How Much Does Tax Preparation by a CPA Cost? 2025 Pricing Breakdown

Did you know that hiring a CPA could save you more than they cost, if you hire the right one?

Yet for many startup founders and small business owners, tax season feels less like a growth milestone and more like a confusing maze of deadlines, forms, and fee structures. 

With CPA rates rising in 2025 and compliance rules getting trickier by the minute, it’s no wonder most business owners are asking: 

How much should I actually pay for tax preparation, and is it even worth it?

In this blog, we’ll break down the real cost of working with a CPA for tax preparation in 2025.

You’ll learn:

• Average CPA rates based on return type and complexity

• What factors influence pricing

• How CPAs compare to other filing options

• When hiring a CPA makes sense, and when it doesn’t

• A simpler, smarter alternative with doola Tax Filing

Without further ado, let’s doola it, do’ers!

How Much Does Tax Preparation by a CPA Cost in 2025?

CPA tax prep fees have steadily increased over the years, and 2025 is no exception. According to industry surveys and national averages, here’s what you can expect to pay this year:

How do CPAs Bill You?

Before you hire a CPA, it’s important to know how you’ll be charged, because it’s not always as straightforward as it seems.

Depending on your business needs, return complexity, and the CPA’s billing structure, two founders with similar incomes could walk away with wildly different invoices.

Here’s a closer look at the three most common CPA billing models in 2025, so you can prepare for what to expect and avoid any surprises when the invoice hits your inbox.

Flat Fee: Predictable Filings 

This is the most common pricing model for relatively simple, predictable tax filings.

• CPAs offer a fixed price for preparing your return based on the scope of work agreed upon upfront.

• Great for individual tax returns or straightforward small business filings with minimal complexity.

• Offers transparency and predictability, but make sure to confirm what’s included (and what’s not).

• Average flat fee in 2025: Basic 1040: $250–$500 | Single-member LLC: $500–$1,000 | S-Corp return: $1,200–$2,000+

Hourly Billing: For Complex Businesses

Some CPAs, especially those offering advisory services or working with more complex businesses, bill by the hour.

Be wary of CPAs who can’t provide ballpark figures before starting.

• Rates typically range from $150 to $450 per hour, depending on the CPA’s experience, the complexity of the work, and geographic location.

• Ideal for dynamic projects that require ongoing support, such as quarterly tax planning, IRS audit representation, or navigating multistate tax compliance.

There’s just one major downside with hourly billing. It’s easy to rack up a large bill if you’re unclear on how long things will take, so always ask for time estimates upfront.

Per-Form Pricing: Multi-Entity & Multi-State Businesses

Some CPAs charge based on the number and type of IRS forms required to complete your tax return.

• Each form, whether it’s a Schedule C, K-1, or Form 1120, carries a price tag. The more forms your return requires, the more it’ll cost.

• For example: Schedule C (freelancer income): $150–$400 | K-1 (partnerships/S-Corps): $250–$500 each | Form 1120/1120S (corporate returns): $800–$1,500+

This method gives you clarity on how complexity adds cost, but it can quickly get expensive for multi-entity or multi-state businesses.

With inflation, rising labor costs, and increased demand for expert guidance in 2025, even modest tax preparation jobs may now come with premium pricing. That’s why understanding these billing models isn’t just smart, it’s essential.

Want predictable pricing with no surprises? doola Tax Filing offers flat-rate, founder-friendly tax preparation backed by experts and built for your business stage.

Factors That Influence CPA Pricing for Tax Preparation 

Your final CPA invoice isn’t just about filling out a few tax forms; it’s a reflection of your business’s size, structure, and financial complexity. 

Let’s decode the major variables that affect how much you’ll pay for professional tax prep in 2025.

1. Business Complexity

One of the biggest drivers of CPA pricing is how complex your business operations are.

For example, a freelancer with a single 1099 form and minimal deductions may only need a basic Schedule C added to their return, a task that could take less than an hour and cost around $300–$500.

Compare that to a multi-state S-Corp selling physical goods, managing payroll, working with contractors, and holding inventory across several warehouses.

In this case, the CPA must prepare multiple forms, reconcile different revenue streams, and navigate multi-state compliance, all of which require more hours and expertise. The cost can quickly climb to $2,500 or more. 

The more moving parts in your business, the more time a CPA will need to ensure your return is accurate, and the higher the final price tag.

2. Entity Type

Your business structure determines the tax forms required and how much effort it takes to file them.

Typically, sole proprietors and single-member LLCs fall on the lower end of the pricing spectrum because they’re filed alongside your personal 1040, usually with a Schedule C and maybe a few extra forms.

🔖 Must Watch: IRS Form 1040 Explained: Don’t File Your Taxes Without Watching This!

In contrast, S-Corps and C-Corps come with additional documentation like Form 1120 or 1120S, K-1 statements for shareholders, and payroll tax filings. These require more preparation, reconciliation, and accuracy checks.

Bottom line: the more complex your entity, the higher your CPA’s workload (and the higher the price).

3. Revenue Bracket

A LLC earning $20,000/year with a few clients and a handful of expenses may pay as little as $600 for tax prep. But an identical LLC bringing in $500,000/year across dozens of clients and hundreds of transactions will likely fall in the $1,200–$2,000 range.

Even if two businesses share the same structure, revenue volume can impact pricing.

More income usually means more invoices, receipts, potential deductions, and financial complexity, requiring extra CPA hours to ensure compliance and capture all tax-saving opportunities.

CPAs don’t just look at income. They look at the volume of financial data they need to clean up, sort through, and file accurately.

4. Location

Where your CPA is based also matters. CPAs in urban centers like New York City, San Francisco, or Boston often charge significantly more than those in smaller cities or rural areas, due to higher living costs and demand.

• Urban CPA hourly rate (2025): $250 – $450/hr

• Rural CPA hourly rate (2025): $150 – $250/hr

That said, many business owners are now opting for virtual tax services or working with CPAs across state lines to get high-quality work at a more affordable rate.

⚡ doola Tip for Do’ers

Even if your business operates in a high-cost area, your CPA doesn’t have to. Remote, startup-focused tax platforms like doola let you tap into expert tax help, without the big-city price tag.

5. Services Included

Some CPAs provide basic filing only, while others include tax strategy, financial planning, and year-round support.

• Filing-only CPAs may quote a lower upfront price, say, $750 for a standard S-Corp return.

• But a CPA who also offers quarterly advisory meetings, tax optimization strategies, and real-time Q&A may charge $2,000+ annually, but could also help you save thousands in taxes.

When comparing quotes, make sure you understand what’s included. A higher-cost CPA may actually be more affordable if they help you reduce your tax liability.

6. Urgency

If you’re sending your tax documents on April 14th, don’t be surprised if you get hit with rush fees.

Most CPAs have limited bandwidth during peak season. Filing late or requesting expedited service often adds $100 to $500+ to your total bill, depending on complexity.

Some CPAs even stop accepting new clients after March 15, so planning ahead not only saves stress but also saves money.

⚡ doola Tip: Lower Your CPA Costs Without Compromising Quality

Want to work with a CPA but avoid premium pricing? Here are four proven strategies:

By understanding the levers that affect CPA pricing, you can approach tax season with clarity and make smarter choices that serve your business’s bottom line.

Looking for expert-backed tax filing without premium pricing? Check out doola Tax Filing, designed for founders who want accuracy and affordability.

CPA vs. Other Tax Filing Options: What Are You Paying For?

Tax filing today isn’t one-size-fits-all. From high-end CPAs to low-cost DIY software, business owners have more choices than ever.

But how do you decide which one is right for you?

The answer depends on your business’s complexity, growth stage, and the kind of support you need, not just during tax season, but throughout the year.

Here’s how CPAs stack up against other filing options in 2025:

When Do You Need a CPA?

There are moments when a CPA’s expertise is worth every penny, especially when your financial situation calls for deep strategy or serious compliance.

CPAs are your go-to option for:

• Handling IRS Audits: CPAs are licensed professionals who can represent you during an audit and help you respond accurately to IRS inquiries.

• Maximizing Tax Savings: They use advanced tax planning strategies that go beyond software suggestions, often saving high-income businesses thousands annually.

• Managing Complex Entities: Running a C-Corp, multi-state S-Corp, or international operation? A CPA can untangle the paperwork and ensure bulletproof compliance.

📌 Pro tip: If your tax strategy directly impacts investor confidence or funding rounds, a CPA may be a worthwhile investment.

When Do Tools Like doola Win?

For early-stage founders, freelancers, and digital entrepreneurs, working with automated platforms like doola offers a sweet spot of affordability and functionality. These tools win when you need:

• Speed: Skip the back-and-forth emails and slow turnaround times. doola lets you file quickly and efficiently, without sacrificing accuracy.

• Affordability: For many small business owners, paying $3,000+ for a tax return just isn’t feasible. doola provides access to expert-reviewed tax filing at founder-friendly rates.

• All-in-One Automation: From federal and state filings to bookkeeping and compliance, doola takes care of the paperwork so you can focus on scaling.

• Founder-Friendly Support: You still get expert access, but without the intimidating jargon, hourly rates, or surprise invoices.

✅ Best of both worlds: With doola, you don’t have to choose between tech convenience and expert reliability. You get both.

Not sure which route to take? If you’re a solopreneur or a startup still getting off the ground, doola can offer the simplicity of a tool with the reliability of an expert.

Sign up (for free!) to get started today!

Is Hiring a CPA Worth the Cost for Small Businesses?

When tax season rolls around, many small business owners struggle to decide: 

Do I really need a CPA, or is there a more cost-effective option?

Hiring a Certified Public Accountant can be a game-changer: offering strategic insights, peace of mind, and serious tax savings. But for some businesses, it can feel like using a sledgehammer to crack a walnut. 

Whether a CPA is worth the investment comes down to where you are in your business journey, your income level, and the complexity of your operations.

Let’s dissect two different scenarios.

When Is a CPA Worth It?

For some business owners, CPAs are more than tax preparers: they’re strategic advisors who protect your finances and unlock real savings.

You’ll likely benefit from working with a CPA if:

✔️ You’re facing an IRS audit: A CPA can legally represent you before the IRS, help you respond to notices, and ensure you don’t accidentally over-disclose or under-report.

✔️ You’ve crossed six figures in revenue: Once your income grows, so does your exposure to overpaying taxes. CPAs can structure deductions, retirement contributions, and entity choices to legally reduce your liability.

✔️ You operate in multiple states or countries: Multi-jurisdiction filing is complicated. CPAs help ensure compliance with local, state, and federal rules, and reduce your risk of penalties.

✔️ You want proactive advice, not just form filing: Good CPAs don’t wait until tax season. They help you make decisions year-round that affect profitability, cash flow, and tax efficiency.

🔖 For a deeper understanding: 9 Benefits of Hiring a CPA for Your Business

When is a CPA NOT Worth It?

That said, not every business needs a high-cost tax expert. In fact, many solopreneurs and early-stage founders can save time and money by going with a more efficient, streamlined option.

A CPA might not be the best fit if:

❌ Your business is brand new: You may not have complex deductions, high income, or compliance concerns that justify a CPA’s fees.

❌ You earn under $50K/year: For small income brackets, the tax savings a CPA could provide often don’t outweigh their costs.

❌ Your income and expenses are simple: If you’re a service-based freelancer with a few clients and clear digital records, an automated tool might handle your return just fine.

❌ You’re paying $2,000+ for a return that could be done for $500: If your business hasn’t outgrown your needs, you could be overspending on professional services you don’t actually need.

ROI Mindset: When the Math Works in Your Favor

Consider “hiring a CPA” as a business investment.

If you pay them $1,500 and they help you save $3,000 through smart deductions, entity restructuring, or tax credits, you’ve technically doubled your return. 

🚩 But there’s a caveat.

If your CPA does little more than run your numbers through tax software, charges $250/hour with no clear deliverables, and fails to guide you through better financial decisions, then you’re not making an investment. 

You’re just overpaying for administrative work.

📌 Ask Yourself These Key Questions

• Are you getting strategic insights, or just a PDF in your inbox?

• Does your CPA help you steer the business, or simply check compliance boxes?

Whether you go with a CPA or choose a smarter option like doola, your tax preparation solution should save you time, reduce stress, and most importantly, deliver real value to your business.

🧾 Checklist: 5 Signs You’re Overpaying Your CPA

Still not sure if your CPA is the right fit? Use this checklist to evaluate your current setup.

1. You only hear from them at tax time

There’s no year-round support, no advisory help, and no proactive planning.

2. You don’t get quarterly guidance

They never remind you about estimated taxes, potential deductions, or cash-saving opportunities during the year.

3. They charge by the hour, but never provide quotes upfront

You’re left guessing what the bill will look like until it’s too late to push back.

4. You don’t understand what you’re being billed for

Invoices are vague, and you can’t tell if you’re paying for strategy or simple form-filling.

5. You found a better solution, like doola

If you’re paying premium CPA prices for basic services that doola covers at a fraction of the cost, it’s time to make the switch.

If you check 2 or more of these… it might be time to switch.

🔖 Related Read: CPA Services for Your Small Business: What They Offer and How to Choose the Right One

If you think it’s time to upgrade your tax preparation setup, don’t worry. The next step is simple: make sure you’re choosing the right CPA (or tool) for your needs.

Let’s walk through exactly how to do that.

How to Choose the Right CPA for Tax Preparation

If you’ve already decided to go with a CPA, that’s great! But don’t just pick the first one in your search results. 

Your CPA will be handling sensitive financials, influencing your tax liability, and ideally, offering strategic guidance. That’s why it’s essential to choose someone who’s not only qualified but also a good fit for your business.

Smart Questions to Ask Before Hiring a CPA

Start with our curated list of questions. This will not only streamline your decision-making process but also ensure you choose a CPA who truly aligns with your business needs.

1. Do you have experience with my business type or industry?

A CPA who understands your niche, whether it’s e-commerce, consulting, SaaS, or solopreneurship, will know which deductions to pursue, what pitfalls to avoid, and how to tailor your tax strategy.

2. Do you charge hourly or offer flat fees?

Pricing transparency matters. Flat fees give you clarity and predictability, while hourly rates can quickly add up. Always ask for estimates and what’s included in the cost.

3. What tax software do you use?

This gives insight into their efficiency and whether your records can easily integrate.

Bonus if they use cloud-based tools that allow real-time collaboration and document sharing.

4. How often will we communicate throughout the year?

Some CPAs only pop up during tax season. Others stay in touch, offering quarterly insights and helping you make smarter financial moves year-round. Choose the latter if you want real ROI.

5. Do you offer year-round planning or just filing?

A CPA who offers ongoing tax planning will help you reduce your liability proactively, not just report what already happened. That’s the difference between compliance and strategy.

These questions are a great start, but are they enough to make the final call? Maybe not. Let’s dive into what else you should be watching for.

Red Flags To Watch Out For 

Before finalizing your CPA hire, don’t overlook these common blindspots. Here’s a quick checklist to keep you covered:

1. Vague or hidden pricing

If the CPA can’t clearly explain how they bill, or their invoices constantly contain surprise charges, it’s a sign of poor transparency.

2. Poor communication or lack of follow-up

If they’re hard to reach during onboarding, imagine what tax season will look like. Responsiveness is key in any financial partnership.

3. No experience with small businesses or startups

Your CPA should understand the unique needs of early-stage ventures, not just enterprise-level corporations. Otherwise, they may miss opportunities that matter to your bottom line.

4. No audit support or IRS representation

If things ever go south, you want a CPA who can stand by you in front of the IRS. If they can’t, or won’t, that’s a dealbreaker.

📌 Tired of vetting 10 CPAs and still feeling unsure?

doola’s tax experts are trained to work with small businesses, founders, and freelancers. You get all the support, without all the guesswork. 

Explore doola Tax Filing today, your stress-free alternative to the CPA search struggle.

Not Ready for a CPA? Try doola Tax Filing Services

If hiring a high-cost CPA feels like too much too soon, you’re in good company.

That’s exactly why doola created a smarter, simpler tax filing solution: built for founders, solopreneurs, and small businesses who want expert support without the premium price label.

With doola Tax Filing, you get:

• Federal + state tax filing

• One-click automation to save you hours

• Real expert support (no bots, no guesswork)

• Clear, upfront pricing with zero surprises

Whether you’re juggling clients as a freelancer, scaling your e-commerce brand, or launching your startup, doola helps you file with confidence, stay compliant, and unlock real savings, without the CPA price tag.

Ready to take the stress out of tax season? Sign up to get started today!