The Best Small Business Tax Software in 2024
Small business tax software removes the complexity of preparing a return by using a question-and-answer format, also known as interview-based tax software. This means that to use tax software to do your returns, you don’t have to be a certified public accounting (CPA) or tax professional.
Taxes are inescapable, and so too is tax return preparation. Every year, millions of taxpayers must go through the ritual of filing a tax return. Since, in most cases, only a single return for the year is required, the job of preparing a tax return should be easy. But it isn’t. The tax code is notoriously complicated, and changes every year.
However, today’s small business owners need not go to great lengths to make sense of the dozens of ever-changing tax rules.
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Small Business Tax Software - 2024
| H&R Block | TaxSlayer | TaxAct | TurboTax | FreeTaxUSA | eFile | |
|---|---|---|---|---|---|---|
| Our Ranking | 1st | 4th | 5th | 3rd | 2nd | 6th |
| Product Features | 4.8 | 2.9 | 2.9 | 3.4 | 3.6 | 2.1 |
| Ease of Use | 4.9 | 4.6 | 3.1 | 4.8 | 4.8 | 2.9 |
| Accuracy | 4.5 | 4.3 | 4.3 | 4.2 | 4.4 | 4.2 |
| Cost | 4.3 | 4.5 | 3.9 | 4.1 | 4.9 | 4.7 |
- Best Overall: H & R Block
- Best Free Software: FreeTaxUSA
- Best for Additional Support: TurboTax
- Best for Self-employed: TaxSlayer
- Best for Businesses with more Complex Taxes: TaxAct
- Best for Small Business: eFile
Our Approach: To select the best tax software for small business, we reviewed six different small business tax software programs based on:
- Product Features
- Ease of Use
- Accuracy
- Cost
Recommended: H&R Block
H&R Block emerged as the best overall small business tax software. Its user interface is intuitive and easy to understand, and the application is a breeze to use. In spite of that simplicity, the software can handle a diverse range of tax scenarios with near-perfect accuracy.
Best Overall Software: H&R Block
H&R Block has been a trusted name in tax preparation since its founding in 1955. The company operates from over 12,000 offices across the world, offering tax preparation services through company-owned and franchise retail locations, as well as through online software.
H&R Block tax software users can file taxes completely on their own or have their return reviewed by a tax expert, EA, or CPA for an extra fee. The company offers four major products. The two DIY File Online products are a Premium Online Plan and a Self-Employed Online Plan. Each DIY plan has an online assist version with expert guidance and review services added.
The Premium & Business Tax Software for small business owners with 10+ itemized expenses costs $79.95.
Here is a quick summary of what H&R Block offers:
- Ability to import previous years’ tax returns from another application
- Audit representation free of charge if required
- Expert guidance by chatting with a tax pro
- Integrate with Xero Accounting System
- Extra assurance if you choose Tax Pro Review
Pros:
- Self-employment and small business income included in online version
- Online version offers option to upgrade for expert assistance
- Mobile app allows upload of tax documents
- Tracking for filing status
Cons:
- Business versions are relatively costly
- Partnership and corporation forms only available in desktop version
- Can’t complete return with mobile app alone
Visit H&R Block to learn more.
Best Free Software: FreeTaxUSA
FreeTaxUSA has been providing free tax preparation services for individual federal returns since being founded in 2001 by CPA firm TaxHawk. Small business federal returns are also free. State tax returns cost $12.95 per state filed.
There’s also a paid plan. FreeTaxUSA offers a Deluxe Plan for $6.99, which lets users chat directly with specialists, amend tax returns after they’ve been submitted, and access audit specialists who can answer questions in the event of an IRS audit.
Here is a quick summary of what FreeTaxUSA offers:
- Easy import of prior years’ returns from TurboTax, H&R Block, or TaxAct
- Real-time monitoring of information entered
- Double-check input after a section is completed
- Run a final check before you efile.
- Low pricing
Pros:
- Free federal filing and low-cost state filing for business taxes reported on Schedule C
- Low-cost $6.99 upgrade to deluxe edition includes priority support and live chat
- Amended returns are free, and audit assistance is included in Deluxe Edition
Cons:
- No downloadable version available
- No support for partnership or corporation tax preparation
- Less support with the Basic Free Edition
Visit FreeTaxUSA to learn more.
Best for Additional Support: TurboTax
TurboTax is, perhaps, the market leader in tax preparation software for both individuals and businesses. It was created in 1983 by Intuit, the company that developed QuickBooks. The software includes an option to get on-demand support from a tax professional at home.
TurboTax also provides strong technical support for its online and downloadable products, which is why we have chosen it as the best for additional support. TurboTax Self-Employed costs $119.99, plus $39.99 for each state return.
Here is a quick summary of what TurboTax offers:
- Easy-to-use interface
- Can import past years’ returns on PDFs
- Option to get direct help from tax professionals through TurboTax Live.
- Offers both a DIY TurboTax Small Business Plan and a TurboTax Live plan
Pros:
- Online version well-suited for self-employed business owners
- Online and offline versions available (Windows only)
- Online version can be upgraded for live support from a CPA or enrolled agent
- Good online interface that’s easy to use and navigate
Cons:
- More costly than most competing tax softwares
- 1065, 1120, and 1120S forms only available for Windows desktop version
- Little additional tax support unless purchasing TurboTax Live
- Windows-only downloadable version
Visit TurboTax to learn more.
Best for Self-Employed: TaxSlayer
TaxSlayer has been in the tax preparation business for over half a century. Founded in 1965, the company now prepares and files over 10 million returns each year. It offers a quite competitive low-cost tax filing solution for businesses, which comes with a lot of support.
TaxSlayer is best for the self-employed. Its moderate pricing and highly rated online experience works well for taxpayers who receive a year-end 1099 and need to complete a Schedule C.
The Self-Employed Plan costs $55 per month.
Example business types that might be best suited to TaxSlayer
TaxSlayer is best suited to the needs of contractors, freelancers, and sole proprietors, such as freelance writers, artists, plumbers, electricians, and those running a solo shop.
Here is a quick summary of what TaxSlayer offers:
- Ideally suited for contractors, “1099ers,” and other sole proprietors.
- Good range of features and functions
- Intuitive interface
- Audit assistance
- Affordable pricing
Pros:
- Access to a tax professional with self-employed version
- Comparatively low pricing for federal tax return
- Support options include chat, email, and phone
- Federal filings are free for active-duty military households
- Links pricing given level of support
- Pricing not tied to features: all packages carry same features
Cons:
- No support for forms 1065, 1120, or 1120S for partnerships and corporations
- No download version available
Visit Tax Slayer to learn more.
Best for Businesses with more Complex Taxes: TaxAct
TaxAct started operations in 1998 as a low-budget online tax preparation service. It’s moved on quite a bit since then, incorporating a level of sophistication that many competitors lack. For instance, it's the only provider in our roundup that lets partnerships and corporations file online.
TaxAct supports filing for sole proprietorships, partnerships, C corporations, and S corporations. The Federal Edition costs $140, and the State Edition costs $35 per state (with the price being $99 for All-States).
Here is a quick summary of what TaxAct offers:
- Ease of use
- A downloadable version for offline use (Windows computers only)
- Widest variety of business entities supported for online filing
- Generous tax accuracy and maximum refund guarantees
Pros:
- Returns for partnerships, C corporations, and S corporations may be filed completely online
- Unlimited free support from tax pros by phone and email
- Both online and offline versions available (Windows only)
- Discounts available for bundling personal and business taxes
Cons:
- Each copy of software supports only one business
- Limited audit support options
- State forms electronic versions may not be available
- Downloadable version for Windows only
Visit TaxAct to learn more.
Best for Small Business: eFile.com
eFile.com is an IRS provider that is owned and operated by Florida-based TaxWork LLC. Their software is a simple yet effective application for preparing tax returns. It’s only available in an online version, but that online version is offered at three service levels: Free Basic, Deluxe, and Premium.
The Premium edition is the one for those earning over $100,000, including those who are self-employed. For the Federal Tax Return Service, the Premium costs $39.95. The Unlimited States Return Service Fee is $28.95. This is a good deal for small businesses that operate in more than one state. Most tax preparation providers charge a per-state fee.
Here is a quick summary of what eFile.com offers:
- Intuitive easy-to-use interface
- Personally assigned “taxpert” support agent
- Humorous framework to ease the monotony of use
- Can start Deluxe or Premium Versions free
- All users get the free Federal Edition
Pros:
- Calculator system for quick estimates before you file
- Interface allows skipping to other sections easily
- Free audit assistance
- Unlimited state returns
Cons:
- No facility to file corporations form 1120
- Basic support: file a ticket online and wait
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Visit eFile.com to learn more.
Final Thoughts
The preparation of annual tax returns is an unavoidable aspect of operating a small business. But, there’s no reason this mandatory task should be onerous, complicated, or costly. A variety of tax preparation software currently available makes filing federal and state tax returns straightforward and trouble-free. You don’t have to be a tax pro or an accountant to use them.
In our review of six tax preparation software, we attempted to identify the strengths and weaknesses of each. H&R Block has performed well overall on the factors we assessed: breadth of features, ease of use, accuracy, and cost. In the end, however, the most suitable tax preparation software for your small business depends largely on your tax situation.
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Business Tax Software Frequently Asked Questions
What is the best tax software for a small business?
The best tax software for a small business depends mainly on the type of business and its tax situation. Some small businesses will have special deductions or credits that not all software is set up to handle.
Is TurboTax easy to use for small businesses?
Yes, TurboTax has superior navigation and help features and allows the import of W-2s and 1099s.
Is TurboTax good for an LLC?
TurboTax has two products to serve business owners—TurboTax Home & Business is designed for sole proprietors and 1099 contractors, while TurboTax Business helps you prepare taxes for corporations, partnerships, and limited liability companies (LLCs).
What is the cheapest tax software to use?
The cheapest tax software to use are those that have no-charge versions for both federal and state returns, like H&R Block, TaxSlayer, TaxAct, FreeTaxUSA, and eFile.com.
What is the best professional tax preparation software?
For complicated tax situations, the best tax preparation software may be TaxAct. You can use it to file online for both partnerships and corporations.
How much does H&R Block charge for small business taxes?
Presently, H&R Block charges $79.95 for a federal return plus $36.99 for each state return.
Should I pay myself a salary from my LLC?
There’s no tax reason why you shouldn’t. LLCs are “pass-through” entities. The LLC’s profits and losses pass through to its owners, who report them on their personal tax returns. Learn more about paying yourself from an LLC by reading our guide.
What can I write off as an LLC?
As an LLC, legitimate business expenses, such as operating costs, can be written off. An LLC is not a “taxable entity.” Your LLC will be taxed as a sole proprietorship, partnership, or corporation.
Do I need a small business accountant?
Every business can benefit from hiring a small business accountant service. Not only can an accountant potentially save you thousands of dollars on taxes; they can help manage your business bookkeeping and issue payroll, saving you time and money. Speak with a business accountant today to find out how much money your business can save.
