Montgomery 2320 Business Development Services LLC | Business Advisory Communication

Small businesses did not suddenly become “more expensive” to operate.
What changed is the system surrounding them.

As we move through the 2025 tax cycle, one reality has become unavoidable:

The cost of properly filing a Schedule C has increased, and that pressure is falling squarely on sole proprietors, freelancers, independent contractors, and micro-enterprises.

Let’s be clear and precise.

The IRS did not raise a fee to file Schedule C.
There is no new government charge hiding in the fine print. What business owners are experiencing instead is a market-driven, structural shift in how compliance is achieved and who bears the burden.

Why the Cost Has Increased — Without a New IRS Fee

Several forces are converging at once:

• Professional tax preparation fees have risen due to inflation, increased labor costs, higher professional liability insurance, and expanded regulatory oversight.
• Tax reporting complexity has escalated, including stricter documentation standards, increased audit exposure, and evolving reporting mechanisms such as 1099-K thresholds and third-party payment disclosures.
• Free or low-cost government filing options are being reduced or eliminated, quietly transferring responsibility back to the business owner.
• Tax software pricing for self-employed filers has increased, often requiring paid upgrades just to file a compliant Schedule C.

This is not a cosmetic change.
This is risk exposure being reallocated downstream.

Schedule C Is No Longer a “Simple Attachment”

For today’s small business, Schedule C functions as a financial disclosure document, not a side form. It directly impacts:
• Audit probability and exposure
• Deduction defensibility
• Income classification and reporting accuracy
• Overall compliance posture
• Long-term business credibility with lenders, partners, and agencies

Errors here don’t stay isolated. They compound.

Cutting corners on Schedule C preparation does not save money — it defers cost, often at a much higher price through penalties, amended returns, audits, or lost opportunities.

The Strategic Reality Business Owners Must Accept

Within Montgomery 2320 Business Development Services LLC, we advise clients plainly and without ambiguity:

• Professional tax preparation is no longer optional for serious operators.

• Compliance is a form of business insurance.

• Proper filing is not about convenience — it is about coverage and protection.

The quiet rollback of accessible free filing tools has reshaped the operating environment. Business owners are now expected to self-manage complexity or invest in professional support. Those who fail to adapt will pay later — financially and strategically.

This Is the New Operating Environment
Small businesses that intend to survive, scale, and maintain ownership must evolve with the system they operate in.
Tax preparation is no longer an annual task to “get through.”

It is a strategic function tied directly to:
• Capital protection
• Risk management
• Operational credibility
• Long-term sustainability

In this environment:
Compliance is capital protection.
Preparation is risk management.
Accuracy is leverage.

Our Role
Montgomery 2320 Business Development Services LLC exists to help businesses operate with clarity, resilience, and foresight — not reaction.

We are a strategic business development firm focused on preparing companies for profitability, compliance stability, and ownership longevity in an increasingly AI-mediated and regulation-dense economy.
If you’re building to last, this is the moment to get serious.

Montgomery 2320 Business Development Services LLC
Strategic Business Development | Compliance Advisory | Sustainability Planning