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.

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Written by Tara Mastroeni | Edited by Dawn Daniels | October 18, 2024

Small business tax software platforms at a glance

H&R Block Self-Employed Online: Best platform overall

$115 + $49 per state filed

Yes, as an add-on service

Yes

Our verdict
H&R Block earned our best overall pick for its comprehensive service offerings, but it can be pricey.
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

Why we picked it

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H&R Block is our pick for the best overall small business tax software because of the wide variety of services the company provides. Its Self-Employed Online plan sets you up for success with a guided tax prep process and assistance from artificial intelligence (AI) and live experts. However, if you need more help, there’s also the option to work with a tax professional. Plus, they offer support if you get a notice from the IRS.

Still, H&R Block is pricier than some competitors, not to mention that its pricing structure can be confusing. Your cost will vary depending on which business entity type you’ve chosen and its professional tax prep services and audit support come at an additional charge.

Learn more about H&R Block Self-Employed Online.

TurboTax Premium: Best for free audit support

$129 + $64 per state filed

Yes, as an add-on service

Yes

Our verdict
TurboTax makes it easy to file your return on your own, but its live support add-on has some big limitations.
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 for businesses is only available in certain states
  • Live assistance is not available for C-Corps

Why we picked it

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TurboTax aims to make filing easy by offering users the chance to snap a picture of their tax forms and have the information automatically filled in on their return. Plus, the platform will offer suggestions for industry-specific deductions that users can take. But what really sets this platform apart is that free audit support is included in your fee.

But TurboTax may not be an appropriate fit for all businesses. Live assistance is not available for C-Corps, nor is it available to business owners who live outside of the following states: Alaska, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Kansas, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, North Carolina, New Jersey, Nevada, New York, Ohio, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, West Virginia and Wyoming.

Learn more about TurboTax Premium.

TaxAct Self-Employed: Best for business and personal tax bundles

$79.99 + $59.99 per state filed

Yes, as an add-on service

Yes

Our verdict
If you’re interested in bundling your personal and business tax returns, TaxAct could be a good choice, but be aware that some state functionality is limited.
Pros
  • Guided tax prep process
  • Ability to import information from prior years
  • Bundle your business and personal return to save
Cons
  • Audit support is limited
  • Not all state tax forms are supported
  • Free Customer Care service does not include tax advice

Why we picked it

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TaxAct sets itself apart by offering business owners the chance to save money by bundling their personal and business tax returns. But if you won’t have deductions for childcare, an HSA, owning a home or rental property or selling investments or a house, it may be cheaper not to bundle.

You can also streamline your tax prep process by taking advantage of the company’s ability to import information from prior returns and its step-by-step guidance while filing.

However, certain state forms may not be available. Check TaxAct’s website to see what forms are supported for the state you live in before signing up. Audit support is also limited compared to some competitors.

Learn more about TaxAct Self-Employed.

TaxSlayer Self-Employed: Best for included assistance from a tax expert

$67.95 + 44.95 per state filed

Yes, included in the package

Yes

Our verdict
TaxSlayer’s Self-Employed package includes advice from a tax expert, but pay careful attention to pricing because its fees can vary.
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 options catered to S-corps or C-corps
  • No offline version

Why we picked it

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TaxSlayer is unique in that expert tax advice is included in the Self-Employed package. Additionally, it has quite a few features aimed at making filing easier, such as the platform’s ability to auto-fill information and guided 1099 and Schedule C support. Plus, it has other features that may be uniquely beneficial to business owners, like quarterly estimated tax payment reminders.

But while TaxSlayer is a great option for freelancers and self-employed small business owners, S-Corps and C-corps may want to look elsewhere. Plus, the lack of an offline desktop version may be a hindrance to larger companies.

Learn more about Taxslayer Self-Employed.

FreeTaxUSA: Best for free federal filing options

$0 + $14.99 per state filed

Yes, as an add-on service

No

Our verdict
Federal filing is free with FreeTaxUSA, but you may miss some of the functionality that comes from more expensive providers.
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

Why we picked it

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If you want to file your federal return for free, FreeTaxUSA is likely going to be your best bet. Additional services, like filing your state return, audit support and unlimited ability to amend returns, do come at added fees with FreeTaxUSA, but they’re fairly affordable compared to most of its competitors.

At the same time, though, the service offerings FreeTaxUSA provides are not as robust as those of some of the more expensive providers. For instance, there is no mobile app, and while you can import information from W-2s, the same functionality doesn’t exist for 1099s.

Learn more about FreeTaxUSA.

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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 having a tax professional file your return for you.

Many of these platforms have functionality that makes it simple to file a business return, such as automatically importing W-2 and 1099 information, industry-specific deduction searches and audit support.

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How to compare small business tax software

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 services you need are included in that cost.
  • Features: Many platforms offer features aimed at making filing a return simpler, such as importing tax form information, providing a searchable database for 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 be able to do your taxes while on the go, select a platform that offers mobile app functionality.

Pros and cons of small business tax software

ProsCons

 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.

 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 to make mistakes or miss deductions

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 simply have to bring the tax pro any applicable tax forms and business information. They’ll likely ask you some questions along the way, but will do the heavy lifting of generating 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 going this route will save you money upfront, 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.

How we chose the best small business tax software

We reviewed 14 small business tax software platforms to determine the five best solutions overall. 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 available 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 to receive 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.

Best small business tax software summary