LLC Bookkeeping Cost by Tax Election
Your LLC's bookkeeping cost depends primarily on how it is taxed. The same legal entity (an LLC) can be taxed four different ways — each with different bookkeeping requirements:
| LLC Tax Election | Tax Form Filed | Bookkeeping Complexity | Fair Price Range | Sharma Jyoti and Co |
|---|---|---|---|---|
| Single-member, disregarded entity | Schedule C (attached to Form 1040) | Low — same as sole proprietor | $300–$600/mo | $200–$300/mo |
| Multi-member partnership | Form 1065 + Schedule K-1 per member | Medium — capital accounts required | $500–$900/mo | $300–$500/mo |
| S-corp elected LLC | Form 1120-S + Schedule K-1 + W-2 | High — payroll, salary/distribution tracking | $600–$1,200/mo | $400–$600/mo |
| C-corp elected LLC (rare) | Form 1120 | High — retained earnings, dividends | $800–$2,000/mo | $500–$900/mo |
What Bookkeeping Your LLC Actually Needs Every Month
Every LLC (minimum scope):
- Bank and credit card reconciliation for all business accounts
- Expense categorization to correct tax lines (Schedule C or Form 1065)
- Revenue recording (invoices, payment processors, direct deposits)
- 1099-NEC tracking — flag every contractor paid $600+ during the year
- Monthly P&L and balance sheet
- Year-end CPA workpaper package
Multi-member LLC, add:
- Capital account ledger — track each member's contributions, distributions, and share of income/loss
- K-1 workpapers for each member
S-corp elected LLC, add:
- Owner payroll reconciliation (W-2 salary, payroll taxes)
- Salary-versus-distribution ledger (critical for IRS audit defense)
- Shareholder basis tracking
Items you should NOT pay extra for: Year-end CPA workpapers, 1099 tracking, and monthly financial statements are not add-ons — they are core scope. If your current bookkeeper charges extra for these, that is a pricing red flag. At Sharma Jyoti and Co, all three are included in the standard monthly fee.
LLC Bookkeeping Cost by Transaction Volume
| Monthly Transactions | US Market Range | Sharma Jyoti and Co |
|---|---|---|
| Under 75 | $300–$500/mo | $200–$250/mo |
| 75–150 | $450–$750/mo | $250–$350/mo |
| 150–300 | $700–$1,100/mo | $350–$550/mo |
| 300–500 | $1,000–$1,800/mo | $500–$800/mo |
Frequently Asked Questions
Single-member LLC: $200–$400/month. Multi-member LLC with Form 1065: $350–$600/month. S-corp elected LLC: $400–$800/month. At Sharma Jyoti and Co pricing starts at $200/month for single-member LLCs — 40–60% below the US market average with year-end workpapers included.
Every LLC needs: bank/card reconciliation, expense coding, 1099 tracking, monthly P&L and balance sheet, and year-end CPA workpapers. Multi-member LLCs additionally need capital account tracking. S-corps add owner payroll and salary/distribution ledger. Sharma Jyoti and Co handles all of this within the standard monthly fee.
Most LLCs need both: a bookkeeper for monthly work, a CPA for year-end tax filing. The cost-optimal setup is Sharma Jyoti and Co ($200–$600/month for bookkeeping) plus your US CPA ($1,500–$3,000/year for tax return only). This combination typically saves $5,000–$12,000/year versus a US CPA handling everything.