Tax returns and tax planning for small businesses and their owners
Clearway Accounting prepares federal and state tax returns for S corporations, partnerships, C corporations, trusts, and individuals. The firm is based in Boston, Massachusetts, working with clients across Massachusetts and remotely with clients in any state. Business returns typically run $1,500 to $10,000 per year and individual returns $1,000 to $5,000 per year, quoted as a flat fee before work starts. Tax planning is a separate engagement.
Which tax returns do you prepare?
We prepare and e-file federal and state returns for these entities and their owners. Next-year safe harbor estimates are part of a standard individual and S corporation return, and extensions are filed when needed and never billed as extra work.
| Return | Forms | Who files it |
|---|---|---|
| S corporation | Form 1120-S, with Massachusetts Form 355S and the 63D-ELT elective tax where it applies | Corporations taxed under an S election, and their owners |
| Partnership or multi-member LLC | Form 1065, with a K-1 package for each partner | Businesses with two or more owners taxed as a partnership |
| C corporation | Form 1120 | Corporations taxed at the entity level |
| Trust | Form 1041 | Trusts |
| Individual | Form 1040, with or without Schedule C; nonresident Form 1040-NR; amended Form 1040-X | Business owners, and individuals with business or real estate income outside W-2 wages |
An S corporation return (Form 1120-S) reports the business's income and passes it through to the owners on Schedule K-1, and the owners report it on their individual returns.
S corporation tax returns for Massachusetts business owners
Massachusetts is the firm's home state, and every quote includes the federal return and the Massachusetts return. For an S corporation that means Form 1120-S, Massachusetts Form 355S, and the 63D-ELT elective tax when the owners elect it.
Reasonable compensation for S corporation owners, and whether an LLC should elect S corporation status, are reviewed in a tax planning engagement.
Can you file in more than one state?
Yes. We prepare multi-state business and individual returns, including apportionment for businesses that operate in more than one state and nonresident returns for owners who earn income outside their home state.
Each additional state is priced separately, and the price is in your quote before work starts.
How does a tax engagement run?
- November to December: Your engagement letter arrives for eSignature.
- January: Your organizer and request list arrive in the client portal. The organizer pulls forward last year's information, and most clients finish it in 10 to 30 minutes.
- By February 1: S corporation and partnership information is due to us, for returns due March 15.
- By March 1: Individual and C corporation information is due to us, for returns due April 15.
- Preparation: We prepare and review the full return, then send you one list of open items.
- Filing: You review the return package, eSign the e-file authorization, and we e-file.
If information arrives late, we may file an extension so the return is accurate when it is filed. An extension gives more time to file. Any tax owed is still due by the original deadline, so the extension package includes a payment calculation and vouchers.
What do you need from me?
- The completed organizer.
- The documents on your request list, uploaded through the client portal. Sensitive documents never go by email.
- Your prior-year returns, or your signed consent under Internal Revenue Code section 7216 so we can request them from your former preparer.
What do I receive?
- A return package in the portal: a transmittal letter, leadsheets, the return, and a two-year comparison on an individual return.
- The e-file authorization, sent for eSignature.
- Payment and estimate vouchers when they apply.
- K-1 packages for the partners on a partnership return.
What does a tax planning engagement cover?
Tax planning is its own engagement, priced separately from the return, as a project or a retainer. Most planning happens outside tax season. A planning engagement can cover:
- Tax projections for the year
- Entity structure analysis, including whether an S corporation election makes sense
- S corporation reasonable compensation and qualified business income (QBI) analysis
- Retirement plan strategy
- Entity formation
- Decisions with significant tax consequences, before they are made
When we spot a planning opportunity while preparing your return, we raise it with you.
I received an IRS or state notice. Can you help?
Yes. With a signed Form 2848 power of attorney, we can pull your IRS transcripts, speak with the IRS about your account, and receive notices on your behalf. We prepare notice responses, penalty abatement requests (first-time abatement and reasonable cause), and refund claims on Form 843, and we answer state Department of Revenue notices for our sales tax clients.
Form 2848 is signed by hand. Sign it, scan or photograph it, and upload it to the client portal.
Notice work and representation sit outside a return engagement unless your engagement letter lists them. They are billed at the hourly rate in your engagement letter, and we tell you before the work starts.
Behind on filing?
We file catch-up returns for missed prior years, several years at once when needed, and prepare corrected and amended returns. Catch-up work is quoted as a one-time fee, stated separately from any ongoing fee, and we take it on with a plan for ongoing service. Books that are behind are covered under bookkeeping catch-up and cleanup.
Who this is for
Small businesses and the owners behind them: S corporations, partnerships, multi-member LLCs, and C corporations, along with the owners' individual returns.
Individuals with business or real estate income outside W-2 wages, clients with several properties or entities, and real estate operators, developers, and investors.
Who this is not a fit for
We don't take on low-touch transactional tax preparation or reactive cleanup engagements without a path to ongoing service.
For due diligence on a business you are buying or selling, see Quality of Earnings.
How much does a tax return cost?
| Service | Typical fee | What moves the price |
|---|---|---|
| Business tax return (Form 1120-S, 1065, 1120, or a 1040 with Schedule C) | $1,500 to $10,000 per year | Number of entities, states, and K-1s |
| Individual tax return (Form 1040) | $1,000 to $5,000 per year | Number of states, schedules, K-1s, and investment accounts |
| Additional state return | Priced per additional state | Number of states |
| Tax planning | Quoted per engagement, as a project or a retainer | What the planning covers |
| IRS and state notices, representation | Billed at the hourly rate in your engagement letter | What the notice requires |
Quoted fees are flat, agreed in writing in the engagement letter before work starts, and change only by agreement. One-time and monthly fees are always stated separately.
Tax questions
How much does a business tax return cost?
Business returns (Form 1120-S, 1065, 1120, or a 1040 with Schedule C) typically run $1,500 to $10,000 per year, and individual returns $1,000 to $5,000 per year. Each additional state is priced separately. Every return is quoted as a flat fee, agreed in writing before work starts.
Is tax planning included with my return?
Tax planning is its own engagement, priced separately, as a project or a retainer, and it happens mostly outside tax season. When we spot a planning opportunity while preparing your return, we raise it with you.
What if my documents arrive after the target date?
We may file an extension so the return is accurate when it is filed. An extension gives more time to file. Any tax owed is still due by the original deadline, so the extension comes with a payment calculation and vouchers. Extensions are never billed as extra work.
Can you file returns for years I missed?
Yes. We file catch-up returns for prior years, including several years at once, and prepare amended returns. Catch-up work is quoted as a one-time fee.
Can you get my records from my former accountant?
Yes. With your signed consent under Internal Revenue Code section 7216, we request your prior returns and records from your former preparer.
Can I eSign the power of attorney?
No. Form 2848 is the one form we need signed by hand. Sign it, scan or photograph it, and upload it to the client portal.
Do you work with businesses that already have a bookkeeper?
Yes. We can prepare your returns and handle tax planning while your current bookkeeper keeps the books.
Ready to get ahead of the deadline?
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