Best Small Business Tax Software
Features like live assistance, mobile apps and the ability to import information can save you time and help maximize your deductions.
| Lender | Best for… | Starting cost Starting cost – some features may cost extra | Live assistance available | Mobile app available |
|---|---|---|---|---|
 | Best platform overall | $125 + $49 per state filed | Yes, for an additional fee | Yes |
 | Free audit support | $139 + $64 per state filed | Yes, as an add-on service | Yes |
 | Business and personal tax bundles | $109.99 + $64.99 per state filed | Yes for an additional fee | Yes |
 | Included advice from a tax expert | $52.99 + $39.99 per state filed | Yes, included in the package | Yes |
 | Free federal filing options | $0 + $15.99 per state filed | Yes, for an additional fee | No |
Best small business tax software platforms: More details
Best: Platform overall – H&R Block Self-Employed Online
Cost per month starting at: $125 + $49 per state filed
Live assistance available: Yes, as an add-on service
Mobile app available: Yes
Pros
- Guided tax prep process
- Assistance available from AI Tax Assist and live experts
- Audit and tax notice support available for an added fee
Cons
- Pricier than some competitors
- Assistance from a tax professional comes at an added fee
- Prices may be different depending on your business entity type
H&R Block Self-Employed Online earns the top spot for its balance of ease, affordability and features tailored to freelancers and small business owners. The platform stands out for its guided filing process, intuitive interface and support for both personal and business income.
As an H&R Block customer, you’ll benefit from real-time tax guidance, live chat with tax professionals and the option to upgrade to full-service filing if you need expert help. If you use Wave for your small business bookkeeping, you can import your business income and expenses directly into the software to save time on data entry. For other bookkeeping platforms, like QuickBooks Online, you’ll need to generate reports to Excel to bring the data into the software.
It’s not the best choice for larger businesses with complex entity structures or multi-state filings, as it’s primarily designed for sole proprietors and single-member LLCs. But if you value simplicity and support, H&R Block Self-Employed Online delivers good overall value.
Learn more about H&R Block Self-Employed Online.
Best for: Free audit support – TurboTax Premium
Cost per month starting at: $139 + $64 per state filed
Live assistance available: Yes, as an add-on service
Mobile app available: Yes
Pros
- Offers industry-specific deduction suggestions
- Automatically fills in info from your W-2s or 1099s
- Free audit support
Cons
- More expensive than some competitors
- Live assistance is not available to businesses that need more than five state filings
- Live assistance is not available for C-Corps
TurboTax Premium is an excellent choice if you like peace of mind, as it offers free audit support for small business owners. The company provides free, year-round one-on-one audit guidance from experienced tax professionals who explain what to expect and how to prepare if you receive an audit letter.
TurboTax’s Audit Support Guarantee includes step-by-step assistance, and users can purchase Audit Defense (for an additional fee) for full representation through the entire process.
Beyond audit protection, TurboTax Premium offers tools for reporting self-employment income and maximizing deductions. However, this level of guidance and automation comes at a higher cost than some competitors, so it might not be the right fit for smaller businesses on a tight budget.
Learn more about TurboTax Premium.
Best for: Business and personal tax bundles – TaxAct Self-Employed
Cost per month starting at: $109.99 + $64.99 per state filed
Live assistance available: Yes, as an add-on service
Mobile app available: Yes
Pros
- Guided tax prep process
- Ability to import information from prior years
- Bundle your business and personal returns to save
Cons
- Audit support is limited
- Not all state tax forms are supported
- TaxAct discontinued its mobile app in 2023
TaxAct Self-Employed is a good option if you’re a small business owner who wants to file your business and personal tax returns in one affordable package. The platform offers flexible bundles for filing individual returns along with different entity types, including S corporations, C corporations, partnerships and estates and trusts. This makes it easier to manage all of your tax filings on a single platform without paying separately for business and individual returns.
Keep in mind that if you have a sole proprietorship or single-member LLC, you don’t need to file a separate business return. Instead, you can use TaxAct Self-Employed to report your business income and expenses on Schedule C and include it with your Form 1040.
The software includes step-by-step guidance, tools for maximizing your deductions and easy import of prior-year data. It’s great for freelancers and small business owners who want value without sacrificing functionality. However, customer support hours are limited outside peak tax season, so you may need to plan accordingly if you need help from mid-April through January.
Best for: included assistance from a tax expert – TaxSlayer Self-Employed
Cost per month starting at: $52.99 + $39.99 per state filed
Live assistance available: Yes, included in the package
Mobile app available: Yes
Pros
- Expert tax advice is included in the package
- You can auto-fill information from prior-year returns and import tax forms
- Offers quarterly estimated tax payment reminders
Cons
- No support for partnership, multi-member LLC, S-corp or C-corp returns
- No offline version
TaxSlayer Self-Employed is a great option if you want built-in expert tax guidance. Its Ask a Tax Pro feature connects you directly with tax professionals for personalized advice to help you navigate complex deductions, self-employment income and IRS correspondence.
While competitors charge extra for similar support, it’s worth pointing out that TaxSlayer doesn’t specify what kind of tax professionals it hires. The company says its tax professionals are “highly qualified individuals with extensive knowledge in both the U.S. tax code and TaxSlayer’s software. Our tax pros are IRS-certified with advanced experience in tax law, return preparation, and the tax industry.” That could mean they’re Enrolled Agents (EAs), or it could mean they’ve completed the IRS’s Annual Filing Season Program (AFSP), which is available to non-credentialed tax preparers and has a much lower barrier to entry than a CPA or EA.
TaxSlayer also offers intuitive navigation and tools for filing federal and state returns. However, it doesn’t offer options for filing business tax returns, such as Forms 1065, 1120 or 1120-S, so it’s not a good fit for businesses other than sole proprietorships and single-member LLCs.
Best for: Free federal filing options – FreeTaxUSA
Cost per month starting at: $0 + $15.99 per state filed
Live assistance available: Yes, as an add-on service
Mobile app available: No
Pros
- Filing your federal return is free through the service
- You can auto-fill information from prior-year returns and import tax forms
- Audit support and unlimited amended returns are available for an additional fee
Cons
- No mobile app
- State return is not free
- Service offerings are less robust than some other providers
FreeTaxUSA is a great choice if you want an affordable way to file federal taxes without compromising on essential features. The platform offers free federal tax filing for all tax situations, including self-employment income, 1099 forms and common deductions. Most competitors who offer free filing do so only for very simple returns without self-employment income.
Its guided process helps you accurately complete Schedule C forms and claim eligible business expenses. Upgrading to the Deluxe version for $7.99 gives you access to priority technical support and unlimited amended returns. But if you need help from a professional, you can upgrade to Pro Support for $44.99. FreeTaxUSA isn’t transparent about the experience or qualifications of its tax pros.
Also, filing state returns costs $15.99 each, so if you need to file in multiple states, those fees can add up quickly.
What can tax software do for small businesses?
At its core, small business tax software is meant to help make filing your business tax return easier, without costing as much as hiring a tax professional to file it for you.
Many of these platforms offer functionality that makes it easy to file a business return, such as automatically importing W-2 and 1099 information, industry-specific deduction searches and audit support.
How to compare small business tax software platforms
Not all small business tax software platforms are created equal. Here’s what to consider as you pick the option that works best for you.
- Cost: Most small business tax software platforms come at a cost. You’ll have to decide how much you want to spend and whether the price includes the services you need.
- Features: Many platforms offer features to simplify filing, such as importing tax form information, providing a searchable database of deductions and offering audit support. Decide which features will be most appropriate for your business.
- Tax pro assistance: The majority of platforms will give you the opportunity to get advice from a tax professional, though sometimes at an added cost. If that’s something you’re interested in receiving, make sure to choose a platform that offers this service.
- Customer service: All the platforms offer customer service assistance for non-tax questions. However, the contact methods can vary. Choose a platform that offers a contact method that feels accessible to you.
- Mobile app: If you want to file your taxes on the go, select a platform that offers a mobile app.
Pros and cons of small business tax software
Pros
-
Plenty of access
Most small business tax software platforms are online, allowing you to access them from anywhere. -
Ease of use
These platforms are fairly easy to use, with most offering guided tax prep and customer support as well as the option to connect with a tax professional. -
Lower cost
While these programs come at a cost, it is often much lower than working with a tax professional to submit your return.
Cons
-
Added costs
Some platforms require you to upgrade your package or purchase an add-on service to access certain features. -
Time spent
Particularly if your taxes are complicated, you may have to invest a significant amount of time into doing your taxes, even with the platform’s assistance. -
Lack of oversight
Doing your own taxes puts you at risk of making mistakes or missing deductions
What happens if I’m audited?
A tax audit is a formal review by the IRS or state tax authorities to verify the accuracy of your return. Being audited doesn’t always mean you’ve done something wrong. Sometimes the IRS randomly selects your return. But you’ll need to provide documentation that supports the income, deductions and credits you claimed. As a small business owner, this might include receipts, bank statements, invoices and mileage logs.
Many tax software programs include audit support, which guides you on how to respond to the IRS. For example, they might explain what documents you need to gather, what to expect during the audit process and how to respond to IRS notices.
Some also offer audit defense for an additional fee. Audit defense goes a step further by assigning a tax professional who can communicate directly with the IRS on your behalf.
If you’re audited and your software doesn’t offer these services, you’ll need to respond promptly. You may want to hire an EA, CPA or tax attorney to represent you.
Alternatives to small business tax software
If small business tax software is not the right choice for you, there are some alternative options.
Hire a tax professional
If you’re nervous about doing your own taxes, you may want to consider hiring a tax professional to work on your return for you. In this case, you’ll bring the tax pro any applicable tax forms and business information. They’ll likely ask you some questions along the way, but they will do the heavy lifting of filling out tax forms and filing your return.
Take a DIY approach
On the other hand, if you have some knowledge of bookkeeping and accounting principles, it’s possible to do your taxes on your own. Keep in mind that while this route will save you money up front, it will probably require a big investment of time and energy. There’s also some risk involved, as you could face fines or penalties if you make a mistake on your return.
Our methodology: How we chose the best small business tax software
We reviewed 14 small business tax software platforms to identify the five best overall solutions. We considered a number of factors, including:
- Affordable cost: We prioritized providers that were lower in cost compared to the competition.
- Robust features: We chose providers that offered a wide range of features, even if some of those features come at an added cost.
- Available tax pro assistance: We highlighted providers that give users the option to connect with a tax professional for expert assistance.
- Convenient customer service: We considered the providers’ available customer service options and prioritized those that offered a wider variety.
- Mobile app functionality: We also weighed whether it was possible to access the software platform from a mobile app, favoring software that’s accessible from anywhere.