Corp election can easily be done well into 2025 for 2024 but there are hiccups.

Our Business And Rental Expertise

As mentioned elsewhere we primarily focus on small business owners and real estate investors, and their unique consultation and tax preparation needs. With over 90 full-time consultation professionals including Certified Public Accountants, Enrolled Agents and Certified Financial Planners on your team, WCG CPAs & Advisors consults on custom business structures, multiple entity arrangements, S corp elections (even late S corp elections back to January), tax strategies, business coaching, industry analysis, executive benefits, retirement planning including individual 401k plans, exit strategies, business valuations, income tax planning and modeling, and tax representation.

We also work with business law attorneys for business owners who have additional needs such as drafting Operating Agreements, fee for service contracts, buying or selling a business including employee stock ownership plans and partner buy-ins. In addition, WCG coordinates with third party plan administrators create age-based profit sharing plans and cash balance (defined benefit) plans. We can run point on whatever your business needs to ensure that communication is effective and efficient allowing you to sell widgets.

Here are some additional resources you might find useful.

Periodic Business Review

Yes, you want to get a little extra from your hard work and you want this to be tax-advantaged.

Tax Planning

Accurate estimated tax payments come from proper tax planning. There is nothing worse than the fear of the unknown since most human responses will be the worse case scenario.

Business Tax Deductions

Learn more about how WCG can help you with business tax deductions.

Online Accountant

WCG has been remotely preparing tax returns since 2007 using secure online client portals, text messaging, videoconferencing, and other technologies.

Business Support Portal

Everything you need from small business tax preparation to S Corp elections to payroll to accounting is located here. Need consultation?

Tax Center

Welcome to the Tax Center Portal! Everything you need from tax return preparation for your small business to your rental to your corporation is here.

Business Valuation

Jason Watson, CPA, CVA is trained by the American Institute of CPAs and the National Association of Certified Valuation Analysts (CVA) for Business Valuation. Jason has represented several buyers and sellers in business acquisitions, and has helped divorcing couples value a small business for divorce property settlements. When performing business consultation and business valuation services under engagement, his hourly fee is $350 with a retainer of $5,000 to $8,000 depending on the complexity of the case. Depositions and trial testimony are $450 per hour (possibly with an additional retainer).

Additional Fees

We also have a short list of additional fees that might be incurred depending on your tax and accounting situation, and your level of readiness-

Various Things
Copying and returning of original tax documents	$45
Significant changes or additions after a preliminary tax return is prepared- “crud, let me re-work all my numbers.”	$250 / hr
Tax resolution and/or audit assistance; Resolution is typically 2 hours; audit assistance is typically two 2-hour sessions	$375 / hr
Lender or “comfort” letters	$250 to $600
Business Valuations	$5,000 – $8,000 retainer, $350 / hr
Divorce Analysis, Litigation Support	$250 / hr, $350 / hr for court
Client Support, Administrative billable rate	$150 / hr
Accountant billable rate	$150 / hr
Supervisor billable rate	$250 / hr
Manager billable rate	$300 / hr
Partner billable rate	$400 / hr
Managing Partner billable rate	$450 / hr
Senior Partner billable rate	$475 to $525 / hr

Wow! We really belabored the heck out of those hourly rates there at the end, didn’t we? All in the interest of tax preparation fee transparency of a growing firm.

Also! Please keep in mind that we pride ourselves in not being the nickel and dime type of tax and accounting firm. Typically, we can offer a fee range or a maximum limit for our services and fees to keep your tax prep cost where you want it. This is what we do all day, every day! We have a solid understanding of what it takes to complete a project successfully.

WCG CPAs & Advisors is a full-service yet boutique progressive tax, accounting and business consultation firm located in Colorado serving clients worldwide.

Table Of Contents

Tax Planning Season

Tax planning season is here! Let's schedule a time to review tax reduction strategies and generate a mock tax return.

Tax Planning Services

Bookkeeping Services

Tired of maintaining your own books? Seems like a chore to offload?

Accounting Services

Professional Consultation

Did you want to chat about this? Do you have questions about Small Business Tax Preparation? Let’s chat!

The tax advisors, business consultants and rental property experts at WCG CPAs & Advisors are not salespeople; we are not putting lipstick on a pig expecting you to love it. Our job remains being professionally detached, giving you information and letting you decide within our ethical guidelines and your risk profiles.

We see far too many crazy schemes and half-baked ideas from attorneys and wealth managers. In some cases, they are good ideas. In most cases, all the entities, layering and mixed ownership is only the illusion of precision. As Chris Rock says, just because you can drive your car with your feet doesn’t make it a good idea. In other words, let’s not automatically convert “you can” into “you must.”

Let’s chat so you can be smart about it.

We typically schedule a 20-minute complimentary quick chat with one of our Partners or our amazing Senior Tax Professionals to determine if we are a good fit for each other, and how an engagement with our team looks. Tax returns only? Business advisory? Tax strategy and planning? Rental property support?