WCG Fee Structure
By Jason Watson, CPA
Posted Wednesday, October 13, 2021
We pride ourselves in being transparent and having a simple fee structure. Most business services and tax returns will fit into the fees described below. Sure, there’s always the outlier or the unusual situation, but the following information gives you an idea of our philosophy. We only have time on this earth to sell, and we cannot inventory it. Our fees are an attempt to coincide with expected time spent.
Individual Tax Prep
We competitively offer a simple fee range of $600 to $800 for most individual tax returns (Form 1040). Small biz, rentals and state included.
Small Biz, LLCs, Rentals Tax Prep
Small businesses are commonly reported on your individual tax return on Schedule C. Rental activities are reported on Schedule E. Typical fee range is $600 to $800.
Partnerships, Corps Tax Prep
Fee range is $1,000 to $1,200 for partnership (Form 1065) and corporate tax returns (Form 1120 and 1120S).
Business Formation
We can create a business or corporation for $425 plus the state filing fees. Includes Articles, EIN, Operating Agreement and S Corp election.
S Corp Election
We can elect your entity to be taxed as an S corporation for $250 (timely) or $450 (late).
S Corp Costs
People want to know costs, and while this might seem like more shameless self-promotion, you still need to understand what you are getting into. WCG specializes in S corporations which have a small number of shareholders, and often just a one-person show.
Sales pitch alert! WCG specializes in small businesses which have a small number of owners, and often just a one-person show. Did you know that 95% of all S Corps have only one shareholder, and 99% of all S Corps have three or fewer shareholders?
Common S Corp candidates and current clients for WCG are consultants, attorneys, financial advisors, insurance agents, physicians, chiropractors, doctors, surgeons, anesthesiologists, nurse anesthetists, real estate agents, contractors, photographers (the profitable ones), online retailers, FBA retailers and good ol’ fashion widget makers, among several others. We also have several medical groups and financial advisor teams operating multi-tiered entity structures.
The tax savings of an S corporation is not in dispute. But what does it cost to have tax preparation, payroll, tax planning and consultation done? Because small businesses are a core competency for us, we have created Business Advisory Services packages that includes the following-
| A la Carte* | Vail | Telluride | Aspen | |
2022 Tax Planning and Preparation |
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| Tax Planning, Tax Projection Worksheets | $350 to $500 | |||
| Small Business Tax Deductions Optimization | Included | |||
| Section 199A QBI Tax and Salary Optimization | $300 | |||
| Estimated Tax Payments (thru payroll)td> | inc. or $75 per | |||
| Business Entity Tax Return Prep (Form 1065, 1120, 1120S) | $1,000 to $1,200 | |||
| Individual Tax Return Prep (Form 1040, joint filing) | $600 to $800 | |||
| Expat / Foreign Income Calcs (Form 2555, FBAR, Form 8938) | $300 to $500 | Add-On | Add-On | Add-On |
| IRS Audit Defense | NA | |||
| Situational Tax Law Research (up to 3 hours annually) | $750 | |||
2022 Payroll |
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| Reasonable Shareholder Salary Calculation (RCReports) | $400 | |||
| Monthly Shareholder Payroll (up to 3 shareholders) | $1,200 | |||
| Employee Payroll (up to 25 EEs, bi-weekly, direct deposit) | $300 per month | Add-On | ||
| Annual Payroll Processing (W-2s, up to five 1099’s) | Included | |||
Business Advisory Services |
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| Consulting | ||||
| Business Consultation, Periodic Business Reviews (PBR) | $1,000 | Quarterly | Unlimited | Unlimited |
| Complimentary Quick Chats (CQC) | $250 to $500 | Unlimited | Unlimited | Unlimited |
| Interfacing with Lenders, Attorneys, Financial Planners | $500 | Unlimited | Unlimited | |
| Financial Analysis | ||||
| QuickBooks, Xero Consulting | $500 | |||
| Accounting Services (bookkeeping + analysis… see below) | NA | Add-On | Add-On | Add-On |
| Fractional Controller (monitoring 3rd party bookkeeping) | NA | Add-On | Add-On | Add-On |
| Financial Statements Analysis, Comparisons | $1,200 | Quarterly | Quarterly | |
| Cash Flow Management and Analysis | $750 to $1,000 | |||
| First Research Reports, Industry-Focused Consulting | $350 to $600 | |||
| National and Metro Economic Reports | $150 | |||
| KPI Analysis, Benchmarking, Hot Sheets, Trend Analysis | $750 to $1,000 | |||
| Budgeting, Forecasting, Goal Setting | $750 to $1,000 | |||
| Strategy and Maintenance | ||||
| C-Level Advice and Strategic Planning (Fractional CFO) | $2,000 to $3,000 | |||
| Succession Planning, Ownership Changes Consultation | $750 to $1,000 | |||
| Annual Business Valuation | $2,500 to $3,000 | |||
| Annual Corporate Governance, Resolutions, Meetings | $150 | |||
| Annual Fee | $3,420 | $5,760 | $8,160 | |
| Monthly Fee | $285 | $480 | $680 | |
| (prorated based on onboarding date) | ||||
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 from us, let’s chat about it!
Tax Patrol Services
We also have Tax Patrol! This is a wonderful tax service for those who don’t need all the business advisory bells and whistles above, 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? Tax Patrol is like ski patrol… you might not use it, but you sleep better knowing you have it.
| A la Carte* | Keystone | Copper | Breck | |
| Individual Tax Return Prep (Form 1040, joint filing) | $600 to $800 | |||
| Business Entity Tax Return Prep (Form 1065, 1120, 1120S) | $1,000 to $1,200 | |||
| Tax Planning, Tax Projection Worksheets | $350 to $500 | |||
| Estimated Tax Payments Calcs | Included | |||
| IRS Audit Defense | NA | |||
| Complimentary Quick Chats (CQC) | $250 to $500 | Unlimited | Unlimited | Unlimited |
| Annual Fee | $1,080 | $1,680 | $2,280 | |
| Monthly Fee | $90 | $140 | $190 | |
| (prorated based on onboarding date) | ||||
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, Payroll* |
|
| Monthly Accounting (bookkeeping + analysis) | starting at $400 / month |
| Bi-Monthly Accounting (bookkeeping + analysis every 2 months) | starting at $250 / month |
| QuadMonth Accounting (bookkeeping + analysis every 4 months) | starting at $175 / month |
| Sales Tax, Personal Property Tax | typically $75 / month, $150 / quarter |
| Employee Payroll (up to 5, bi-weekly) | $75 or $160 / month |
| * Accounting fees are based on 2 bank account with less than 250 monthly transactions and include the QBO 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).
Employee payroll can be added to shareholder payroll for $75 per month if already using our Business Advisory Service plans above (e.g, Vail), or $160 for standalone. Custom quote for more than 5 employees and a referral to therapy. |
|
Business Formation |
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| Articles of Organization or Incorporation, Domestic Owners | $425 + state filing fee |
| Articles of Organization or Incorporation, Foreign Owners | $725 + state filing fee |
| Initial Report (if required) | $125 + 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 |
|
| Payroll Accounts Setup or Transfer | $300 to $450 |
| Accounting Setup or Transfer (Fractional Controller) | $300 |
| QuickStart QuickBooks Setup and Support (90 days) | $750 |
| S Corp Election, Timely Election (within 75 days) | $250 |
| Late S Corp Election Back to January 2021 | $450 |
| Examine Prior Tax Returns | Included |
Prorated Fees
Some more things to consider- when a partial year remains, our usual annual fee is pro-rated to not charge you for services you didn’t use (like payroll and consultation). However, a large chunk of our annual fee is tax preparation which is typically a built-in fixed amount of $1,600 (both business entity and individual tax returns). Whether we onboard you in January, July or December, we have to prepare a full year tax return. This increases the monthly fee for the remaining months of 2021 but the monthly fee will later decrease in January of 2022 to reflect the amounts above. Yeah, we make it sound like 2021 is just around the corner.
Payroll Processing
We make very little profits on payroll processing… we offer it as a convenience to our clients. One throat to choke with a single call can be reassuring but if you want to run your payroll, go for it! Everyone thinks payroll is a piece of cake; write a check and done. Nope… we see a lot of mistakes being made by clients especially the handling of health insurance and HSA contributions since there are special rules for greater than 2% S Corp shareholders. Then again, we don’t mind fixing what was broken.
Tax Returns
You can prepare your own individual tax return as well… but the benefit WCG preparing both individual and business tax returns is that we slide things around depending on income limitations and phaseouts.
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 tax return.
Break-Even Analysis (does an S Corp make sense?)
Break-even analysis is based on our annual fee of $3,420. If an S corporation saves you 8% to 10% (on average) in taxes over the garden-variety LLC, then $3,420 divided by 9% equals $38,000 of net ordinary business income after expenses and deductions.
More sales pitch! Keep in mind that our fee of $3,420 includes your individual tax return which you might already be paying another tax professional to prepare. WCG has a handful of clients who are right at the break-even point of $38,000 but leverage an S Corp and our services to get tax preparation, tax planning and consultation.
You can always find someone to do it for less- we know that. At the same time, we have a vested interest in your success and provide sound tax and business consultation as a part of our service. Here is a link to our Periodic Business Review agenda that we cover throughout the year so our consultation to you is comprehensive-
We also have written a webpage on end of year tax planning-
And, to see our entire fee structure (transparency)-
Jason Watson, CPA, is a Senior Partner of WCG, Inc., a boutique yet progressive tax and
consultation firm located in Colorado and South Dakota serving clients worldwide.
Taxpayer's Comprehensive Guide to LLCs and S Corps 2021-2022 Edition
This KB article is an excerpt from our 430-page book (some picture pages, but no scatch and sniff) which is available in paperback from Amazon, as an eBook for Kindle and as a PDF from ClickBank. We used to publish with iTunes and Nook, but keeping up with two different formats was brutal. You can cruise through these KB articles online, click on the fancy buttons below or visit our webpage which provides more information at-
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| $59.95 | $49.95 | $39.95 |
Taxpayer's Comprehensive Guide to LLCs and S Corps 2021-2022 Edition