ROBS CPA and Tax-Preparation Costs

A ROBS transaction creates two continuing systems. The C corporation operates the business and files corporate tax returns. The qualified retirement plan owns employer stock and has plan-administration duties. The same owner may coordinate both, but the work is not the same.

The corporate lane generally includes bookkeeping, bank reconciliation, year-end close, financial statements, Form 1120, payroll records, employment-tax returns and deposits, state and local filings, and industry taxes such as sales or property tax when the facts require them.^{[1][2][3][4][5][8]} The plan lane generally includes plan records, participant data, Form 5500, valuation support, plan notices, amendments, and distribution reporting where applicable.^{[7][9][10][11][12]}

Sources were reopened on July 31, 2026. Provider prices in this guide are current first-party ROBS setup or plan-administration anchors only. They are not CPA market prices and should not be used as a claim that a CPA charges a fixed amount.

These are the material claims the page builds on:

Use titles to assign work, not to infer that one person is responsible for everything. A CPA may prepare the corporate return, advise on accounting method, supervise year-end close, respond to income-tax notices, and coordinate with the payroll provider. An enrolled agent may represent taxpayers before the IRS and prepare returns. A bookkeeper maintains the monthly books but should not be assumed to provide tax planning or representation. A payroll provider runs payroll, prepares payroll-tax workflows, and initiates deposits according to the service agreement. A TPA or ROBS provider administers the qualified plan. An ERISA attorney handles plan-law questions, prohibited-transaction issues, fiduciary disputes, and plan-document questions. A valuation professional handles transaction-level fair-market-value questions when routine provider valuation support is not enough.

The handoff matters. Corporate books feed Form 1120, payroll reports, lender statements, and sometimes plan valuation data. Payroll records feed Forms 941, 940, W-2/W-3, state unemployment and withholding records, owner compensation support, and corporate wage deductions. Plan census, stock value, participant balances, distributions, and withholding records feed the plan-administration lane.

The comparison below is shown as stacked cards on small screens so quote comparison does not require horizontal scroll.

Normalize quotes into recurring, event, hourly, and pass-through columns. Recurring work is the annual close, books, payroll coordination, and tax returns. Event work is acquisition, startup tax elections, asset allocation, financing, state registration, amendment, notice, cleanup, sale, redemption, shutdown, or plan termination work. Hourly work should identify the role and rate. Pass-throughs are taxes, state fees, software subscriptions, payroll deposits, government charges, registered-agent bills, and valuation or legal invoices paid to another provider.

Ask for exclusions in writing. A low fixed fee can be reasonable when books are clean and payroll is simple. It can be misleading if it excludes quarterly payroll returns, state returns, sales-tax filings, Form 7004, Form 1120 schedules, basis in assets, depreciation, opening balance sheet, lender financial statements, notices, and amended returns.

Each example is hypothetical except for the first-party ROBS administration anchors stated in the inputs. Recompute the math before relying on a proposal.

Give the CPA the corporation formation documents, EIN letter, prior returns, accounting file, bank and credit-card statements, payroll reports, W-2/W-3 records, Forms 941 and 940, state payroll filings, sales-tax permits and returns if applicable, loan documents, purchase agreements, asset allocation schedules, depreciation schedules, shareholder records, plan-provider annual data requests, valuation reports, Form 5500 records, and agency notices.

Form 7004 can request a six-month extension for covered business returns, including Form 1120, but it is not a substitute for payroll deposits, employment-tax returns, state obligations, plan filings, or paying tax that is due.^[6] The engagement should state who files extensions, who estimates payment, who receives IRS or state notices, and whether the professional may represent the corporation after a notice arrives.

Common cost drivers include late or incomplete books, commingled expenses, unsupported owner compensation, inventory, multi-state nexus, sales tax, property tax, franchise or gross-receipts tax, amended payroll returns, acquisition accounting, asset allocation, depreciation, amendments, notices, financing covenants, uncertain depreciation, missing plan handoffs, and exit events.

The risk control is not hiring the most expensive professional. It is matching scope to facts, keeping corporate and plan records separate, reconciling payroll to books, documenting owner compensation, sending clean data before deadlines, and asking for referrals when the issue moves into ERISA, valuation, legal, lender, or state/local specialty territory.

Use these questions before signing an engagement letter:

• Name the engagement client: corporation, plan, owner, buyer group, or another party.
• Identify the payer and whether plan assets are being used for any plan expense.
• Separate bookkeeping, Form 1120, payroll returns, state returns, plan administration, valuation, and legal work.
• State whether monthly close, year-end close, financial statements, and tax return preparation are included.
• List all federal forms assumed: Form 1120, Forms 941, Form 940, W-2/W-3, Form 7004, Form 5500, Form 1099-R, and Form 945 where relevant.
• State payroll-provider duties, deposit responsibility, due-date monitoring, and who resolves notices.
• Identify state/local income, franchise, sales, payroll, unemployment, property, gross receipts, or local business tax work that is included or excluded.
• Define acquisition and startup scope: accounting method, tax year, depreciation, Section 195/organizational costs, asset allocation, and opening balance sheet.
• Define deadlines, extensions, data cutoff dates, late-data fees, amended-return fees, and representation authority.
• Ask whether the preparer is a CPA, EA, attorney, bookkeeper, payroll provider, or TPA and where each role stops.
• Require first-year, recurring-year, event, hourly, notice-response, and pass-through charges to be shown separately.
• Ask what professional boundary triggers referral to an ERISA attorney, valuation professional, lender, or state/local tax specialist.

Start by collecting the current provider agreement, plan-administration quote, corporate accounting quote, payroll provider quote, and any acquisition or lender requirements. Mark each line as corporate, plan, payroll, legal, valuation, state/local, pass-through, or event work. Then ask each provider to confirm the boundary in writing.

For adjacent decisions, compare ROBS annual administration costs, Form 5500 costs, ROBS legal fees, Form 1120 filing requirements, and exit planning.

These answers address recurring quote questions about corporate tax preparation, payroll filings and deposits, plan-administration boundaries, Form 7004 extensions, and which professional role should own each handoff.

Primary IRS and current first-party provider sources were checked on July 31, 2026. Open provider pages again before relying on prices or scope.

1. 1. IRS Form 1120

   IRS states domestic corporations use Form 1120 to report income, gains, losses, deductions, credits, and corporate income tax liability. Page last reviewed or updated July 21, 2026.

2. 2. IRS Instructions for Form 1120

   Current official instructions for the U.S. Corporation Income Tax Return, including return mechanics, schedules, accounting-method and tax-year considerations, and corporate reporting details.

3. 3. IRS Publication 15

   2026 Employer's Tax Guide covering EINs, employees, wages, withholding, deposits, payroll records, Forms 941/940/945, third-party payer arrangements, and correction mechanics.

4. 4. IRS Form 941

   IRS states employers use Form 941 to report federal income tax, Social Security, and Medicare tax withheld from paychecks and the employer share of Social Security and Medicare tax. Page last reviewed or updated July 22, 2026.

5. 5. IRS Form 940

   IRS states employers use Form 940 to report annual FUTA tax; only employers pay FUTA and it is not collected or deducted from employee wages. Page last reviewed or updated July 22, 2026.

6. 6. IRS Form 7004

   IRS states Form 7004 requests an automatic six-month extension of time to file certain business income tax, information, and other returns. Page last reviewed or updated March 30, 2026.

7. 7. IRS ROBS compliance project

   IRS describes the ROBS C corporation stock-purchase structure, Form 1120 and Form 5500 nonfiling findings, recordkeeping questions, valuation issues, and provider-promoter concerns. Page last reviewed or updated November 16, 2025.

8. 8. IRS business taxes

   IRS overview of business tax categories, including income tax, estimated tax, self-employment tax, employment taxes, and excise taxes.

9. 9. Guidant pricing

   Guidant-published 401(k) Business Financing starting at $5,495 and 401(k) Plan Administration starting at $149 per month, with business valuation listed in administration scope. Checked July 31, 2026.

10. 10. Guidant plan administration

    Guidant states plan administration starts at $149 per month and includes Form 5500 preparation, compliance review/testing, Summary Annual Report, Statement of Value, and owner filing responsibilities. Checked July 31, 2026.

11. 11. FranFund pricing

    FranFund publishes a $4,995 setup fee and $165 monthly TPA fee with plan-administration scope including annual Form 5500, Form 1099-R, Form 945, annual fair market value support, audit assistance, amendments, notices, and transaction documentation. Checked July 31, 2026.

12. 12. My Solo 401k pricing

    My Solo 401k publishes a $3,000 setup fee including first 12 months of compliance support and $899 annually afterward for the first 10 participants, including Form 5500 preparation and routine annual corporation valuation. Checked July 31, 2026.