LLC bookkeeping cost and the IRS's 2025 filing averages

The IRS's cost figures are averages: 12 hours and $290 per return for all 2025 Form 1040 or 1040-SR filers, not for an LLC specifically (IRS: Instructions for Form 1040 and 1040-SR). The 2025 average for corporations filing Form 1120 and associated forms is about 90 hours and $8,600, with no separate figure for a foreign-owned LLC (IRS: Instructions for Form 1120). Which return a single-member LLC files depends on its owner.

What the IRS estimates filers spend

The IRS estimates an average time and an average out-of-pocket cost in the instructions for Form 1040 (the individual income tax return) and Form 1120 (the US corporation income tax return). It calls this time and money the “burden”.

Return	Who the average covers	Average time	Average cost	Source
Form 1040 or 1040-SR (2025)	All filers, with all associated forms and schedules; not an LLC or Schedule C alone	12 hours	$290 per return	IRS: Instructions for Form 1040 and 1040-SR
Form 1120 (2025)	Corporations filing Form 1120 and associated forms; no separate figure for a foreign-owned LLC	About 90 hours	About $8,600	IRS: Instructions for Form 1120

For Form 1040, the out-of-pocket estimate covers preparing and submitting a return, not an ongoing bookkeeping service (IRS: Instructions for Form 1040 and 1040-SR). The IRS's examples are preparation and submission fees, postage and photocopying, and preparation software. The Form 1120 instructions give the same examples, and their estimate leaves out post-filing activities, the work after a return is filed (IRS: Instructions for Form 1120).

The Form 1120 instructions call their figures national averages that don't necessarily reflect a “typical” case, and they say most taxpayers have a lower than average burden (IRS: Instructions for Form 1120). The same instructions add that burden varies considerably by taxpayer type. The Form 1040 average spans all preparation methods and taxpayer activities. So it is not an estimate for an LLC, or for Schedule C (the business profit or loss schedule) alone (IRS: Instructions for Form 1040 and 1040-SR).

What you pay for, by LLC type

The federal filing you pay for depends on whether the single-member LLC is foreign-owned or owned by an individual.

	Foreign-owned US disregarded LLC	Disregarded single-member LLC with an individual owner
Federal filing	When Form 5472 is required: a pro forma Form 1120 with Form 5472 attached, by the Form 1120 due date (including extensions)	Generally Schedule C of Form 1040 or 1040-SR for a trade or business (Schedules E and F are listed for other activities)
IRS time and cost estimate	No separate figure; the Form 1120 average is for corporations	Included in the Form 1040 estimate; no figure for Schedule C alone
Source	IRS: Instructions for Form 5472; IRS: Instructions for Form 1120	IRS: Single member limited liability companies; IRS: Instructions for Schedule C (Form 1040)

Foreign-owned LLC. A foreign-owned US disregarded entity that must file Form 5472 files a pro forma Form 1120 with Form 5472 attached. Both are due by the Form 1120 due date, including extensions (IRS: Instructions for Form 5472). On this pro forma Form 1120, the instructions require only the LLC's name and address and items B and E on the first page. The 2025 average of about 90 hours and $8,600 is for corporations filing Form 1120 and associated forms. The Form 1120 instructions give no separate figure for a foreign-owned LLC's pro forma return (IRS: Instructions for Form 1120). See also the Form 5472 guide for foreign owners. For hiring help, see whether a foreign-owned LLC needs an accountant.

LLC with an individual owner. If the owner is an individual, a disregarded single-member LLC's trade or business generally goes on Schedule C, Profit or Loss from Business, of Form 1040 or 1040-SR (IRS: Single member limited liability companies). The same IRS page lists Schedules E and F for other activities. The Schedule C instructions say its burden is part of the estimate for the filer's individual income tax return (IRS: Instructions for Schedule C (Form 1040)). So the 2025 Form 1040 average of 12 hours and $290 per return covers Schedule C filers too. It is not a figure for Schedule C alone (IRS: Instructions for Form 1040 and 1040-SR).

For the records behind either filing, see the Amazon seller bookkeeping records guide. Filing dates are on the federal tax calendar. Related reading: LLC annual report vs tax return.

Who can represent you before the IRS

Enrolled agents, certified public accountants (CPAs) and attorneys have unlimited representation rights before the IRS (IRS: Understanding tax return preparer credentials). They may represent (act for) clients on any matter, including audits, payment or collection issues and appeals.

Annual Filing Season Program participants have limited rights, and those rights do not cover appeals or collection issues. They may represent only clients whose returns they prepared and signed. Even then, they may do so only before revenue agents, customer service representatives and similar IRS employees (IRS: Understanding tax return preparer credentials).

To check a preparer's credentials, use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. It includes certain credentialed preparers and Annual Filing Season Program participants, but not every holder of a PTIN (preparer tax identification number) (IRS: Choosing a tax professional).

Fee and refund red flags the IRS names

The IRS's 2026 guidance gives three checks on fees, refunds and signatures:

1. Ask how the fee is set. In Tax Tip 2026-11 (February 10, 2026), the IRS tells taxpayers to avoid preparers who base their fees on a percentage of the refund (IRS: Quick tips for picking a tax pro).
2. Check where the refund goes. In fact sheet FS-2026-06 (March 2026), the IRS says a refund should generally be paid directly to you, not into the preparer's bank account, unless there is a legitimate reason such as an agreed, fully explained arrangement to pay for return preparation (IRS fact sheet FS-2026-06).
3. Look for a signature and PTIN. Paid preparers must sign any tax return they prepare and include their PTIN (IRS: Quick tips for picking a tax pro).

Quick answers

How much does a bookkeeper cost for a small LLC?

The IRS figures quoted here are not bookkeeping prices. For 2025, the IRS estimates 12 hours and $290 per return across all Form 1040 or 1040-SR filers, not for an LLC specifically (IRS: Instructions for Form 1040 and 1040-SR). That out-of-pocket figure covers preparing and submitting a return, such as preparation fees and software, not an ongoing bookkeeping service.

Does the $8,600 Form 1120 average apply to a foreign-owned LLC's pro forma return?

The Form 1120 instructions give no separate figure for that case. Their 2025 estimate of about 90 hours and $8,600 is the average for corporations filing Form 1120 and associated forms (IRS: Instructions for Form 1120). A foreign-owned US disregarded entity required to file Form 5472 attaches it to a pro forma Form 1120. That return needs only the LLC's name and address and items B and E on the first page (IRS: Instructions for Form 5472).

How do I check a tax preparer's credentials?

Use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. It includes certain credentialed preparers and Annual Filing Season Program participants, but it does not list every PTIN holder (IRS: Choosing a tax professional). A paid preparer must also sign any tax return they prepare and include their PTIN (IRS: Quick tips for picking a tax pro).

Where Taxller fits

Upload your Amazon settlement reports and Taxller turns them into double-entry books: sales, fees, refunds and payouts, split per payout. Our free tax calendar lists the federal deadlines for sellers and the state deadlines for 19 states, with weekend shifts applied and sources cited. Taxller never files or pays anything on your behalf: you or your accountant review and file.

Sources

• Instructions for Form 1040 and 1040-SR
• Instructions for Form 1120
• Instructions for Form 5472
• Single member limited liability companies
• Understanding tax return preparer credentials and qualifications
• Choosing a tax professional
• Quick tips for picking a tax pro