I would appreciate advice on creating a bid for a multi-year, multi-state tax corporate return project. The potential (small) client has not filed returns for the past 3 years, has been operating at a loss but expects to be profitable.
My first proposal would be to get paid up front.
If the returns are small, you can try $500-700 for the first year, and then go up from there. It depends on the complexity of the returns. Two states, three or more? the more the more $$$.
I agree pretty much with AM. I'd figure an hourly rate (which you don't need to disclose to the client), and get about 20-25 hours' worth as a retainer. As you work it down, have the client refill it. And don't ever let it reach zero or a negative amount.
It also depends on how messy the books are. I would ask for a copy of the last filed tax return and the trial balances for the years not filed prior to submitting a bid.
It would depend upon how ell the records are, what kind of person you are dealing with (if They have not filed in 3 years BEWARE), Definitely get paid up front based upon an hourly rate, and charge them up front for the preliminary review of what needs to be done
