The best business tax software depends first on the return you need to file. A freelancer reporting income on Schedule C has different requirements from an S corporation filing Form 1120-S or a partnership issuing Schedule K-1s.
TaxAct is my overall recommendation because it offers relatively affordable online filing for sole proprietors, partnerships, S corporations, and C corporations. However, TurboTax is the stronger choice when you want extensive expert assistance, while FreeTaxUSA is hard to beat for a straightforward Schedule C return on a tight budget. This guide also includes Block Advisors for business owners who would rather hand the work to a tax professional and BoomTax for companies that need to file W-2, 1099, or Affordable Care Act information returns.
| Provider | Best for | Starting price |
| TaxAct | Affordable online business return preparation | $109.99 federal |
| TurboTax | Business filing with extensive expert support | $229 federal |
| H&R Block | Low-cost downloadable personal and business filing | $115 |
| Block Advisors | Full-service filing by a tax professional | $250 plus $75 per state |
| FreeTaxUSA | Free federal Schedule C filing | $0 federal |
| BoomTax | W-2, 1099, and ACA information returns | Volume-based; ACA plans start at $349 |
Why you can trust Fit Small Business
How I evaluated the best business tax software
I evaluated each provider based on how well it serves its intended small business user and tax-filing scenario. My approach focused on practical buying factors, including supported return types, total filing costs, access to tax professionals, data-import options, filing safeguards, ease of use, and important product limitations.
- Supported tax returns: I checked whether each provider supports Schedule C, Form 1065, Form 1120-S, Form 1120, or information returns such as Forms W-2 and 1099.
- Total filing cost: I reviewed federal prices, state-return charges, e-filing fees, expert-help costs, and optional services that can materially increase the final price.
- Tax professional access: I distinguished basic technical support from actual tax advice, expert review, and full-service preparation.
- Data entry and imports: I considered prior-return imports, accounting data connections, spreadsheet uploads, and document-import tools that may reduce manual entry.
- Filing safeguards: I reviewed error checks, accuracy guarantees, audit support, return reviews, and the ability to amend or correct filings.
- Ease of use: I considered whether the filing workflow is appropriate for the product’s intended user, including the availability of online, desktop, mobile, virtual, and in-person options.
- Buyer limitations: I looked for restrictions involving entity types, operating systems, state filings, number of returns, and access to expert assistance.
- Quick comparison of the best tax software for small businesses
- Why TaxAct is my choice for affordable online business tax filing
- Why I recommend TurboTax for expert-guided business returns
- Why H&R Block works well for budget-friendly desktop filing
- Why Block Advisors is good for handing taxes to a professional
- Why FreeTaxUSA is my budget pick for Schedule C
- Why BoomTax works well for W-2, 1099, and ACA filing
- How to choose business tax software
- Frequently asked questions (FAQs)
Quick comparison of the best tax software for small businesses
| Software or service | Schedule C | Separate entity returns | Tax professional help | Filing format |
| TaxAct | ✓ | Forms 1065, 1120-S, and 1120 | Add-on or full service for select returns | Online and desktop |
| TurboTax | ✓ | Forms 1065 and 1120-S online; Form 1120 through desktop software | Expert Assist or Full Service | Online and desktop |
| H&R Block | ✓ | Corporate and partnership returns through Premium & Business | Separate from the desktop product | Desktop |
| Block Advisors | ✓ | Most common business entities | Return prepared by a tax professional | Virtual, in-office, or drop-off |
| FreeTaxUSA | ✓ | Does not prepare Forms 1065, 1120-S, or 1120 | Pro Support add-on for tax questions | Online |
| BoomTax | ✕ | Does not prepare income tax returns | Product and filing support | Cloud-based |
Why TaxAct is my choice for affordable online business tax filing
Why I recommend TurboTax for expert-guided business returns
Why H&R Block works well for budget-friendly desktop filing
Why Block Advisors is good for handing taxes to a professional
Why FreeTaxUSA is my budget pick for Schedule C
Why BoomTax works well for W-2, 1099, and ACA filing
How to choose business tax software
Start with the return your business must file. The wrong product remains the wrong product regardless of its price, customer rating, or list of deductions.
- Identify your tax classification — not merely your legal business name. An LLC may file as a disregarded entity, partnership, S corporation, or C corporation depending on its ownership and tax elections.
- Separate the business return from the owner’s return. Partnerships and S corporations generally file an entity return and issue K-1s that owners report on their individual returns. You may therefore need more than one software product.
- Calculate the complete filing cost. Add federal software, state programs, state e-filing, personal returns, expert assistance, audit support, and additional entities.
- Decide how much responsibility you want. DIY software guides the process, Expert Assist lets you prepare the return with professional help, and Full Service or Block Advisors delegates preparation to a tax professional.
- Check how your accounting data enters the return. A clean QuickBooks connection or spreadsheet import may save time, but it does not correct inaccurate or unreconciled books.
- Confirm state support before buying. Entity and state e-filing coverage can be narrower than federal coverage, particularly with downloadable products.
- Do not confuse information returns with income tax returns. Filing a 1099 for a contractor does not file your Schedule C, partnership, or corporation income tax return.
- Use a professional when the records or tax position are unclear. Ownership changes, multi-state activity, late elections, payroll problems, asset sales, and incomplete bookkeeping can make inexpensive DIY filing a costly gamble.
Match your business structure to the likely return
Business tax treatment | Common federal filing |
| Sole proprietor or single-member LLC with default treatment | Schedule C attached to Form 1040 |
| Partnership or multi-member LLC with default treatment | Form 1065 and Schedule K-1 |
| S corporation | Form 1120-S and Schedule K-1 |
| C corporation | Form 1120 |
| Employer paying employees | Forms W-2 and W-3 in addition to applicable income and payroll tax returns |
| Business paying qualifying contractors | Applicable Form 1099 information returns |
Your legal structure and tax election determine the forms you must file. When you are uncertain about your classification, verify it before purchasing tax software or entering the return.
Frequently asked questions (FAQs)
What software does H&R Block use?
H&R Block uses proprietary online and downloadable tax products. Small business owners filing through downloadable software can use Premium & Business, while those who want professional preparation can work through H&R Block or its small business-focused Block Advisors service.
Is there a TurboTax product for small businesses?
Yes. Sole proprietors can use TurboTax’s self-employed online or Home & Business desktop options. S corporations and partnerships can use TurboTax Expert Assist Business, Expert Full Service Business, or TurboTax Desktop Business. C corporations, trusts, and estates require TurboTax Desktop Business rather than its online business service.
Is FreeTaxUSA really free?
Federal filing is free, including Schedule C and other self-employment forms. A state return costs $15.99, and services such as live chat, Pro Support, and Audit Defense cost extra.
FreeTaxUSA does not prepare separate partnership, S corporation, or C corporation returns. Its free small business coverage refers primarily to business activity reported on an individual Form 1040.
How much does small business tax software cost?
DIY federal Schedule C filing ranges from free with FreeTaxUSA to around $100 or more with many paid providers. DIY entity-return software generally costs roughly $115 to $190 before state charges.
Expert-assisted and full-service preparation costs considerably more. Current starting prices range from $250 for Block Advisors professional preparation to more than $1,500 for certain TurboTax Full Service business returns.
Most business tax products charge per return or tax year rather than by the month. Prices frequently change during tax season, so verify the final federal, state, and service fees before purchasing.
Can I prepare my own business tax return?
You can prepare your own return when the software supports your required forms and you are confident that your accounting records and tax information are complete.
The decision becomes riskier when the business has multiple owners, several states, ownership changes, unusual transactions, late filings, payroll issues, or unreconciled books. In those situations, professional preparation may be worth more than the savings from DIY software.
What are potential tax write-offs for small businesses?
Potential deductions may include qualifying expenses for advertising, business insurance, professional services, supplies, equipment, software, travel, vehicles, home offices, employee benefits, and startup activities.
Whether an expense is deductible—and when or how it must be claimed—depends on the facts of the business and applicable tax rules. Tax software can guide data entry, but it cannot replace accurate records or professional judgment for an uncertain tax position.
What is the difference between tax software and 1099 software?
Income tax software prepares returns such as Schedule C, Form 1065, Form 1120-S, or Form 1120. Information-return software prepares forms that businesses issue or submit to report payments, wages, or health coverage, including Forms W-2, 1099, and 1095.
Some businesses need both. For example, a company may use BoomTax to file contractor 1099s and TaxAct or a tax professional to prepare its annual income tax return.
