Smart strategies to handle your startup's tax obligations without breaking the bank. Learn when to DIY and when professional help pays for itself.
10 minute read • Updated January 2024
Most founders underestimate tax compliance costs. Plan for $2,000-$5,000 annually for basic corporate tax filing, or budget wisely to handle some aspects yourself while getting professional help where it matters most.
| Business Stage | DIY Cost | Professional Cost | What's Included |
|---|---|---|---|
| Pre-Revenue | $200-500 | $800-1,500 | Basic returns, simple structure |
| Early Revenue | $500-1,000 | $1,500-3,000 | Revenue reporting, basic deductions |
| Growing ($500K+ revenue) | $1,000+ | $3,000-6,000 | Complex deductions, R&D credits, multi-state |
Best for: Simple businesses with under $100K revenue, single founder, no employees, minimal complexity.
Best for: Growing businesses, multiple founders, employees, complex deductions, fundraising plans.
Potential savings: 40-60% vs full-service, while still getting expert help where it matters most.
Handle basic filing yourself, but get an annual review from a professional to catch missed opportunities.
As complexity grows, professional service typically pays for itself through tax savings.
TurboTax Business: $200-400/year
Good for simple corporations with basic transactions
Drake Tax: $500-800/year
More features, handles complexity better
Lacerte/ProSeries: $1,000+/year
Full-featured, used by CPAs
Good record-keeping saves hours of work and thousands in fees later.
Home office, business meals, equipment, software subscriptions - track it all!
Time equipment purchases for maximum tax benefit (Section 179, bonus depreciation).
Software development often qualifies - can save $15K-$100K+ annually.
Reasonable salary for S-Corp owners can save thousands in SE taxes.
Extension gives you time to organize and can reduce rush fees from professionals.
Why: The complexity and potential tax savings/audit risks far exceed the cost of professional help.
Real example: A client saved $8,500 in taxes through R&D credits they didn't know existed. The $2,000 preparation fee paid for itself 4x over.
Get a free consultation to review your tax situation and see potential savings opportunities.