Corporation Return Charges

[Jiggers]

Hourly Fees

I do not tell my clients what my hourly fee is. The calculation that I showed you is for my use only in determining a fee.

If a client asks for an estimate, I look up at the ceiling, the same place they get their mileage, and quote a fee based on previous experience with doing that type of return.

If they ask for an hourly rate, I tell them that I bill by the project and that my fee for doing this return is such and such.

For 1040's & 1040A's, I use a fee schedule.

[Black Bart]

Texas Jiggers

Just kidding and no offense meant. Certainly there's nothing unreasonable about your rate and we all have to determine for ourselves what fees are appropriate for our practice, location, and circumstances. If my clients had $100K W-2s, I'd be doing the same.

Actually, the "by the project" method is what I use. I don't keep track of the specific number of hours I spend on a return, but rather just rely on my feeling for how much "time and trouble" it was to do the job. It seems to work out okay; satisfying both me and the client. Too, if he/she is a pain in the neck, I sometimes add another $50/100 to make myself feel better about it and then they can come back next year or not as they please -- either way's okay with me.

[DTS]

Thanks, BB

Bart,

Thank you for the huge laugh my wife and I had after reading your post!! That little "scenario" was just what we needed to get the day started.

We appreciated the time and effort it took, as always.

Dennis

[Black Bart]

Thanx,

Jack / Bird / Dennis.

[S T]

Many Thanks

Thanks to all that posted here. Dennis and I have had many discussions about this subject, as we both are now encountering more 1120S, 1120 and even 1065 forms.

All very enlightening!, Bart your sense of humor and story telling always adds a fresh perspective!

As also mentionned by Bees, and Jiggers, my only reason for inquiring about the hourly rate was for my own use in judging how to charge, not for actually presenting a bill to the taxpayer for the hourly rate. I really like calculating off of forms and schedules better, but sometimes have to revert to calculating an hourly amount to arrive at a fee, such as a corporate or partnership return. However, I do charge an hourly fee for accounting work and computer changes.

Sandy

[dsi]

My minimum fee for corps and partnerships in $700, regardless of how simple it is. I shared an s-corp return I had prepared with a CPA in Costa Mesa, CA and was very enlightened by what his fees would have bee. Mine was $3000. His for the same return was $10,000.

So, my fees for preparing the 2005 return went up a bit. I billed my client $6500 and they were still delighted.

[Black Bart]

Moving & Improving

Costa Mesa, CA -- I billed my client $6500 and they were still delighted.

Well, if I do move, at least now I know where I'm going.

[DTS]

Costa Mesa

Bart,

I use to live and work in Costa Mesa. I can assure you that the majority of tax work in CM that I have seen, is not in the $6,500-10,000 range!

However, a collegue did relate a story about her Father who was a CPA that had a few clients with tons of investments and he charged between $15,000-18,000. They also thought that was a bargin!

Would I love one or two of those! Of course, the aspirin and tranqualizers would be close to the paper work!

Dennis

[sea-tax]

Dennis, I once saw a return for a new client who paid 3500 for a 1040 Sch A . At first I was like you got to be kidding , then I said good for that guy . So congrats to you . Please if you don't mind how do you do it? I mean what do you say ? Do the clients just not ask?

Really I congratulate you for being able to charge what you can. When I charge 1000 it is like pulling teeth.

[Gretel]

Well, if I do move, at least now I know where I'm going.

Bart, believe me, after driving in CA in Costa Mesa area: You DON'T want to live there. You are to good of a southern boy as well as I am to good of a Montana girl now. Maybe you want to move to Montana, not for the pay just for the company. I am marveled at what can be charged.

[DTS]

Not me!

Sea-tax,

I think you misread my post. It's not ME who is charging these prices. I wish!!! Like you, I say, "good for you". Some of my clientele will understand a high price for a return after I explain why the cost is higher than they are use to. However, those prices are WAY out of my league.

In answer to your question of how I do it: I do price ranging with about $200-250 cushion for me. Example would be $400-650. For small returns that will not be pricey, same thing. That way, there are no surprises down the road. If I see I have under-bid, I tell them some time on the phone when I request info that their return will cost way more. That way, they can bail before I have spent too much time on the return.

Dennis

.

[S T]

Kudos

Hi DSI,

Kudos to you for billing out at $6500. What type of Corporate return was it that would generate those type of fees and what type of work and hours go into that type of return? All becomes relevant.

DTS is in Costa Mesa and I am in Riverside, so that would be very interesting for us to explore. Your $700 minimum fee seems reasonable, I think DTS and I are on the same page on that, it is the extra time that we are having a hard time in establishing, so we were thinking of overall hours for the Corporate Project, realizing that some Corporate returns are more difficult than others. Example: S Corp that is a Service company with only a few employees, vs S Corp that is Manufacturing subject to Uniform Cap with double employee base. Obviously more hours on the Manufacturing Company.

Would be interested to learn more!

Sandy

[S T]

Calif and Fees

Well Bart, I have to agree with Gabriele as she just paid a visit here and I am sure she received quite a "culture" shock. I live here and it is a "culture" shock everyday.

I don't think you would want to move here even if you could charge $6500 for a Corporate Return. But maybe if you had several of those Corporate Fees it might work.

Example would be if you moved to Costa Mesa or Newport your "RENT" mind you not owning your home, for a one bedroom - one bath apartment and parking on the street (no garage) probably on the second story would begin at about $1800 per month. Now you could move out aways to another local city and have about 20 -30 minutes commute, and your rent might decrease if your were lucky, but in all honesty, would still probably be the same, altho you might get a 2 bedroom and maybe a carport, but still on the 2nd story. Then if you moved another few miles out for a 40-60 minute commute you might get a very small house with a 2 car garage rents at about $1800-$2250.

So you would save on rent and spend several hours a day in your vehicle, that is of course unless you have a Home Office, and then would "paint" a slightly different picture. And then of course I am not even going to entertain the idea of trying to justify our real estate values.

Sandy