LLC entity tax return costs?

Question

Hello, what is the typical cost range for CPA tax returns on an LLC entity on a syndication with 10 investors? Multifamily deal. Standard 70/30 structure, nothing crazy or weird. Thanks

Eamonn McElroy · Answer

I would say the range provided by Brian is about accurate.  $3k - $6k for someone who knows what they're doing is fair, and the final figure depends on the individual return's complexity and the CPA's location.

A very simple 10 partner partnership, no special allocations, no UDFI/UBTI calculation, no 704(c) or reverse/forward 704(b) layers, no debt-financed distribution, no 743(b) or 734(b) calculation, no more than one state return...might be on the lower end if the books are immaculate.

However, it's not a commodity service.  You want someone who can advise you regarding various elections and the ramifications of partner and partnership transactions.

The most expensive 1065 returns I've ever seen were the ones that had to be corrected after letting a low cost preparer handle them for a few years.  Food for thought.

Chris Levarek · Answer

@Justin Brennan Can depend. If your books are in order, all expenses and income come from a single bank account, your CPA, etc. Typically you can estimate $1000+.

Brian Boyd · Answer

Justin,

That is a question with no answer. As you know, "it all depends." However,  I would say that a range, based on my experience, would be from 2500- 6500. As you know, the LLC itself does not file a return. Depending on its tax treatment, it may file a 1065 if it is a partnership or it may simply file a K-10 (information return) and provide its members with a K-1. Given that you are in California, I would probably look on the high end of the spectrum. But, please do not skimp on the tax return preparation, it is far too important.

Good luck out there.