5 Best Small Business Tax Software Providers for 2019

Small business owners can prepare their own tax returns for a fraction of the cost of tax professionals. We compared a dozen programs to identify the best small business tax software based on pricing, features, and ease of use. The best tax software for small business allows importing of QuickBooks data and automatic error checking.

Top 5 Tax Software Providers for Small Business for 2019

How We Evaluated the Best Tax Software for Small Business

Business owners need software that can prepare tax forms for their S corporation (S-corp), Limited Liability Corporation (LLC), or other business entity. Importing income and deductions from software such as QuickBooks or QuickBooks alternatives is important to owners and contractors. Tax software should also check for errors and provide customer support. Additionally, business owners need software to prepare their personal Form 1040 and state tax return.

Based on the needs and wants of small business owners, the key features we required in order for the tax software provider to make the final cut are:

• Support for Small Business Tax Forms: The tax software can prepare business entity returns such as S-corps and LLCs.
• Data Import: The tax software can import data from accounting software like Quicken and QuickBooks, as well as 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 Check and Audit Support: The tax software must have diagnostics to check for mistakes and potentially missing data. Even better is tax software that provides support from a real person in case your tax return gets audited.
• 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 provide customer support by phone or email.

We recommend H&R Block Premium and Business as the best overall small business tax software. In addition to including all of the features on our list, it has tax forms for all entities, including sole proprietors, S-corps, C-corps, partnerships, LLCs, and nonprofit organizations. H&R Block Premium and Business also includes in-person audit support at no additional charge.

H&R Block: Best Overall Small Business Tax Software

H&R Block is our top pick because it includes more features for the price than any other software on our list. For a one-time fee of $89.95, H&R Block Premium and Business is a lot less than TurboTax ($119.99). Unlike TurboTax Home and Business edition, which only works for sole props, H&R Block is ideal for S-corps, C-corps, LLCs, and nonprofit organizations.

The H&R Block Premium and Business edition is the best tax software for small business because of its attractive price, features, and customer support. The Premium and Business edition combines two software programs under a single price point, enabling customers to prepare both their business entity tax return and their personal tax return.

H&R Block Cost

H&R Block costs $89.95 for the Premium and Business edition versus $119.99 for TurboTax Home and Business edition. Similar to TurboTax Home and Business, H&R Block allows you to prepare up to five federal tax returns. The fee includes one state return; if you need to file returns in more than one state, it will cost $39.95 per state versus $44.99 for TurboTax, plus e-filing fees.

H&R Block Price & Filings by Edition

H&R Block Features

H&R Block has a Self-Employed edition that is very similar to TurboTax Home and Business, and they have a Premium and Business edition that goes well beyond what TurboTax includes. Both H&R Block editions allow you to prepare both your business and personal tax returns. Both editions allow sole proprietors to file Schedule C, but the Home and Business edition goes beyond Schedule C filers to include tax forms for corporations and nonprofit organizations.

H&R Block Premium & Business

H&R Block Premium and Business is ideal for any business entity, including sole proprietorships, S-corps, C-corps, LLCs, and nonprofit organizations. If you have employees or 1099 contractors, you can also file your payroll tax returns 940 and 941, and process annual forms like 1099-MISC and W-2. This edition includes more features than the Self-Employed edition and costs less at $89.95 versus $104.99 for Self-Employed.

If you use Quicken to keep your books or you used TurboTax to file your return last year, you can import data into H&R Block from these two programs. Like TurboTax Home and Business, H&R Block includes a deduction finder tool, a built-in error checking tool, and live customer support.

H&R Block Self-Employed

H&R Block Self-Employed does not have nearly as many features as the Premium and Business edition, but at $104.99, is $15 more than the Premium & Business edition! In terms of features, it matches up very closely to TurboTax Home & Business edition and costs less (TurboTax is $119.99).

We do not recommend the H&R Block Self-Employed edition because it is too limited. Even if you are a sole proprietor who needs to file Schedule C, you should choose H&R Block Premium and Business, which includes Schedule C, payroll tax forms, 1099 tax forms, and a whole lot more! Not to mention that you will save $15.

H&R Block Ease of Use

While H&R Block tax software is relatively easy, you need to complete all required information before moving on to the next screen. Similar to TurboTax, the software guides you through a series of questions and answers like an interview. Alternatively, you can quickly navigate to specific data areas of the program. Unlike TurboTax, the language used in H&R Block is a bit more complicated.

H&R Block Customer Support

When it comes to customer support, both H&R Block and TurboTax include a knowledge database and live customer support. H&R Block Premium and Business users have unlimited access to live, personal tax advice from H&R Block’s tax professionals at no additional cost. Unlike TurboTax, H&R Block also provides in-person audit support at no additional charge for the desktop versions of H&R Block software.

What H&R Block Is Missing

Based on our list of features above, H&R Block knocks it out of the park when it comes to features you would expect in a tax software. Whether you are a sole prop, corporation, or nonprofit organization, H&R Block Premium and Business edition has got you covered.

H&R Block Customer Reviews

Customers have voiced mixed reviews of H&R Block tax software. Some customers are pleased with the simplicity of the software and note that tech support has been exceptionally helpful. One customer said explanations are fairly poor in the state section. Several customers mentioned the Business version isn’t as user-friendly as the Premium version.

How to Get H&R Block

You can try the H&R Block tax software online for free. If you decide to buy, you can so online. The online version includes free in-person audit support, which means that someone at H&R Block will represent you in an IRS audit.

Visit H&R Block

TurboTax: Best Tax Software for QuickBooks Users

TurboTax is the best option for business owners who use QuickBooks desktop or QuickBooks Self-Employed to manage their books because you can import your data into TurboTax. Importing your data from QuickBooks will speed up the tax preparation process. Unfortunately, you cannot import data from QuickBooks Online into TurboTax. TurboTax Home and Business edition is ideal for sole props and costs $119.99 versus $169.99 for the TurboTax Business edition.

TurboTax Cost

TurboTax comes in two different versions, starting with at a one-time fee of $119.99. TurboTax Home and Business edition is ideal for Schedule C filers, and TurboTax Business edition is ideal for corporations, partnerships, and nonprofit organizations. The downside of using the Business edition is that you cannot file your personal tax return using the software, whereas TurboTax Home and Business allows you to file both your personal and business tax returns.

TurboTax Price & Filings by Edition

TurboTax Features

TurboTax provides two tax preparation software programs. TurboTax Business prepares business tax returns for entities such as S corporations, C corporations, Limited Liability Companies, and partnerships. TurboTax Self-Employed (online) or TurboTax Home and Business (desktop) prepare the personal tax return. TurboTax can import data from QuickBooks and has robust error checking and customer help.

TurboTax for Business

TurboTax Business Edition is best for owners of an S-corp, C-corp, multi-member LLC, Partnership, or Trust. The Business edition is desktop software for preparing business tax returns, whereas the Home and Business edition is ideal for Schedule C filers only. In addition, you can prepare information returns such as Form 1099-MISC in both editions, but preparing W-2 forms for employees is only available in the Business edition.

Features of TurboTax Business include:

• Business Entity Tax Forms: TurboTax Business can prepare tax returns for LLCs and Partnerships (Form 1065), S-corps (Form 1120-S), C-corps (Form 1120), and Trusts and Estates (Form 1041).
• Information Tax Returns: Business owners can prepare Form 1099-MISC for independent contractors and Form W-2 for employees.
• QuickBooks Data Import: TurboTax Business can import data from the desktop version of QuickBooks.
• Deduction Finder: TurboTax Business provides on-screen guidance for maximizing depreciation and other business deductions.
• Error Checking: Over 1,000 in-app diagnostics to identify errors and mistakes.
• Desktop Software: TurboTax Business is available by download or via CD for the Windows operating system.

TurboTax for Self-Employed Persons

TurboTax Self-Employed Edition can prepare personal Form 1040 and state tax returns, including Schedule C (for self-employment income) and Schedule E (for income from a business entity). TurboTax Self-Employed comes with a subscription to QuickBooks Self-Employed at no additional cost. Sole proprietors can prepare Form 1099-MISC for their independent contractors using TurboTax Self-Employed.

Features of TurboTax Self-Employed include:

• Personal Tax Returns: Prepare one federal 1040 and state tax return.
• Forms for Entrepreneurs: Prepare Schedule C and Schedule E.
• Information Returns: Prepare Form 1099-MISC for independent contractors and Form W-2 for employees.
• Accounting Software: Easily transfer data from QuickBooks Self-Employed to TurboTax to save time.
• 1099 Data Import: Can pull in investment data from participating financial institutions so you don’t have to key in data from Forms 1099-B, 1099-DIV, 1099-INT, 1099-OID, and 1099-R.
• Depreciation: TurboTax helps you figure out the best depreciation method for equipment, machinery, and other fixed assets.
• Error Checking: TurboTax checks tax returns for errors.
• Online Software: TurboTax Self-Employed is online software, accessed remotely through a web browser.

TurboTax Home & Business

TurboTax Home and Business is recommended for Schedule C filers. Unlike TurboTax Business, you can file both your personal and Schedule C returns together, whereas the Business edition only allows you to file your business tax return. With TurboTax Home and Business, users can prepare up to five tax returns.

Features of TurboTax Home and Business include:

• Personal Tax Returns: Prepare up to five federal 1040 and state tax returns.
• Forms for Entrepreneurs: Prepare Schedule C and Schedule E.
• Information Returns: Prepare Form 1099-MISC for independent contractors and Form W-2 for employees.
• 1099 Data Import: Can pull in investment data from participating financial institutions so you don’t have to key in data from Forms 1099-B, 1099-DIV, 1099-INT, 1099-OID, and 1099-R.
• Depreciation: TurboTax helps you figure out the best depreciation method for equipment, machinery, and other fixed assets.
• Error Checking: TurboTax checks tax returns for errors.
• Online Software: TurboTax Home and Business is desktop software for Windows and Mac.

TurboTax Ease of Use

Similar to H&R Block, TurboTax is relatively easy to use. Users can navigate the software in multiple ways, such as using interview-style questions and answers to move through major sections of the software. Alternatively, users can navigate directly to data input screens. Users can import business income and expenses from QuickBooks Desktop or QuickBooks Self-Employed. Investment data can also be imported from financial institutions.

TurboTax Customer Support

Similar to H&R Block, TurboTax provides helpful in-app guidance, an online knowledge base, and free telephone support from customer service. For an additional fee, users can have a certified public accountant or enrolled agent review their tax return before filing through the TurboTax Live feature.

What TurboTax Is Missing

One of the downsides of TurboTax is if you are a corporation, partnership, or nonprofit organization, you must purchase two tax software programs: TurboTax Business to complete your business tax return and another software, such as TurboTax Home and Business, to complete your personal tax return. Instead, you should go with H&R Block Home and Business, which allows you to complete both your business and personal tax returns with the same program.

TurboTax Customer Reviews

Customers have left mixed reviews of TurboTax tax software. Several users complain that the Business version cannot successfully import data from QuickBooks Online, and the Business version doesn’t work on a Mac. Unfortunately, you can’t import data from QuickBooks Online, but you can import from QuickBooks Self-Employed or QuickBooks desktop. In addition, the Business version is only compatible with a PC, not Mac. On the plus side, several users say TurboTax is easy to use, and provides a checklist for preparing business returns.

How to Get TurboTax

You can get the online and desktop versions from the TurboTax website. For the online software, you can get started for free and pay when you are ready to file. You can also easily purchase the desktop version of TurboTax for Business online and then download it to your computer.

Visit TurboTax

TaxAct: Best Tax Software for Freelancers Who Need an Affordable Solution

TaxAct is ideal for freelancers because it is significantly less expensive than TurboTax Home and Business. TaxAct Self-Employed is a one-time fee of $49.95 versus $119.99 for TurboTax Home and Business. The primary difference between TaxAct Self-Employed and TurboTax Home and Business is you can only file one federal tax return with TaxAct versus five tax returns with TurboTax.

TaxAct Cost

Both editions of TaxAct are significantly less than TurboTax and H&R Block. TaxAct Self-Employed is a one-time fee of $49.95 versus $119.99 for TurboTax Self-Employed and $104.00 for H&R Block Self-Employed. The primary reason why TaxAct costs less is because you can file only one federal tax return versus five federal returns in both TurboTax and H&R Block.

TaxAct Price & Filings by Edition

TaxAct Features

TaxAct Business edition comes in five editions: S Corporation, C Corporation, Partnership, Estates and Trust, and Tax-Exempt Organizations. Each of these business tax software editions is available as online software or as downloadable desktop software. TaxAct personal tax software for business owners comes in two varieties: Self Employed+ (online software) and Self-Employed (desktop software).

TaxAct Self-Employed+

TaxAct Self Employed+ is an online tax software that is ideal for freelancers. It costs $49.95, and you can file both federal and state tax returns for your business and your personal taxes. Unlike TurboTax Home and Business and H&R Block Self-Employed, which allow you to file up to five federal tax returns, you can only file one federal tax return in TaxAct. If you are a corporation, partnership, or nonprofit organization, you need to choose the Business edition.

TaxAct Business

TaxAct Business edition is similar to the TurboTax Business and H&R Block Business editions. You can file tax returns for sole proprietors, corporations, partnerships, and nonprofit organizations. Unlike H&R Block Business edition, which allows you to file both your business and personal tax returns, you cannot file your personal tax return with TaxAct Business edition.

TaxAct Ease of Use

TaxAct is relatively easy to use. Similar to TurboTax and H&R Block, TaxAct has an interview mode that will allow you to respond to questions. In addition, you can also switch to forms mode and go directly to the section you would like to complete. The user interface is not as polished as TurboTax, and, unfortunately, there is no easy way to skip questions that don’t apply to you.

TaxAct Customer Support

Similar to its competitors, TaxAct provides free, unlimited telephone and email support. Support is available seven days a week during tax season, and during regular business hours in the off-season. TaxAct also has a searchable online knowledge base.

What TaxAct Is Missing

Unlike H&R Block Business, TaxAct does not prepare information returns such as Form 1099-MISC for contractors or Form W-2 for employees. Unlike TurboTax Home and Business, TaxAct cannot import data directly from QuickBooks. Finally, TaxAct does not offer in-person audit support like H&R Block, and TaxAct does not offer a thorough review by a tax professional like H&R Block and TurboTax offer.

TaxAct Customer Reviews

Customers have left mixed reviews of TaxAct’s tax software. Several customers complain that customer support is hard to reach by telephone. Another customer said the IRS never got a copy of her extension, even though TaxAct provided her with confirmation. Customers like the fact that TaxAct is affordable and easy to use.

How to Get TaxAct

You can purchase all versions of TaxAct software online. You can get started on your tax return for free with the online version of TaxAct and pay when you are ready to file. The desktop software comes with a money back guarantee if you return the product within 30 days of purchase and haven’t printed or e-filed your tax returns.

Visit TaxAct

TaxSlayer: Best Tax Software for Sole Proprietors

TaxSlayer is ideal for self-employed persons who need to file Schedule C. With TaxSlayer Self-Employed, users can prepare their personal 1040 and Schedule C forms for a starting cost of $47.00. However, if you are a corporation, partnership, or nonprofit organization, you cannot use TaxSlayer to file your business tax return. TaxSlayer Self-Employed features priority customer support, a simple interface, guidance for deductions, and audit assistance.

TaxSlayer Cost

TaxSlayer Self-Employed costs a lot less than many of its competitors. At a cost of $47, it is less than one-third of the cost of TurboTax Home and Business ($119.99) and H&R Block Self-Employed ($104.99). Similar to TaxAct, you can only file one federal tax return with TaxSlayer versus five with H&R Block and TurboTax.

TaxSlayer Price & Filings by Edition

TaxSlayer Features

TaxSlayer is online tax software for preparing personal tax returns (Form 1040 and related schedules). One feature unique to TaxSlayer is the ability to prepare tax returns for previous years 2015, 2016, and 2017. Like H&R Block Self-Employed, TaxSlayer allows Schedule C filers to complete all of the necessary tax forms required of a sole proprietor.

Features of TaxSlayer Self-Employed include:

• Personal Tax Forms: Prepare Form 1040, Schedule C (self-employment), Schedule E (rental properties), Schedule F (farm business), and other personal forms.
• Data Import: TaxSlayer can extract basic information (such as name, address, Social Security number) if you upload a PDF of a previous tax return.
• Audit Assistance: TaxSlayer provides help if your tax return is audited. However, audit assistance is not available for state returns or federal tax returns with Schedule C, income from Schedule K-1, or Form 2555.
• Online Software: TaxSlayer is available only as web-based software.

TaxSlayer Ease of Use

TaxSlayer’s online tax software is easy enough to use. Like H&R Block and other competitors, each major section of the software has a menu where users can drill down to specific data input areas. Users can also jump to a specific data entry section by entering a form number in the search box, or clicking a section name from the navigation panel.

TaxSlayer Customer Support

Similar to its competitors, TaxSlayer customers get access to seasoned tax professionals who answer questions via chat, telephone, or email. TaxSlayer also has an online knowledge base you can search for help. Unlike H&R Block, TaxSlayer’s audit assistance does not apply to Schedule C filers and business owners with pass-through income reported on Schedule K-1.

What TaxSlayer Is Missing

When compared to H&R Block, TaxSlayer is missing several features. Unlike H&R Block Business and TurboTax business, you cannot file a corporation, partnership, or nonprofit tax return with TaxSlayer. TaxSlayer does not integrate with accounting software like TurboTax does. Finally, TaxSlayer does not offer the option to have a tax professional or CPA review your tax return prior to filing it, as TurboTax does.

TaxSlayer Customer Reviews

Customers have left positive reviews of TaxSlayer’s tax software. Customers say TaxSlayer is ideal for beginners, as the user interface is well organized and it takes less time to find where to enter expenses. Some customers experienced problems in which TaxSlayer did not transfer all federal data into a state return, resulting in an incomplete state return.

How to Get TaxSlayer

You can purchase all versions of TaxSlayer online. You can get started on your tax return for free with the online version of TaxSlayer and pay when you are ready to file. Unfortunately, any fees paid to TaxSlayer are non-refundable.

Visit TaxSlayer

e-smart tax: Best Tax Software for Sole Proprietors Who Own Rental Property

e-smart tax is functional online tax software for self-employed business owners who own rental property. Similar to TaxSlayer, you cannot file corporate, partnership, or nonprofit tax returns with e-smart tax.

e-smart tax Cost

At $54.95, e-smart Premium edition is a little more than TaxAct Self-Employed ($49.95) but a whole lot less than H&R Block Self-Employed ($104.99) and TurboTax Home and Business ($119.99). However, you can only file one federal tax return with e-smart tax premium versus five federal tax returns in H&R Block and TurboTax editions.

e-smart tax Price & Filings by Edition

e-smart tax Features

e-smart tax provides basic features for preparing personal tax returns (Form 1040). e-smart tax supports the preparation of forms needed by sole proprietors and rental property owners. Unlike other tax software, e-smart tax cannot import data from QuickBooks or other financial software, and cannot download investment data from financial institutions.

Features of e-smart tax Premium include:

• Personal Tax Forms: Prepare Form 1040, Schedule C (self-employment), Schedule E (rental properties), Schedule F (farm business), and other personal forms.
• Data Import: Download and import Form W-2 wage data from participating employers.
• Deduction Finder: e-smart tax reviews whether you are eligible for tax credits and deductions.
• Audit Support: e-smart tax will meet with you, help you prepare for the audit, and explain how the tax return was prepared.
• Online Software: e-smart tax is available only as web-based software.

e-smart tax Ease of Use

e-smart tax is relatively straightforward software. With an interview-based interface similar to H&R Block and TurboTax, users navigate through a series of screens that ask questions and gather the relevant information. e-smart tax’s user interface has good on-screen explanations, although some descriptions are a bit wordy and could be clearer.

e-smart tax Customer Support

Like its competitors, e-smart tax provides customer support via telephone, chat, e-mail, and social media. e-smart tax also provides answers to frequently asked questions on their website. Phone support is available extended hours (until midnight Eastern) during tax season, which is later than many other tax software companies.

What e-smart tax Is Missing

Similar to TaxSlayer, e-smart tax does not prepare returns for S-corps and other business entities. In addition, e-smart tax cannot import data from accounting software like QuickBooks or download investment data from financial institutions. Finally, e-smart tax does not have the option to have a tax professional review your return, as TurboTax offers.

e-smart tax Customer Reviews

Customers have mixed reviews of e-smart tax software. Some customers report that customer service representatives are very helpful and friendly, while others experienced difficulty reaching a support person. Several customers liked e-smart tax’s clear navigation and user interface. Several customers experienced problems with e-filing and direct deposit, despite double-checking their entries prior to filing.

How to Get e-smart tax

Since payment is not required until you are ready to file your tax return, you can try e-smart tax software before you buy it. e-smart tax provides a money back guarantee, which means you have nothing to lose.

Visit e-smart tax

Bottom Line

Small business owners should carefully consider their needs when choosing tax software for preparing their business and personal tax returns. You want a software that will make it easy to transfer your accounting data, maximize your tax deductions, check for errors, and provide unlimited customer support when you need it.

We recommend H&R Block Premium and Business because it allows you to file both your personal and business tax returns in one program, and you can prepare payroll tax returns and provide employees and contractors with W-2 and 1099 forms at the end of the year.

Visit H&R Block