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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.

    Erica Seppala
  • UPDATED

Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.

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.

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Best for complex returns
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Best tax software for corporations, partnerships, & LLCs
Best tax software for corporations, partnerships, & LLCs

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Best cloud-based tax software for freelancers
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Best free tax software for self-employed taxpayers
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Read more below to learn why we chose these options.

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.

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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

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 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.

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.

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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

Pricing Plan Cost Best For
TaxSlayer Self-Employed $54.95 Small business owners, freelancers, and side hustlers

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.

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.

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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

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 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.

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.

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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

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 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.

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.

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What You Need To Know About Tax Software

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

Which tax software is best for small business?

The best tax software for your small business depends on a number of factors, such as your business’s legal structure, the features you’re looking for, and the amount of support you need. For many small business owners, TurboTax is a top pick because it is loaded with features. For freelancers, TurboTax may be overkill, and more basic software, such as TaxSlayer, might be a better fit.

Can you use Turbo Tax for small business?

TurboTax has several different software programs designed for businesses of all sizes. You can also choose from online and locally-installed options.

How do I do my small business taxes?

You can go the old-fashioned route by manually filling out forms and mailing in your small business tax return. Or you can simplify the process by signing up for online or locally-installed business tax software that walks you through tax prep, allows you to e-file your return, and helps maximize deductions and other savings.

Can I do small business taxes online?

Yes, you can do small business taxes online. Every step of the process can be done over the internet, from preparing your return to e-filing with the IRS and paying your tax bill. Some online tax software even connects you with CPAs and other finance experts to help you prep and file your small business taxes.

What is the best tax software for freelancers?

TaxSlayer is a great tax software option for freelancers. This software is easy to use, comes backed with good customer support, and is competitively priced. Before committing, though, make sure to check out the other options on our list and do your own independent research to find the tax software that’s right for your business.

How do you calculate small business taxes?

To calculate your small business taxes, you need to gather information on your expenses and income. You’ll also need to have the correct tax forms based on your business’s legal structure. Check out our guide to small business taxes and other resources to learn more. And don’t forget that you can always use small business tax software to crunch the numbers for you!

In Summary: The 5 Best Tax Software For Small Businesses

  1. TurboTax: Best for complex returns
  2. H&R Block: Best tax software for corporations, partnerships, & LLCs
  3. TaxSlayer: Best cloud-based tax software for freelancers
  4. TaxAct: Best tax software for independent contractors
  5. FreeTaxUSA: Best free tax software for self-employed taxpayers
Erica Seppala

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.
Erica Seppala
View Erica Seppala's professional experience on LinkedIn.

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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.

Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.

Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.

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