If you want to do your taxes, you need to know which tax software to use to get the job done. And if you’re a small business owner like me, you need to be sure you’re investing in the best tax software to fit your needs. After all, you’ll be spending more than $75 in most cases.
Maybe you’ve checked out the best places to get your taxes done and decided to skip the CPA option. Maybe you’re in your first year of business and want to keep things simple. Or maybe it’s too late to get started with professional in-person help, and you want to file your business taxes online.
Whatever the case, here is our list of the best tax software for small business owners. Please review our list and find the best one for you and your business.
Note: most of these tax programs will be best for small business owners who are LLCs that file a Schedule C on their 1040 form to report their business earnings. This isn’t for corporations, s corps, or partnerships. Except for TaxAct, which does offer TaxAct Business, an online tax software for corporations.
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$89.00
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$0
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$64.95
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$68.00
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$49.95
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Now let’s dig into the details of each of these. You can combine e-file with direct deposit for all versions to get your fastest refund.
Best Overall: TurboTax
Best for Corporations: TaxAct
Best on Price: FreeTaxUSA
Best Virtual: TurboTax
Best for Freelancers: TaxSlayer
What is the Best Tax Software for Small Business Owners?
1. TurboTax Self Employed
TurboTax is a longtime tax software provider. They offer one free personal option for simple tax circumstances. Their paid tiers are similar in features to other software but cost a bit more.
- The Deluxe version is $39 and covers situations like owning a home
- The Premiere is $69 and includes stock investing
- The Self-Employed is $89 and is set up to handle 1099 or self-employment income
Essentially, the more complex your tax situation, the higher the cost. And the free option is the only one that gives you a free state return. Otherwise, state returns are $39. TurboTax is well-known for maximizing deductions and getting you the most accurate tax return possible.
Is TurboTax good for business owners? Let’s do a quick rundown of what they offer. TurboTax is best suited for small businesses that are freelancers and independent contractors. With TurboTax Self Employed you can:
- Get an in-depth look at deductions applicable to your unique industry, such as rideshare, online sales, and personal/professional services
- Get guidance on different expenses like standard vs. actual mileage, cell phone use, home office costs, and supplies
- Stay up to date on the latest tax deductions and credits available to you
- Designed specifically for those self-employed individuals who have to file a 1099-NEC or Schedule C
In short, if you run a simple business, TurboTax can handle it. And since their software is the best, you can trust that you’ll get the best tax software for your business.
In addition to the online self-employed version, TurboTax does offer a $180 downloadable/CD version of what they call TurboTax Business. This is their software that can be used to complete your business taxes if you are a Corporation. We won’t cover it in detail since it’s not online.
Coupon/Discount: Take and Additional $20 Off
Full Review: TurboTax Review
2. TaxAct Self Employed & TaxAct Business (Online)
TaxAct, which you may not know as it flies a bit under the radar, also offers online tax preparation. The free option provides both federal and state filing for free. For each of the paid versions, you’ll pay an additional $44.95 for state filing.
- The Deluxe version is $24.95 and helps you maximize deductions and HSA contributions
- The Premier version is $34.95 and is best for simple filers that may be investors and homeowners
- The Self-Employed version costs $64.95 and works best for the self-employed and small business owners
Is TaxACT good for business owners? TaxAct Self-Employed is a great option for self-employed individuals and small business owners. It supports a variety of business tax forms, as well as a deduction maximizer, to help you uncover deductions you may have otherwise overlooked. With TaxAct Self-Employed, you can:
- Import data from previous returns, utilize best-in-class security, view real-time refund status updates, file your state return in minutes and receive step-by-step guidance for maximum refund accuracy.
- Alerts are available to inspect your return for any errors or omissions, and bookmarks allow you to navigate your return on your own terms.
- Use Deduction Maximizer
– a tool designed to help freelancers and independent contractors keep more of their self-employment income. It provides support for reporting income, expenses, depreciation, and more. Plus, it can help you find deductions that you may have missed. - Free e-file and free support are also included.
In addition to this self-employed version, TaxAct has TaxAct Business, which lets you file your small business taxes online for $124.99, even if you are a corporation, s corp, or partnership. TaxAct Business allows you to purchase a bundled software package for $199 to get both personal and business paid for in one shot.
Full Review: TaxAct Review
3. TaxSlayer Self Employed
You can electronically file your tax return with TaxSlayer. Here’s a link to their free version for those with the most straightforward tax situations, including free state filing. For their other versions, state filing is $39.95. TaxSlayer is an affordable and reliable tax preparation software that allows you to do your taxes. It was first introduced in 1992 as a tool for professional tax preparers, accountants, and CPAs.
- The Classic version is just $19.95 and probably fits most tax situations.
- The Premium option is $39.95, which includes access to live chat assistance and Ask a Tax Pro
- The Self-Employed version is $49.95; this is for those who are 1099 workers or self-employed
Is TaxSlayer good for business owners? Let’s look at what they offer. TaxSlayer Self-Employed is designed to meet the needs of small business owners, contractors, and side hustlers who need to file both a 1099 and a W-2. With TaxSlayer you can:
- Prepare, print, and e-file with confidence to submit your tax return directly to the IRS
- 1099 & Schedule C support with guidance on entering business income and expenses to maximize deductions, plus unlimited phone, email, and live chat support
- Ask a Tax Pro for advice on self-employed taxes
- Access personalized tax tips and resources to make filing easier for self-employed individuals
- Gain total peace of mind with audit defense from a tax professional and legal representation in the case of an IRS audit for 3 years
- Receive tax payment reminders to keep up with payments throughout the year and avoid fees. Print payment vouchers with ease!
TaxSlayer does not offer tax filing for businesses that operate as an s corp, c corp, or partnership.
Coupon/Discount: Get 25% Off TaxSlayer Self-Employed
Full Review: TaxSlayer Review
4. H&R Block Self-Employed Online
H&R Block, which you may know for its human tax preparation, also offers online tax preparation. The free option provides both federal and state filing for free. For each of the paid versions, you’ll pay an additional $37 for state filing.
- The Deluxe Online version is $28 and helps you maximize deductions and HSA contributions
- The Premium Online version is $44 and is best for freelancers, contractors, and investors
- The Self-Employed Online version costs $68 and works best for the self-employed and small business owners
Is H&R Block good for business owners? To answer that, we’ll look at what they offer. H&R Block Self-Employed Online offers all the bells and whistles that self-employed individuals and small business owners need to complete their taxes easily. With an easy-to-use platform, encrypted security protocol, accurate calculation of tax deductions, and a step-by-step wizard feature to guide you through – this online tax filing service is perfect for those who want fast, stress-free filing! With H&R Block you can:
- Simple income reporting: Enjoy easy reporting for profits and losses from your businesses. Filing small business taxes online has never been simpler.
- Personalized guidance: Let us walk you through industry-specific expenses, giving you the knowledge you need to save money.
- Technical help: Rely on tech support when and where you need it. Chat live or call and get help while you do your taxes online.
- Your max refund: Take advantage of every business credit and deduction in the tax code to get your maximum refund every time you file.
- Easy Uber import: Bring all your Uber income (1099-K, 1099-MISC) directly from your Uber driver’s account. See? Simple.
- Expense tracking: Save money by tracking mileage, business expenses, and receipts annually. We make it easy every single time.
In addition to H&R Block Self-Employed Online, you can use H&R Block to complete your business taxes through its Block Advisors service. Since we’re focused on software for this review, we are not covering this service in-depth here. But it does start at $260 for a virtual advisor to help you complete your business taxes.
Coupon/Discount: Get 20% Off H&R Block Self Employed
Full Review: H&R Block Review
5. FreeTaxUSA Self-Employed
FreeTaxUSA, which you probably know as the free file option, also offers online tax preparation. All versions are free. However, you’ll pay an additional $14.99 for state filing.
The Advanced version is $0 and helps you maximize deductions from your home
The Premium version is $0 and is best for filers that may be investors and landlords
The Self-Employed version costs $0 and works best for contractors and freelancers
Is FreeTaxUSA good for business owners? FreeTaxUSA does offer basic tax filing services for the self-employed. And yes, you can start your return for $0. You may ultimately find that you need to upgrade that to their Deluxe service to get live chat or priority support, but starting at $0 is pretty awesome. With FreeTaxUSA Self-Employed, you can:
- Over 350 Credits/Deductions
- Includes itemized deductions and hundreds more
- Prior Year Info Import – Import your prior year tax information
- Tax Return Backup – Print your finished tax returns now or later
- Filing History – Compare this year’s numbers with last year
- Small Business Income- File taxes with self-employed, 1099, or contractor income
FreeTaxUSA does not offer tax filing for businesses that operate as an s corp, c corp, or partnership.
Full Review: FreeTaxUSA Review
Common Questions About Small Business Tax Software
Can I do my small business taxes myself?
You can do your small business taxes yourself, but it is essential to remember that tax laws can be complex and ever-changing. If you are unfamiliar with current regulations, it may be wise to consult a professional. A Certified Public Accountant (CPA) can provide valuable guidance on filing your taxes correctly and preventing errors or penalties. They may also be able to identify deductions and credits that could help lower your tax burden.
What is the best tax software for single-member LLCs?
All the options above will work for the single-member LLC. If that’s you, pick one above and get started.
What software do tax preparers use?
Tax preparers that work for H&R Block will use the professional version of their software. Most other tax preparation professionals and CPAs will use tax prep software called ProSeries from Intuit (TurboTax’s parent company).
How can I do my business taxes for free?
It may prove challenging to get your business taxes completed for free. Here’s what I would suggest. First, you could try FreeTaxUSA, which offers a bare-bones version of its software and service for $0. You may find that you have to upgrade service levels with them or pay for a state return. But you are starting from $0. Second, you could print off Form 1040 and the appropriate schedules and fill it out yourself.
The post The Best Tax Software for Small Business Owners in 2023 appeared first on Part-Time Money®.
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