Tax Return Preparation

Posted Thursday, May 14, 2026

Table Of Contents

Tax Return Preparation

Written by Jason Watson, CPA Senior Partner, WCG CPAs & Advisors | Author of Taxpayer’s Comprehensive Guide to LLCs and S Corps and I Just Got a Rental, What Do I Do? | 20+ years preparing tax returns for business owners, real estate investors, and high-income earners. Last updated: May 2026

Sure, anyone can buy a TurboTax subscription and stumble through a Schedule C. But when you’re running an S Corp with multi-state payroll, holding rental properties in three states, and trying to figure out why your K-1 from that syndication deal has more boxes filled than a bingo card — you need a team that does this all day, every day.

Welcome to our Tax Return Preparation hub — your central resource for understanding what goes into filing a business, rental, or individual tax return with WCG CPAs & Advisors. We handle everything from straightforward single-member LLC returns to complex multi-entity, multi-state situations where the tax code starts reading like a Choose Your Own Adventure book… except every page ends with “consult a tax professional.”

We think of our fees and complexity levels as easy, medium, and hard. We’re from Colorado, so we think in green circles, blue squares, and black diamonds. Most of you are green circles. Some of you are double black diamonds with moguls. Either way, we’ve got you.

Who Is This Page For?

This page is for business owners, real estate investors, and high-income earners who need professional tax return preparation — not just form-filling, but actual strategy baked into your compliance. Specifically:

  • You own a small business and need a partnership (Form 1065), S Corp (Form 1120S), or C Corp (Form 1120) tax return prepared correctly
  • You’re a sole proprietor or single-member LLC wondering what a professional tax preparer actually does differently than software
  • You own rental properties and need someone who understands depreciation, cost segregation, 1031 exchanges, and the short-term rental loophole
  • You operate in multiple states and the words “nexus,” “apportionment,” and “composite return” make your head spin
  • You’re a high-income earner juggling W-2 income, investment accounts, K-1s, and Roth conversions
  • Your books are a mess and you need someone who can clean things up without judging you too harshly (we’ve seen worse, we promise)

If you’re nodding along to any of that, keep reading or jump to the section that matches your world.

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Tax Return Preparation for Every Business Type

Whether you’re filing a Schedule C for your side gig or a multi-entity partnership return with K-1s going in six directions, the goal is the same: an accurate, optimized tax return that doesn’t leave money on the table — and doesn’t create problems with the IRS down the road. We prepare hundreds of business tax returns every year, and 90% of our business entity returns fit in the $1,500 to $1,800 fee range. The other 10%? They know who they are.

Your fee depends on complexity, your tax footprint, and — let’s be honest — the quality of your accounting records. Good organization can overcome complexity. Disorganization can make the simplest of small businesses seem like a full audit of Google. We also review every business tax return with our clients. In-person, phone, or video — we walk through the numbers, the balance sheet, and the two-year comparison so you actually understand what’s being filed on your behalf.

Beyond the annual filing, you might benefit from our Tax Patrol Service, which bundles tax preparation with planning and periodic chats throughout the year. Think of it as ski patrol — you might not need it every run, but you sleep better knowing it’s there.

Small Business Tax Returns

The foundation of what we do. Most small business owners need one of these, and it’s important to know which one applies to you — because the IRS certainly knows.

Business Entity Tax Prep (Form 1065, 1120, 1120S)

Our main hub for partnership and corporation tax returns. Covers base fees ($1,500–$1,800), K-1 preparation, balance sheet tracking, and how we review your return with you. If you need a business entity tax return, start here — it has everything from straightforward partnerships to complex multi-state corporations.

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Small Business Tax Prep (Schedule C / LLC)

For sole proprietors and single-member LLCs operating as disregarded entities. Your business transactions are reported on Schedule C of your individual return (Form 1040). Our fee for this preparation is typically $800 to $1,000. Covers home office, automobile deductions, retirement contributions, and common pitfalls.

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Business Tax Return Review Guide

A comprehensive walkthrough for reviewing your partnership or corporation tax return. Covers the ActionRequired PDF, eFile authorization, K-1 packages, balance sheets, two-year comparisons, and commonly missed deductions. Grab some coffee — this one is long but worth it.

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Business Tax Return Preparation Checklist

What do we need to prepare your business tax returns? What should you be recording throughout the year? Includes our Simplified Business Operations (SBO) Worksheet and a checklist of everything we need beyond revenue and expenses. Even if you don’t use WCG, you might find these tools helpful.

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State & Local Tax Compliance

Where things get… interesting. If you only do business in one state with no rental properties elsewhere, congratulations — you can probably skip this section. For everyone else, welcome to the wild west of state apportionment, nexus analysis, and the maddening reality that each state gets to make up its own rules.

The internet has allowed businesses to operate anywhere, but our founding fathers and mothers in the late 1700s never envisioned interstate commerce the way it is today. To make matters worse, each state has their own way of defining “doing business.” California has bright-line thresholds. Idaho is vague. And states don’t play nicely with each other — at times, the same dollar can be taxed twice. We digress.

At WCG, we take a risk-based approach. Sure, we could file in a zillion states — a payroll dollar here, a sales dollar there — but that’s insane from both a fee and risk perspective. We dig in, determine what’s actually required, and only file where it truly matters.

State Income Apportionment

A deep dive into how state apportionment works — the three-factor formula (sales, payroll, property), nexus rules, composite tax returns, and our risk-based approach to determining filing requirements. Includes WCG’s fee structure: $200–$250 for apportionment calculations per state, $300–$500 for state tax returns per entity. Riveting stuff!

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Sales Tax Update: South Dakota v. Wayfair

The landmark 2018 Supreme Court case that changed the game for economic nexus. Understanding how Wayfair impacts your sales tax obligations — and increasingly, your income tax obligations — is critical for any business selling across state lines.

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One Big Beautiful Bill (OBBB)

The latest federal tax legislation making waves. 100% bonus depreciation is back and it’s loud. Stay current on how this impacts your tax return — from depreciation schedules to pass-through deductions and everything in between.

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Allocation and Throwback Rules

When income doesn’t fit neatly into one state’s apportionment formula, allocation and throwback rules come into play. Understanding these nuances can mean the difference between overpaying and properly managing your state tax burden.

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Real Estate Investor Tax Returns

This is where we really geek out. Rental properties are not just investments — they operate like businesses with unique tax considerations at every stage, from acquisition to sale. Done right, they produce meaningful tax savings. Done wrong, they create long-term problems that follow you through every tax year until you sell (and sometimes beyond).

We wrote an entire book on this — literally. I Just Got a Rental, What Do I Do? has 199 articles covering everything from basic Schedule E reporting to the short-term rental (STR) loophole to cost segregation studies to the tax implications of a 1031 like-kind exchange. There are also strong reasons to consider using a partnership for your rental property, especially for liability protection and estate planning.

Our rental property tax prep fees start at $100 per property with prepared financials and scale based on complexity. Short-term rental activities add $75 each. Cost segregation setup with a Form 3115 and Section 481(a) calculation is $625. These are detailed on our Tax Patrol Services page.

Rental Property Knowledge Base (199 Articles)

Our comprehensive rental property resource — 199 articles covering everything from depreciation to material participation to state tax issues with out-of-state rentals. Whether you’re buying your first duplex or managing a portfolio of short-term rentals, this is your library.

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Cost Segregation in a Nutshell

Cost segregation separates property into shorter-lived asset classes to accelerate depreciation. Standard depreciation takes 27.5 or 39 years — cost segregation can front-load deductions and boost first-year cash flow significantly. Reports start around $750 for smaller properties using statistical models. Properties over $2M typically require a fully engineered analysis.

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Cost Segregation: Mixing High Tech With Sticks and Bricks

The Goldilocks problem — cost segregation has long been a choice between “expensive but thorough” and “cheap but thin.” New approaches using technology are bridging the gap. Understanding your options matters, especially for properties in the $500K to $2M range.

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Cost Segregation Study Guide

A comprehensive chapter from our rental property book covering how cost segregation works in detail — asset classes (5-year, 15-year, 27.5/39-year), passive activity limitations, real estate professional status requirements, and how to apply cost segregation retroactively to prior-year purchases using Form 3115.

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1031 Like-Kind Exchange

Sell a property, defer the taxes, buy another property. Sounds simple, right? The concept is straightforward but the execution requires precise timing, qualified intermediaries, and careful planning to avoid triggering depreciation recapture. Cross-state exchanges add another layer of complexity — just ask California, who requires annual filings into perpetuity.

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Individual & High-Income Tax Returns

Making a lot of money is a good problem to have. The tax bill that comes with it? Less fun. High-income earners face a unique set of challenges — phaseouts, surtaxes, alternative minimum tax calculations, and a tax code that seems designed to punish success. (We digress — we’ll save the editorial for our book.)

The reality is that high-income tax preparation isn’t just about filling out forms accurately. It’s about understanding how every piece fits together — your W-2 income, your business distributions, your K-1s from various investments, your Roth conversion strategy, and your rental property losses. Each decision ripples through your entire return.

At WCG, we don’t just prepare your tax return — we review it in the context of your overall tax strategy. That means looking at financial planning alongside your compliance work, considering whether a Roth 401k versus traditional 401k makes sense for your situation, and making sure your investment strategy and tax strategy are actually working together.

Financial Planning & Tax Strategy

Tax return preparation meets financial planning. For high-income earners, understanding the intersection of investment strategy, retirement planning, and tax optimization is where the real savings happen. We coordinate with your financial advisor so nobody’s making decisions in a vacuum.

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Roth 401k Versus Traditional 401k

Roth contributions are post-tax with higher limits and no income phaseouts — unlike Roth IRAs. But the decision between Roth and traditional isn’t always straightforward. It depends on your age, projected retirement income, and the Rule of 72. We have strong feelings about Roth contributions. Very strong feelings.

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Roth IRAs for High-Income Earners

Income too high for direct Roth IRA contributions? Backdoor Roth conversions, mega backdoor strategies, and understanding the pro-rata rule are essential knowledge. Pair a Roth conversion with a cost segregation study on your rental property and you can offset the tax hit while building tax-free retirement wealth.

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Crash Course on Investing

A broad overview of investment types and how they’re taxed — from capital gains to dividends to interest income to the net investment income tax (NIIT). Understanding how your investments flow through your tax return helps you make smarter decisions throughout the year, not just at filing time.

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Tax Return Complexity & Fees at a Glance

Here’s a side-by-side view of how different business tax returns compare. This isn’t the whole story — every situation has its own quirks — but it gives you a solid starting point for understanding what you’re looking at, what it costs, and when each return type applies.

Feature Schedule C (Sole Prop / LLC) Form 1065 (Partnership) Form 1120S (S Corp) Form 1120 (C Corp)
WCG Base Fee $800–$1,000 $1,500–$1,800 $1,500–$1,800 $1,500–$1,800
Holding Company Fee N/A $1,200 $1,200 $1,200
Foreign-Owned C Corp N/A N/A N/A $2,500 minimum
Filing Deadline April 15 (with Form 1040) March 15 March 15 April 15
Extension Deadline October 15 September 15 September 15 October 15
K-1s Issued No Yes — to all partners Yes — to all shareholders No (dividends instead)
Typical Complexity 🟢 Green Circle 🟢 to 🔵 Blue Square 🟢 to 🔵 Blue Square 🔵 to ⚫ Black Diamond
Common Add-Ons Home office, mileage, retirement State apportionment, K-1 tiers, balance sheet Reasonable salary, payroll, PTET Double taxation planning, built-in gains
State Return Add-On Included (usually) $300–$500/state $300–$500/state $300–$500/state
Best For Solo operators, side hustles, single-member LLCs Multi-member LLCs, rental holding companies, investors Established businesses, 1099 contractors above $60K Venture-backed companies, foreign ownership
Payroll Required No No (unless electing PTET) Yes (reasonable salary) Yes

90% of our business entity tax returns fit in the $1,500–$1,800 range. The other 10% are our special group with complex multi-state operations, messy books, or enough K-1s to wallpaper a room. See our fee structure for the full picture.

Which Tax Return Does Your Business Need?

Use this as a starting point — not a final answer. Every situation has nuances, but this framework covers the most common decision paths we see with our clients. Don’t freak out and snap your pencil — we’ll walk through it together.

What type of business entity do you have?

→ Sole Proprietorship or Single-Member LLC (no S Corp election) You’re filing a Schedule C on your personal return (Form 1040). No separate business tax return is needed. Our fee for this is typically $800 to $1,000. If your net income is pushing above $60,000–$80,000, it’s worth evaluating an S Corp election to reduce self-employment taxes. Learn more about LLC tax prep →

→ Multi-Member LLC (no tax election) You’re a partnership, and you need to file Form 1065. K-1s will be issued to each partner. This is true even if your partner is your spouse in a common law state — a big distinction many tax professionals and attorneys get wrong. Base fee starts at $1,500. Learn more about partnership tax prep →

→ LLC or Corporation with S Corp Election You’re filing Form 1120S. This requires reasonable shareholder compensation (payroll), a balance sheet, and K-1s for each shareholder. It’s the most common entity tax return we prepare. Base fee starts at $1,500. Learn more about S Corp tax returns →

→ C Corporation You’re filing Form 1120. C Corps face double taxation — once at the entity level and again when dividends are distributed. This structure is most common for venture-backed companies, foreign-owned entities, and certain professional corporations. Base fee starts at $1,500; foreign-owned C Corps start at $2,500. Learn more about corporate tax prep →

→ Rental Property Only (owned personally) No separate business return needed. Your rental income goes on Schedule E of Form 1040. But if you own the rental in a partnership entity (recommended for many investors), you’ll need a Form 1065. Rental holding companies start at $1,200. Explore rental property tax resources →

→ Multiple Entities or Multi-State Operations Each entity gets its own tax return. Multi-state operations add apportionment calculations and additional state filings. This is where things move from green circles to blue squares (or black diamonds). Review state apportionment details →

→ Not sure what you have? That’s more common than you think. Schedule a discovery meeting → and we’ll figure it out together.

Real-World Scenarios: How This Plays Out

Tax return preparation doesn’t happen in a vacuum. Here are three real-world scenarios (names changed, numbers realistic) that show how different situations affect what needs to be filed, what it costs, and where the real value comes from having a team that sees the full picture.

Scenario 1: The Solo Consultant Moving to an S Corp

Sarah is a marketing consultant earning $140,000 as a single-member LLC. She’s been filing a Schedule C and paying full self-employment tax — roughly $19,800 per year. After our analysis, she forms an LLC, elects S Corp status, sets a reasonable salary at $65,000, and distributes $75,000. Her self-employment tax drops to approximately $9,900 — saving her about $9,900 annually. After accounting for the additional cost of payroll processing and an S Corp tax return, her net savings are approximately $6,000–$8,000 per year. Every year.

Returns filed: Form 1120S + Form 1040 WCG annual cost: ~$4,500 (Vail Advisory Platform including both returns, tax planning, and quarterly touchpoints) Net benefit: $6,000–$8,000/year in tax savings above the advisory cost

Scenario 2: The Multi-State Partnership with Rental Properties

Mike and his brother own a consulting business as a multi-member LLC (partnership) operating in Colorado, Georgia, and Ohio. They also hold two rental properties in a separate partnership entity — one long-term rental in California and one short-term rental in Tennessee. Their returns involve: two Form 1065s, K-1s for each partner, state apportionment across four states, nonresident state returns, a cost segregation study on the Tennessee STR, and PTET elections in applicable states.

Returns filed: 2 × Form 1065 + 2 × Form 1040 + 6 state returns + K-1 packages Key complexity: State apportionment, composite returns, cost segregation, STR loophole qualification, passive activity tracking Approximate total fee: $8,000–$12,000 across all returns and advisory services Value delivered: Properly structured STR loophole deduction offset $45,000 in W-2 income; composite returns eliminated the need for individual state filings in Georgia and Ohio

Scenario 3: The High-Income Physician with a Side Business

Dr. Patel earns $425,000 in W-2 income as a hospitalist and runs a medical consulting side business through an S Corp generating $85,000. She also has a rental property, three K-1s from investment partnerships, and wants to do a Roth conversion. Her return involves: Form 1120S for the consulting business, Form 1040 with Schedule E, three K-1s (one with multi-state nexus), the Roth conversion strategy paired with a cost segregation study to offset the tax hit, and four state returns.

Returns filed: Form 1120S + Form 1040 + 4 state returns + K-1 integration Key complexity: High income phaseouts, net investment income tax (NIIT), Roth conversion optimization, K-1 basis tracking, passive loss limitations Approximate total fee: $7,000–$9,000 across all returns and advisory Value delivered: Roth conversion paired with cost segregation resulted in zero additional tax on $50,000 conversion — building long-term tax-free retirement wealth

Getting Started with WCG

Ready to get your tax returns handled by a team that actually understands what’s going on? Here’s how it works:

  • Discovery Meeting — A 20-minute complimentary chat with one of our Partners or Senior Tax Professionals. We learn about your situation, you learn about us, and we figure out if we’re a good fit.
  • Proposal — We outline the scope of services, deliverables, and our fixed annual fee. No surprises. No nickel-and-diming.
  • Onboarding — We gather your documents, set up systems, and create a tax plan. Onboarding is like having a baby — a SWAT team shows up and does a zillion things, and poof, everyone’s gone except you and your new tax team.
  • The Rhythm — Tax preparation in the spring, tax planning in the summer, with payroll and routine consultation throughout the year. Learn more about getting started →

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Frequently Asked Questions

Here are some quickie FAQs to learn more about WCG CPAs & Advisors, and how we handle tax return preparation-

What does business tax return preparation actually cost?

For partnership (Form 1065) and corporation (Form 1120/1120S) tax returns, our base fee starts at $1,500, with most returns falling in the $1,500 to $1,800 range. Rental real estate holding companies may qualify for a discounted fee starting at $1,200. About 90% of our business entity returns fit in this range — the other 10% involve significant complexity like multi-state operations, dozens of K-1s, or accounting records that require serious cleanup. LLC Schedule C preparation is typically $800 to $1,000. Check our fee structure page for the full breakdown.Learn more about tax planning services →

Do I need a separate tax return for my rental properties?

If you own a rental personally, it goes on Schedule E of your Form 1040. No separate business return needed. However, if you hold rental property in a multi-member LLC or partnership — which is increasingly common and often recommended for liability and estate planning reasons — you’ll need a separate partnership tax return (Form 1065). You may also owe nonresident state taxes where the property is located, even if the activity loses money. California, for example, requires this — and they’ll want to inspect your books to make sure your loss is truly a loss. Explore our rental property resources →

What happens if my books are a mess when it’s time to file?

We can work with it, but it costs more. Your fee depends largely on the quality of your accounting records, how organized you are, and the past accuracy of your balance sheet. We cannot repeat or continue with ghosts of poor accounting past — that’s a direct quote from our corporate tax prep page. Significant cleanup requires additional preparation time and fees. The better approach? Keep clean books throughout the year using our accounting services, or at minimum, use our Simplified Business Operations template to stay organized.

How do K-1s affect my personal tax return?

A K-1 is a tax document generated by partnerships and S corporations that reports each owner’s allocated share of income, deductions, and credits. This information flows through to your Form 1040 and is taxed at your personal rate. Simple K-1s from a rental holding company are straightforward. Complex K-1s from investment syndications with multi-state nexus, Section 199A calculations, and passive activity limitations? Those are a different animal entirely. WCG categorizes K-1 complexity into tiers — Low Activity, Moderate, and Complex — with fees scaled accordingly. Learn more about our K-1 handling →

When are business tax returns due?

Partnerships (Form 1065) and S corporations (Form 1120S) are due March 15. C corporations (Form 1120) are due April 15. Extensions push these to September 15 and October 15, respectively. At WCG, we have a t-shirt that reads “Hate extensions. Love our summers.” We file about 70% of returns by the original deadline and only extend per the client’s request or when data is missing — like a rogue K-1 that decides to show up fashionably late in June. Get started with your filing →

Can WCG handle multi-state filings?

Absolutely. Multi-state compliance is a core part of what we do. We handle state income apportionment calculations, nexus analysis, composite tax returns for non-resident owners, and individual nonresident state filings. Our approach is risk-based — we won’t file in a state just because you had a payroll dollar there if it doesn’t actually trigger a filing obligation. Apportionment calculations run $200–$250 per state, state tax returns $300–$500 per entity, and we use Thomson Reuters Checkpoint and Bloomberg Tax for research (then throw it into AI to keep those expensive tools honest).

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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?

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After almost 6 years with this CPA group, there is NO ONE else we would trust to do our taxes.

L. Matisek

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We've worked with multiple bookkeepers and accountants over the years and WCG has completely blown us away.

N. Sellden

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As a novice business entrepreneur they provided me with the tools to both structure and tax my business efficiently

Mayon Hight

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They've made my taxes a breeze and are worth every dime I pay them for the peace of mind their services provide.

Lynn Shannon

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The good folks at WCG have impressed me, as being highly competent, patient & friendly.

Fred LeBlanc

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They've made my complicated business life simple and I'd recommend them to anyone with a slightly complicated-to-overwhelmingly complicated tax strategy!

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For nearly nine years, I have had the privilege of working with WCG and their team of exceptionally knowledgeable and experienced CPAs.

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Amanda - WCG CPA - You guys have been invaluable in helping us get this business and tax planning setup properly and executed correctly.

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WCG is extremely knowledgable, timely and attune to the unique aspects of our businesses.

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WCG CPAs are professional and a pleasure to work with.

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They go beyond the call of duties to assist me not only with Tax return matters but with any questions on other personal and company tax matters.

Juan Mayorga

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I've always dreaded tax season, but WCG has made things so easy, even as we changed to an S corp. So happy we found them!

Paige de Kock

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It was great to find an accounting firm eager to take on new clients, answer initial questions in depth, and support our “keep it simple” philosophy.

Stuart B.

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Working with WCG was so easy, shout out to Sally Rhoades who handled my complicated tax situation this year wonderfully and was available for all my questions.

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I am so thankful to be a client of WCG CPAs & Advisors.

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It's a wonderful and rare treat to find a company like WCG these days with their high level of service, personal approach, and deep knowledge of accounting.

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Such a great firm. Great communicators, great attention to detail and overall great people.

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