Going Rate?

[Howard]

After being in the business for the past 17 years, I have just received my first S Corporation tax return. While I am feeling qualified to prepare it, I just wanted to get a few ideas on what the rest of you kind folk are charging these days for a 1120S; S Corporation? This particular client also comes with 4 CA BOE tax filings per year, and his own personal Long Form with K-1, as well.

Thanks for the input;

Howard

[jainen]

>>to get a few ideas on what the rest of you kind folk are charging<<

I'll give you some ideas. How much do you charge for a 1040? Obviously, it depends on how complicated it is, and how it fits into the rest of your practice.

You can charge the same fees as for comparable 1040 forms. Or the same as for partnerships. Or you can go double or some other formula. If it's simple and he is a good client, you can do it free or for a minimum fee as a matter of good customer service.

It's not fair to charge more just because it takes you longer while you are learning, but you might charge less because you don't have a competitive skill level for it. And you might charge less because it's not an important part of your client base, or else because you want to attract more of that sort of business. Or you might charge more to discourage that sort of business (or that particular client) if it's too much trouble.

You might charge more if you have extra pay-per or other software costs. You might charge less if this first one opens the door to a lot of lucrative referrals. You can ask him what other quotes he's gotten (or get them yourself) and adjust your invoice accordingly. Or you can pick a figure out of the air and see how he reacts to it.

[JohnH]

I like jainen's reply, especially the last sentence.

A good pricing pattern to follow is the one an optometrist taught to his new assistant.

After the exam, look the customer straight in the eyes and say, "Mr Jones, you need eyeglasses."

He will always ask how much they cost.

Keep your focus on his eyes and say "$100".

If he doesn't blink, say "For the Lenses"

If he still doesn't blink, say "Each"

If he still doesn't blink, say "And of course you'll need a spare set"

[TAXBILLY]

Good one JohnH!

taxbilly