Small business owners can prepare their own tax returns for a fraction of the cost of tax professionals as most CPAs charge a minimum of $500 for a business return. Below, we’ve identified the best tax software for small businesses based on price, features, and ease of use.
- TaxAct: Best overall small business tax software to prepare corporate and partnership returns
- TurboTax: Best for QuickBooks Solopreneur users seeking help from tax pros
- H&R Block: Best inexpensive desktop software for Schedule C businesses
- Block Advisors: Best for having your business returns completed by a tax pro for a low price
- FreeTaxUSA: Best free business tax software for freelancers with affordable access to tax advice
- BoomTax: Best cloud software for filing year-end information returns like W-2s, 1099s, and 1095s
- Bench: Best full-service business return preparation with bookkeeping
In line with the Fit Small Business Editorial Policy, we are committed to delivering trustworthy answers to your small business questions, and we do this by doing thorough research and using our first-hand experience with the platforms. We ensure our best answers are founded on the basis of accuracy, clarity, authority, objectivity, and accessibility.
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Best Tax Software for Small Businesses: Quick Comparison
DIY Return With Schedule C (Federal) | DIY Return With Schedule C (State) | Assisted Federal | Assisted State | Full-service Federal | Full-service State | |
|---|---|---|---|---|---|---|
 | $0 to $99.99 | $59.99 | Additional $59.99 | $59.99 | ✕ | ✕ |
 | $129 | $64 | $219 | $69 | $469 | $69 |
 | $115 | $49 | Included | Included | ✕ | ✕ |
 | $115 | $49 | Included | Included | $203 | $70 |
 | $0 | $14.99 | $49.99 | $49.99 | ✕ | ✕ |
 | ✕ | ✕ | ✕ | ✕ | ✕ | ✕ |
 | ✕ | ✕ | ✕ | ✕ | $499 per month | Included with Premium plan |
Schedule C Business Income & Loss | S-corp & Partnership Returns | Guidance From a Tax Pro | Deduction Maximizer | Data Import | Audit Guidance/Defense | |
|---|---|---|---|---|---|---|
| ✓ | ✓ | ✕ | ✓ | ✓ | ✓ |
| ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| ✓ | ✕ | ✓ | ✕ | ✓ | ✓ |
| ✓ | ✓ | ✓ | ✕ | ✓ | ✓ |
| ✓ | ✕ | ✓ | ✕ | ✕ | ✓ |
| ✕ | ✕ | ✕ | ✕ | ✓ | ✕ |
| ✓ | ✓ | ✓ | ✕ | ✓ | ✕ |
TaxAct: Best Overall Small Business Tax Software for Preparing Corporate and Partnership Returns
Pros
- Can prepare Forms 1040, 1120, 1120S, and 1065 online
- Can import income and expense accounts from any software as CSV file
- Can save time by importing stock transactions
Cons
- Can be expensive if you have multiple businesses since price includes only one return
- Lacks special cryptocurrency support
- Lacks tax pro assistance for business returns
Online
- Free: $0 for federal forms plus $39.99 per state return
- Deluxe: $49.99 for federal forms plus $59.99 per state return
- Premier: $79.99 for federal forms plus $59.99 per state return
- Self-employed: $99.99 for federal forms plus $59.99 per state return
- Partnerships: $139.99 for federal forms plus $54.99 per state return
- S-corps and C-corps: $159.99 for federal forms plus $54.99 per state return
Add-on: Xpert Assist for $59.99 for individual plans; access unlimited help from tax experts over the phone and request a quick review of your return before filing
Desktop
- Basic: $44.99 for federal forms plus $60 per state return
- Deluxe: $139.99 for federal forms and includes one state return
- Premier: $149.99 for federal forms and includes one state return
- Self-employed: $159.99 for federal forms and includes one state return
All plans include five federal e-files and free account and technical support.
Bundles
- Partnership & Home Bundle: $259.99 for Form 1065 federal and state e-files and up to five 1040 federal and state e-files
- S-corporations/C-corporations & Home Bundle: $279.99 for Form 1120 or 1120S federal and state e-files and up to five 1040 federal and state e-files
- Tax-exempt Orgs & Home Bundle: $234.99 for Form 990 federal and state e-files and up to five 1040 federal and state e-files
All plans are available online or as a download—except the Tax-exempt Orgs & Home Bundle, which is only available to download.
TaxAct is our overall best tax software for small business owners because you can prepare both individual returns and business returns using its online program. It’s the only software we reviewed that offers online preparation of both individual returns (Form 1040) and business returns (Form 1120, Form 1120S, and Form 1065). It is less expensive than its closest competitor, TurboTax, and it comes with useful tools like a tax estimator and tax planner.
The biggest drawback to the online program is that the price includes only one return, whereas desktop programs can be used for multiple returns. For comparison, the typical C-corp, S-corp, or partnership owner will spend anywhere from $259.99 to $279.99 to prepare and file both their individual and business returns using TaxAct. Meanwhile, TurboTax lets you use its desktop software to file business returns with prices that start at $190 for DIY filing, $739 for assisted filing, and $1,749 for full-service filing.
TurboTax: Best Small Business Tax Software for QuickBooks Solopreneur Users Seeking Help From Tax Pros
Pros
Cons
- TurboTax Business is available for download only
- Costs $55 to $69 for each additional state return, depending on type of service
- Has more expensive DIY filing options than other similar programs
TurboTax Self-employed
- DIY: $129 federal and $64 per state
- Live Assisted: $219 Federal and $69 per state
- Full Service: Starting at $469 federal and $69 per state
QuickBooks Solopreneur Live Assisted Tax
Offered only to QuickBooks Solopreneur subscribers filing a Schedule C, Live Assisted Tax—powered by TurboTax—provides unlimited expert help filing self-employed taxes. The price is $20 a month, but it is currently discounted to $6 monthly for the first three months.
TurboTax Business: Best for C-corps, S-corps, and Partnerships
- Business (download only): $190 for federal forms plus $55 per state return, includes five federal e-files
- Live Assisted Business Available only in Alaska, Arizona, California, Colorado, Florida, Georgia, Illinois, Kansas, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, North Carolina, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, and Wyoming. : $739 for federal forms plus $64 per state return, includes unlimited expert help
- Full Service Business: $1,749 for federal forms plus $64 per state return; an expert will file your tax returns for you
TurboTax Live is our choice for small businesses, especially QuickBooks Solopreneur users, because of its year-round access to tax professionals. These tax pros aren’t only available to answer questions but will also do a line-by-line review of your tax return.
QuickBooks Solopreneur subscribers get access to Live Assisted Tax, which is available with live tax help and a final review of your tax return. You can also import Schedule C data from QuickBooks Desktop into TurboTax and will appreciate the ability to transfer financial data quickly to your tax forms.
One drawback is that online tax filing is available for Schedule C businesses only—if you are a partnership, C-corp, or S-corp, you’ll need to download the software. If online tax filing is important to you, we suggest TaxAct. Also, while TurboTax’s Full Service Business is available in all 50 states, Live Assisted Business is currently available only in 29 Available only in Alaska, Arizona, California, Colorado, Florida, Georgia, Illinois, Kansas, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, North Carolina, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, and Wyoming. . Block Advisors is a good option if you’re seeking affordable access to assistance with your business tax return but are located in a state TurboTax currently doesn’t serve.
H&R Block: Best Inexpensive Desktop Tax Software for Schedule C Businesses
Pros
- Includes up to five federal e-files in desktop software
- Can import your prior-year return from any tax software
- Offers free in-person audit support
- Provides access to tax professionals with all paid online plans
Cons
- Lacks cryptocurrency support
- Lacks live tax pros with desktop software
- Cannot access return from the mobile app
- Excludes full review of your return in the free tax pro assistance
H&R Block offers pricing for self-employed filing only. Business filers must work with Block Advisors, which is H&R Block’s outsourced bookkeeping and tax service.
Self-employed Tax Software
- Self-employed Online: $115, which includes a Schedule C, plus $49 per state return
- Premium & Business Desktop: $99, which includes a Schedule C and one state return
With H&R Block desktop software, you can prepare state and federal returns for Schedule C businesses for a low fee. For just $99, you can use H&R Block Premium & Business to prepare and e-file both your personal federal and state returns (Form 1040) and your Schedule C.
The downside of this desktop software is that it doesn’t include assistance from a live tax professional, which is available with the online program for individuals. If your business operates as a partnership, S-corp, or C-corp, you’ll want to check out Block Advisors, as it provides both personalized tax support and the ability to file your return yourself using its desktop software.
Block Advisors: Best for Having Your Business Returns Completed By a Tax Pro for a Low Price
Pros
- Offers free unlimited live expert help
- Provides access to a financial professional near your home or business
- Can tailor a package that includes taxes, bookkeeping, and payroll support
- Can import info from other tax preparers or pull directly from prior year’s tax return
Cons
- Can’t file unlimited amended returns
- Lacks desktop software
- Lacks mobile app
- DIY Self-employed: Starts at $115 for federal tax form including Schedule C plus $49 for each state tax return; includes live expert help and AI Tax Assist
- Full-service Self-employed: Starts at $203 for federal tax form including Schedule C plus $70 per state tax return to file with a tax pro
- DIY S-corp, C-corp, and Partnership: Starts at $99, includes one state return
- Full-service S-corp, C-corp, and Partnership: Starts at $279 to work with a tax pro
- Bookkeeping:
- Self-serve plan starts at $39 per month
- Full-service plan starts at $175 per month
- Premium plan starts at $299 per month
- Payroll:
- Self-employed services start at $59 per month
- Plus plan starts at $79 per month plus $10 per employee per pay run,
- Premium plan starts at $140 per month plus $10 per employee, per pay run; includes employee benefits and HR assistance
H&R Block is known for its tax preparation services—and it offers financial support all year round with Block Advisors. Focusing specifically on small businesses and self-employed individuals, Block Advisors allows you to either partially or fully outsource not only your tax prep but also your bookkeeping and payroll.
It is affordable and has plans for different budgets, depending on how involved you want to be. You can work with your financial expert on the phone or online and can customize a package that will fit your needs. However, the provider lacks a mobile app that lets you file your return and check its status, so if this feature is important to you (and you don’t need to file a business tax return), we suggest H&R Block. And if you’re seeking cryptocurrency support, TurboTax is a good option.
FreeTaxUSA: Best Free Small Business Tax Software for Freelancers With Affordable Access to Tax Advice
Pros
- Can import your prior return from TurboTax, H&R Block, or TaxAct
- Supports all major individual tax forms for free without the need to upgrade
- Offers free federal return and inexpensive state returns
- Can input data through an interview process, similar to paid programs
Cons
- Can’t import income and expenses or stock transactions
- Has very limited customer support options for free customers
- Doesn’t support partnership or corporate tax return preparation
- Can’t import W-2s or 1099s
Free to file federal Form 1040 individual return with Schedule C, plus $14.99 to file each state. Filing prior-year federal returns is also free, and state returns are $17.99 each.
Support Plans:
- Deluxe: $7.99 for priority support with live chat, unlimited amended returns, and audit assist
- Pro Support: $49.99, which includes all Deluxe features plus personal tax advice, access to CPA or EA, phone support, and live screen sharing
FreeTaxUSA is ideal for self-employed workers looking for free tax software to file their individual federal tax returns, including Schedule C. It isn’t a scaled-down version of a paid subscription, as it’s a full-featured tax preparation software program that includes all forms that most self-employed taxpayers will need. It also now offers Pro Support for $49.99, which provides tax advice from CPAs and EAs. You can file with help from a pro and receive access to a tax expert via phone support.
However, FreeTaxUSA cannot prepare C-corp, S-corp, or partnership returns. If this is what you’re seeking, we recommend our best overall small business tax software, TaxAct. You can see how the software stacks up against TaxAct in our comparison of FreeTaxUSA vs TaxAct.
BoomTax: Best Cloud Software for Filing Year-end Information Returns Like W-2s, 1099s & 1095s
Pros
Cons
- Doesn’t support income tax filing
- Lacks desktop software
- Lacks mobile app
- Has no free trial
Pay-as-you-go for 1099 and W-2 forms
First 12 forms cost $39, and then pricing shifts to per form.
ACA filing
- Premium: $349 per company for up to 150 employees, email and phone support, and unlimited corrections; state reporting for Washington, D.C., New Jersey, Rhode Island, and California.
- Enterprise: Custom quote; includes unlimited companies and employees, priority email and phone support, and unlimited corrections.
Optional fees
- ACA Form Mailing: $1.99 per form
- ACA Form E-Delivery: 50 cents per form
- 1099 Form Mailing: $1.99 per form
- 1099 or W-2 Form E-Delivery: 50 cents per form
- W-2 Form Mailing: $1.99 per form
Although BoomTax doesn’t allow for income tax filing or payroll processing, it’s an affordable and easy way to process 1099s, W-2s, and other forms related to ACA filing. Its step-by-step approach allows you to complete forms 1099-NEC, 1099-MISC, 1099-DIV, 1099-INT, 1094-C, 1095-C, 1094-B, and 1095-B.
If you’re seeking inexpensive tax software that can process 1099s and also tax filing for Schedule C businesses, we suggest H&R Block.
Bench: Best Full-service Business Return Preparation with Bookkeeping
Pros
- Supports unlimited users
- Includes unlimited year-round tax support
- Provides a licensed pro to prepare and file your return
- Offers catch-up bookkeeping services
Cons
- Lacks mobile app for Android
- Only offers tax preparation and filing if you sign up for bookkeeping
- Operates on proprietary software that doesn’t integrate with other accounting software like QuickBooks
Bench offers the preparation and filing of business returns as part of its Premium plan for $499 per month or $4,788 per year if billed annually. Included in this subscription are unlimited one-on-one income tax advisory services and tax strategy planning, which are available year-round.
Add-ons:
- Individual filing for one partner or shareholder: $59 per month (billed annually)
- Historical bookkeeping: Starts at $199 per month
Bench offers a free trial, which includes a free prior month of bookkeeping and financial statements.
We selected Bench as the best for full-service business return preparation with bookkeeping because of its affordability and wide range of services. You can choose from its Essential (bookkeeping-only) plan or Premium plan—bookkeeping with tax services that include preparation and filing of your Schedule C, corporate, or partnership returns. Also included are unlimited year-round tax advice and strategic planning services as well as tax deadline reminders and compliance support.
One drawback to Bench is that it’s not a DIY tax service—your only choice for having a tax return filed is through its full-service offering. It’s also more expensive than other providers, but it offers year-round bookkeeping and tax support. If you’d like bookkeeping services without the tax support, we recommend Merritt Bookkeeping for a great value.
Another drawback is that Bench also uses its own proprietary accounting software, so you won’t be able to integrate it with software like QuickBooks or Xero. If that’s something you’re looking for, we suggest tax software like TurboTax.
How We Evaluated the Best Tax Software for Small Business
When evaluating the best business tax software, we considered the needs of small businesses needing to prepare returns for sole proprietors, corporations, and partnerships. Of major concern are price and features—such as importing data, audit support and representation, document management, accuracy guarantees, and unlimited assistance from tax experts.
Based on the needs of businesses that file partnership returns, we used the following criteria to evaluate the best business tax software:
- Pricing: We checked how much the platform costs and if assisted or full-service support is included. We also considered the amount you’ll need to pay for both federal and state returns.
- Features: The software should have all of the features expected of business tax software, including automatic import, deduction maximizer, and e-file management.
- Ease of use: We considered how efficient it is to enter data into worksheets and how easy it is to review your tax forms. We also reviewed the availability of tax support and whether the software provider has an unlimited option as well as tax advice and guidance.
- Data import and accounting software integration: We looked into whether the software can automate some of the data entry, including importing data from QuickBooks or Excel and extracting data from source documents using scan-and-fill technology.
How to Choose the Best Small Business Tax Software
When deciding on business tax software, you should consider the other business systems your small business requires and try to select a combination of tools that best fits your needs. To choose the best small business tax software, you need to understand which returns you must file. How your business is organized for tax purposes will determine the required returns to file.
Filing Requirements
Self-employed taxpayers, sole proprietorships, and freelancers are treated the same for tax purposes. These businesses must report their income on Schedule C of the individual tax return, Form 1040. There’s no separate business tax return.
C-corps must report their business income and tax liability on a corporate tax return, Form 1120. All business income is taxed on the corporate return and has no effect on the individual tax return unless the corporation pays dividends to the owners.
Keep reading: How to Fill Out Form 1120
S-corps and partnerships are required to report their business income on a federal tax return filed separately from the owner’s return.
- S-corps must file a Form 1120S
- Partnerships must file a Form 1065
Both Form 1120S and Form 1065 include a Schedule K-1, which shows each owner’s share of the business income. The income on Schedule K-1 is commonly referred to as flow-through income and reported on the owner’s individual return, Form 1040, Schedule E.
An LLC may be treated as a sole proprietorship, C-corp, S-corp, or partnership.
Related read: Small Business LLC Taxes & LLC Tax Returns
Costs & Features
In addition to federal returns, most individuals and businesses must file state returns. When comparing the cost of small business tax software, be sure to include the cost for all your required returns and note that software can only produce accurate returns when you enter accurate information. Most small business tax programs now include the option to consult with a live tax professional.
The key features you should look for in small business tax software are as follows:
- Cost: Owners of corporations and partnerships generally require at least four returns, and sole proprietors require at least two returns.
- Support for tax forms: The tax software can prepare business entity returns for S-corps (Form 1120S), C-corps (Form 1120), partnerships (Form 1065), sole proprietors (Form 1040, Schedule C), and rental property (Form 1040, Schedule E).
- Data import: Tax software can import data from bookkeeping software and financial institutions.
- Deduction finder: The tax software helps business owners find deductions for their industry and pick the best way to deduct depreciation and car expenses.
- Error checking: The tax software must have diagnostics to check for mistakes and potentially missing data.
- Live tax professionals: Consultation and perhaps even a review by a tax professional are critical for complicated returns. Simply clearing all the issues from the error check doesn’t guarantee the return is correct. Preferably, tax professionals should be either CPAs, EAs, or lawyers, instead of somebody trained by the software provider.
- Ease of use: The tax software must be relatively easy to learn and navigate.
- Customer support and help resources: The tax software must provide an online knowledge base and customer support by phone or email.
Frequently Asked Questions (FAQs)
H&R Block uses its own proprietary software to prepare taxes for both individuals and businesses. It also offers both an online and desktop version of its software for those who want to prepare their own taxes.
TurboTax offers two products to serve small business owners. TurboTax Home & Business is designed for sole proprietors and 1099 contractors, while TurboTax Business helps you prepare taxes for corporations, partnerships, and LLCs.
Yes, you can file a federal tax return for free and state tax returns for $14.99.
The cost of small business tax software can vary depending on the specific software, the features it offers, and the forms that you need to file. On average, prices will range from $50 to $200 monthly for a basic software package. More advanced packages with additional features such as real-time collaboration and data import/export capabilities can cost up to $500 or more monthly. Many software providers offer free trials so that you can test out the platform before committing to a purchase.
Common tax write-offs for small businesses include startup costs, business equipment and supplies, home office expenses, advertising and marketing, travel expenses, legal and professional fees, vehicle expenses, and employee benefits.
Bottom Line
You should consider your business needs when choosing the best small business tax software for preparing business and personal tax returns. If your business is a corporation or partnership, you need software that will prepare Form 1120, 1120S, or 1065—in addition to your personal Form 1040. You want a tool that will make it easy to transfer your accounting data, maximize your tax deductions, check for errors, provide unlimited customer support, and allow you to consult with a tax professional when you need it.
