The Best Tax Software For Small Businesses
These easy to use and cost-effective tax software apps can help you file your small business taxes this year with confidence.
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Most small business owners don’t look forward to preparing and filing taxes but realize that it’s a necessary evil. Fortunately, technology has made small business taxes easier than ever, even if you have no prior tax experience. Tax preparation software allows you to quickly and accurately do your taxes without having to pore over tax codes or fill out stacks of forms by hand. Tax software also typically costs far less than hiring an accountant or tax preparer.
But with so many options, how do you know which is the best fit for your business? If you’re unsure of what software to use this tax season, you’re in the right place. We’ve done our research, and in this post, we’ll look at the top tax software options. Each of these programs is well-known and widely used among individuals and small business owners. Keep reading to find out more about the tax software options available to your business.
Learn More About Our Top Picks
| Company | Summary | Next StepsSummary |
|---|---|---|
 | Best for complex returns. | Best for complex returns.
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 | Best tax software for corporations, partnerships, and LLCs | Best tax software for corporations, partnerships, and LLCs
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 | Best cloud-based tax software for freelancers. | Best cloud-based tax software for freelancers.
|
 | Best tax software for independent contractors. | Best tax software for independent contractors.
|
 | Best free tax software for self-employed taxpayers. | Best free tax software for self-employed taxpayers.
|
Read more below to learn why we chose these options.
Table of Contents
The 5 Best Tax Software For Small Businesses
You don’t have to have prior tax experience to file your own small business taxes. You can prepare and file your taxes quickly and easily using small business tax software. We’ll look at the best tax software for your small business, including Turbo Tax, H&R Block, FreeTaxUSA, TaxSlayer, and TaxAct.
1. TurboTax: Best Tax Software For Complex Returns
TurboTax
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Best for businesses of all sizes with complex tax returns.
Pros
- Locally-installed and cloud-based options
- Easy to use
- Excellent customer support
- Numerous features
Cons
- Expensive
Intuit’s TurboTax offers various online and desktop software options at multiple price points. While some options are on the more expensive side compared to other tax software, the tradeoff is a number of great features, such as industry-specific deductions and walk-throughs to help improve accuracy and lower your tax liability. An easy-to-use interface makes it a breeze to prepare, file, and pay your taxes, even if you have no prior tax experience. TurboTax also supports multiple tax forms for businesses of all sizes.
All plans come backed with an Audit Support Guarantee. TurboTax also offers personalized guidance and one-on-one help from a TurboTax specialist. If you purchase a Live plan, you’ll receive year-round tax advice, on-demand advice from a CPA, and a final review of your return.
TurboTax is ideal for business owners with complex returns who don’t mind paying extra for all the bells and whistles. If you’re unsure of whether TurboTax is right for you, you can test out the online software at no cost and only pay when you file.
TurboTax Pricing
TurboTax has a wide range of desktop and cloud-based software options available at multiple price points. You can also purchase TurboTax Live, which provides you with expert tax advice and a final review before you file your return. All plans include a federal tax return. Additional fees are required for state returns.
| Pricing Plan | Cost | Best For |
|---|---|---|
| TurboTax Self-Employed | $119 | Users that want cloud-based software to report personal and business income and expenses |
| TurboTax Live Self-Employed | $199 | Users that want cloud-based software combined with professional tax advice |
| TurboTax Home & Business | $120 | Users that want locally-installed software to report personal and business income and expenses |
TurboTax Features
TurboTax is a top player in the tax software industry, and it’s easy to see why. This tax software is loaded with features that help simplify filing business taxes.
Some of the features you can expect to find in TurboTax’s software include:
- 350+ deductions
- Schedule C filing
- Stocks, bonds, and other investments
- Rental properties
- Personalized audit assessment
- Electronic K-1 forms
- W-2, 1099-MISCs, 1099-INTs, and 1099-DIVs
Should I Use TurboTax To File My Taxes?
TurboTax comes loaded with features that make it easier for businesses of all sizes to prepare and file their tax returns accurately. While it may be priced higher than other tax software, TurboTax’s software — especially its Live versions, which connect you with a CPA — costs a fraction of what you’d pay to hire an accountant. If you have a simple return, consider shopping around for other options, but if you have a complicated return, you won’t be disappointed by what TurboTax has to offer.
2. H&R Block: Best Tax Software For Corporations & LLCs
H&R Block
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Best for corporations, partnerships, and LLCs that want easy-to-use tax software.
Pros
- Locally-installed and cloud-based options
- Easy to use
- Numerous features
- Supports numerous tax forms
Cons
- Fair customer support
H&R Block offers numerous cloud-based and locally-installed software options for business owners. Besides products suited for freelancers, contractors, and small businesses, H&R Block’s Premium & Business Tax Software offers support and resources for corporations, LLCs, and partnerships.
Depending on the software you choose, you’ll have access to various features, including tax return storage, deduction optimization, a free state return program, support for numerous tax forms, and on-demand help from a tax expert or CPA.
H&R Block has multiple customer support options and resources for customers, including tax prep checklists, tax calculators, and an online help center. The software also has generally positive reviews among its users for its ease of use and transparent pricing.
H&R Block Pricing
H&R Block offers a number of tax products designed for businesses of all sizes. You can choose from either cloud-based or locally-installed software. Additional add-ons are available, including unlimited help and advice from tax experts starting at $69.99 and state tax returns. In-office filing and drop-off services are also available — contact H&R Block for more details.
| Pricing Plan | Cost | Best For |
|---|---|---|
| Self-Employed | $109.99+ | Self-employed, freelancers, and gig workers |
| Premium | $74.95 | Self-employed individuals or property owners that want locally-installed software |
| Premium & Business | $89.95 | Self-employed, freelancers, and gig workers that want locally-installed software |
H&R Block Features
All H&R Block software comes with the features you’d expect from tax software, such as:
- Federal return preparation and e-filing
- Optimization of Schedule C and Schedule E
- Tax return storage for six years
- Donation optimization
- Import expenses from expense tracking apps
- Cost basis calculation
Should I Use H&R Block To File My Taxes?
H&R Block offers multiple tax products suitable for businesses of all sizes, and it is particularly suited for corporations, partnerships, and LLCs. The software’s abundant features, easy-to-use interface, support options, and resources are just some of the reasons that this is a top pick among taxpayers.
3. TaxSlayer: Best Cloud-Based Tax Software For Freelancers
TaxSlayer
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Best for freelancers, self-employed individuals, and contractors that want easy-to-use cloud-based software.
Pros
- Competitive pricing
- Good customer support
- Easy to use
Cons
- No locally-installed software
- Unsuited for large businesses
TaxSlayer offers multiple pricing tiers for its online software, including its Self-Employed product, which is suited for freelancers, contractors, and side hustlers. TaxSlayer has gained a solid reputation among its users for its affordable and easy-to-use tax software.
TaxSlayer strikes a balance between affordable pricing and a set of features that help you file your tax return with confidence. Standout features include TaxSlayer’s credit and deduction finder, audit assistance, accuracy guarantee, and the Ask A Task Pro service. TaxSlayer’s software can also be used on any device, making it more convenient to file your taxes.
All users have access to free email and phone support. Self-Employed users get priority support to get their questions answered quickly. TaxSlayer also offers a service called Ask A Task Pro, which allows taxpayers to connect with a tax expert.
TaxSlayer Pricing
TaxSlayer has several cloud-based options, but its Self-Employed online software is designed with the freelancer in mind. This plan includes one federal return, with state returns available for an additional fee.
| Pricing Plan | Cost | Best For |
|---|---|---|
| TaxSlayer Self-Employed | $54.95 | Small business owners, freelancers, and side hustlers |
TaxSlayer Features
TaxSlayer isn’t the most robust tax software on the list, but it has a number of great features for the self-employed, including:
- Return prep and e-filing
- Three years of audit assistance
- Priority customer support
- Advice from tax pros
- Optimization of Schedule C deductions
- 1099 guidance
- Live chat support
Should I Use TaxSlayer To File My Taxes?
TaxSlayer’s software offers the features needed to easily and accurately file tax returns without breaking the bank. TaxSlayer’s Schedule C and 1099 support in its Self-Employed product make this a good choice for freelancers, contractors, and side hustlers. Larger businesses and taxpayers with more complicated returns will want to seek out other software options.
4. TaxAct: Best Tax Software For Contractors
TaxAct
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Pros
- Easy to use
- Locally-installed and cloud-based options
- Excellent customer support
Cons
- Unsuited for large businesses
TaxAct offers different software to fit the needs of its customers. In addition to providing free e-filing to qualified taxpayers through its membership in the Free File Alliance, TaxAct also offers software that’s ideal for independent contractors and small businesses.
Some of the most notable features of TaxAct include the Deduction Maximizer to help you get the most out of your return, the $100K Accuracy Guarantee, and year-round tax support. TaxAct has numerous support options to help taxpayers throughout the tax prep and filing process.
TaxAct Pricing
TaxAct offers several products suitable for small business owners. You can choose from cloud-based or locally-installed options. All software includes federal return e-filing. State filings can be added for an additional fee.
| Pricing Plan | Cost | Best For |
|---|---|---|
| TaxAct Self Employed (Online) | $64.95 | Freelancers, contractors, and small business owners that want cloud-based software |
| TaxAct Self Employed (Download) | $139.95 | Freelancers, contractors, and small business owners that want locally-installed software |
| Sole Proprietor (Online) | $64.95 | Sole proprietors filing Form 1040 & Schedule C |
| Sole Proprietor (Download) | $139.95 | Sole proprietors filing Form 1040 & Schedule C |
| Partnership (Online) | $109.95 | Partnerships filing Form 1065 |
| TaxAct Business 1065 | $109.95 | Partnerships filing Form 1065 |
| C Corporation (Online) | $109.95 | C-Corps filing Form 1120 |
| TaxAct Business 1120 | $109.95 | C-Corps filing Form 1120 |
| S Corporation (Online) | $109.95 | S-Corps filing Form 1120S |
| TaxAct Business 1120S | $109.95 | S-Corps filing Form 1120S |
TaxAct Features
TaxAct’s tax software offers a number of features, including:
- Federal return preparation and e-filing
- Deduction Maximizer
- Priority support
- Seven-year storage of returns
- Maximum refund and accuracy guarantees
- Year-round support
Should I Use TaxAct To File My Taxes?
TaxAct offers easy-to-use tax software that’s available online or as a download. While larger businesses may not find everything they need with this software, independent contractors will benefit from the step-by-step guidance, quality customer support, and TaxAct’s accuracy guarantee.
5. FreeTaxUSA: Best Free Tax Software For Self-Employed Taxpayers
FreeTaxUSA
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Best free tax software for self-employed taxpayers on a budget.
Pros
- Free federal tax filing
- Easy to use
- Fast customer support
Cons
- Unsuited for large businesses
- No locally-installed software
Cut down on your tax-related expenses this year by signing up with FreeTaxUSA. This cloud-based software is available for the low cost of $0. Unlike other free tax software, this option is available to self-employed taxpayers.
Even though it’s free, FreeTaxUSA has a solid number of features to help you prepare and file your business taxes. Notable features include prior year imports, tax return backups, donations, and hundreds of credits and deductions. FreeTaxUSA supports numerous tax forms for all types of income — from self-employment to rental properties and investments.
FreeTaxUSA also offers support to help you navigate the tax filing process. FreeTaxUSA has received numerous positive reviews for its fast customer support times, with most users receiving a response in under an hour.
FreeTaxUSA Pricing
FreeTaxUSA has a base plan that’s free for all users. However, you can opt to upgrade your plan to receive unlimited amendments, priority customer support, and audit assistance. You can also pay an additional fee to prepare and file your state tax return.
| Pricing Plan | Cost | Best For |
|---|---|---|
| Free Edition | $0 | Self-employed taxpayers and small business owners that want free tax software |
| Deluxe Edition | $6.99 | Taxpayers that want audit support & priority customer support |
FreeTaxUSA Features
For free software, FreeTaxUSA has a pretty good set of features that make it a solid contender with paid business tax software. Here’s what you can expect from FreeTaxUSA:
- 350+ credits & deductions
- Tax return backups
- Import prior-year tax info
- Charitable donations
- Small business income
- Rental & investment income
- Supports numerous tax forms
Should I Use FreeTaxUSA To File My Taxes?
If you don’t want to spend a fortune filing your taxes, FreeTaxUSA may be the right software for you. This cloud-based software is ideal for self-employed individuals, independent contractors, and freelancers, although businesses with more complex returns may want to seek other options. If you want additional protection and support, it may be worth investing in the Deluxe plan, which is priced less than $10.
Tax Software FAQs
Tax time can be stressful, and it’s common to have lots of questions about preparing and filing taxes — from important deadlines to when it’s time to hire a tax professional. Read on for some of the most common questions about filing small business taxes.
When Do I Need To File Business Taxes By?
The deadline for filing your federal and state tax returns is based on your business structure. Most small business owners will have the same tax deadline as individual taxpayers — April 15, or the next business day if it falls on a holiday or weekend. However, there are a few exceptions. Note these important dates to remember for filing your business taxes.
| Business Classification | File By |
|---|---|
| Sole Proprietorships | April 15 |
| Single-Member LLCs (Disregarded Entities) | April 15 |
| C-Corporations | April 15 |
| Partnerships | March 15 |
| Multimember LLCs | March 15 |
| S-Corporations | March 15 |
How Much Does It Cost To File Business Taxes?
The cost of filing business taxes varies significantly. Self-employed taxpayers and small businesses with simple tax returns can often file for $100 or less. Self-service software for more complex returns generally costs around $100 to $200+. If you hire a CPA or tax professional, expect to pay $100 or more per hour.
Are There Free Tax Software Options?
There are options for filing your taxes that are available at no cost. However, there are a few things to keep in mind before starting your search for free tax software.
First, understand that not everyone is eligible to file their federal returns for free. Depending on the tax software or preparer you use, there may be restrictions surrounding income, state of residence, and age.
Next, make sure that you select reputable, reliable tax software. You want to look for software that’s easy to use and offers solid customer support. The most well-known and highly-rated software programs are set up to ensure accuracy and help maximize deductions to lower your tax liability.
The IRS makes it easy to find the right free software for filing your taxes. The IRS provides a list of companies that offer free filing and has its Lookup Tool that helps match you to the right service for your situation. If you want to file your taxes for free, start with these companies. Please note that to use these services, you must meet specific requirements.
| Tax Software | Age | Income Requirement | State Returns |
|---|---|---|---|
| H&R Block | 17 to 51 | $69,000 or less | ✔ |
| TaxSlayer | 51 or younger | $69,000 or less | ✔ |
| TurboTax | N/A | $36,000 or less
Military: $69,000 or less |
✔ |
| TaxAct | 56 or younger | $59,000 or less
Military: $69,000 or less |
✔ |
| Free 1040 Tax Return | 70 or younger | $69,000 or less | ✔ |
| ezTaxReturn.com | N/A | $69,000 or less | X |
| Online Taxes at OLT.com | N/A | $14,000 – $69,000
Military: $69,000 or less |
✔ |
| FileYourTaxes.com | 65 or younger | $9,000 – $69,000
Military: $69,000 or less |
✔ |
| 1040NOW | N/A | $69,000 or less | X |
| FreeTaxUSA | N/A | $36,000 or less
Military: $69,000 or less |
✔ |
Even if you qualify to file your taxes for free, you may want to weigh your other options. Paid tax services for small business owners often offer features you won’t find with free software, such as advanced customer support and deduction optimization. Choosing a product specifically designed for business owners may cost more upfront, but it could save you money in the long run by maximizing your deductions and credits.
Should I Hire An Accountant To Do My Taxes?
Some business owners just have to bite the bullet and hire a tax preparer or accountant come tax time. When should you consider hiring a tax preparer or accountant? If any of the following are true, consider paying a professional to complete your tax return:
- You don’t have time to accurately prepare and file your tax return.
- You have a complex return.
- You operate multiple businesses.
- Filing your own taxes is too stressful.
- You want to maximize deductions and lower your tax liability.
Hiring an accountant or tax preparer can be costly, but you can reduce your costs by preparing for tax time in advance. Even if you plan to do your taxes yourself, it’s never a bad idea to have an expert look over your return to make sure there are no errors. At the very least, consider paying for software that offers a final review by a tax expert.
Don’t just hire an accountant — hire the right accountant for your business. Check out our post, How To Find The Perfect Accountant For Your Small Business, to learn what to look for before hiring someone.
How Do I Choose The Best Business Tax Software?
Now that you’re familiar with some of the most reputable tax software options on the market, the next step is to choose the right software for your business. Every business has its own unique needs, and unfortunately, there is no one-size-fits-all solution when it comes to selecting tax software. But there are a few key tips to keep in mind to help you narrow down your options and pick the software that works for you.
- Make sure the tax software supports your business structure.
- Get extra protection with audit support.
- Stick with software that’s easy to use and navigate.
- Pick software with live help and good support options and resources.
- Take advantage of free trials and offers.
Tax time doesn’t have to be a hassle, and picking the right software can help alleviate tax-time stress. Prepare during the year so that you’ll be ready come tax time, sign up for the software of your choosing, and file your taxes confidently. Good luck!
Other FAQs About Business Tax Software
In Summary: The 5 Best Tax Software For Small Businesses
- TurboTax: Best for complex returns.
- H&R Block: Best tax software for corporations, partnerships, and LLCs
- TaxSlayer: Best cloud-based tax software for freelancers.
- TaxAct: Best tax software for independent contractors.
- FreeTaxUSA: Best free tax software for self-employed taxpayers.
Erica Seppala
Expert Analyst & Reviewer at Merchant Maverick
An expert in accounting, finance, and point of sale, Erica has been researching and writing about all things small-business since 2018. Erica's insights into personal and business finance have been cited in numerous publications, including MSN, Real Simple, and Reader's Digest. She is a graduate of Limestone College.
View Erica Seppala's professional experience on LinkedIn.
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