Small business owners can save significantly by preparing their own returns instead of paying a CPA’s typical $500-plus minimum. I recommend using one of the best small business tax software options, which makes filing faster and more manageable with intuitive platforms, knowledgeable customer support, and tools like tax calculators, accuracy guarantees, deduction maximizers, and mobile apps. Below, I break down 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 small business owners who want expert-backed, low-stress tax filing
- H&R Block: Best inexpensive desktop software for Schedule C businesses
- Block Advisors: Best for affordable prep by a tax pro
- FreeTaxUSA: Best free business tax software for freelancers with affordable access to tax advice
- BoomTax: Best cloud software for information returns
I evaluated real estate accounting software using a weighted rubric that reflects the needs of landlords, real estate agents, investors, and property managers.
- Pricing (10%): I considered the cost for one, three, and five users, free trials or money-back guarantees, monthly plan availability, and discounts for new customers.
- Accounting features (25%): I reviewed whether each platform supports double-entry accounting, chart of accounts customization, multiple users, vendor and customer records, unpaid bill tracking, invoice creation, recurring invoices, check printing, bank connections, bank reconciliation, balance sheets, profit and loss statements, A/R and A/P aging, general ledger reports, trial balance reports, adjusting journal entries, and accountant access.
- Real estate-specific features (20%): I evaluated whether the software can separate profit and loss by property or sale, track vehicle mileage, allocate common area expenses, receive online payments, provide a tenant portal, and manage maintenance workflows.
- Customer support (15%): I considered overall support availability, formal training or onboarding, outbound phone support, inbound phone support, chatbot support, live chat, email support, user communities, self-help resources, and the availability of independent bookkeepers familiar with the platform.
- Ease of use (20%): I reviewed user feedback related to usability, dashboard readability, dashboard customization, interface design, whether users can open new transactions from the dashboard, overall ease of use, cloud-based access, and Mac compatibility.
File your taxes with confidence using TurboTax. Start for free, follow guided steps, and get your return done right. |
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Quick comparison of the best tax software for small businesses
TaxAct: Overall best small business tax software for corporate and partnership returns
Pros
- Can prepare Forms 1040, 1120, 1120S, and 1065 online
- Lets you import income and expense accounts from any software as a CSV file
- Can save time by importing stock transactions
Cons
- Can be expensive if you have multiple businesses, sincethe price includes only one return
- Lacks special cryptocurrency support
- Lacks tax pro assistance for business returns
- Doesn’t sync its proprietary software with other popular accounting software
It’s the only software I 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 includes useful tools such as a tax estimator and a tax planner.
Standout features
- Accuracy and maximum refund guarantee: TaxAct backs its calculations with a guarantee that reimburses your software costs and covers any difference in refund or tax liability — plus penalties or interest — if an error caused by its team results in a worse outcome.
- Deduction maximizer: A guided, question-and-answer workflow walks me through my return step by step while actively surfacing deductions I might otherwise miss, including common write-offs for self-employed filers.
- Tax calculator and planning tools: Built-in calculators let me run “what-if” scenarios, project changes to my return, and estimate my tax liability for the current year or future years.
- Flexible data import: I can import last year’s return as a PDF, even if it was prepared with another tax software, making switching platforms much easier.
- Unlimited access to tax experts (Xpert Help): TaxAct Xpert Help provides unlimited, one-on-one access to CPAs and other tax professionals throughout the filing process, so I can get answers whenever questions come up.
- Online filing for individual and business returns: Unlike most competitors, TaxAct supports fully online preparation for both individual returns (Form 1040) and major business returns, including Forms 1120, 1120S, and 1065.
TurboTax: Best for small business owners who want expert-backed, low-stress tax filing
Pros
- Unlimited, on-demand access to small business tax experts
- Option to hand off your entire return to an expert (full-service filing)
- Industry-matched tax pros help reduce missed deductions
- Strong guarantees around accuracy, maximum savings, and audit support
- Seamless QuickBooks integration for faster Schedule C prep
Cons
- Is available for download only
- Is pricey with an additional price for each additional state return, depending on the type of service
- Has more expensive DIY filing options than similar programs
Pricing | TurboTax Self-employed
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Mobile app | iOS and Android |
Tax calculator | ✓ |
Accuracy guarantee | ✓ |
Cryptocurrency support | ✓ |
Deduction maximizer | ✓ |
Data import | ✓ |
Audit guidance or defense | ✓ |
Average user reviews | Most users endorse the product and particularly appreciate the interview-style format of assistance in finding deductions and the in-product support. |
TurboTax makes business taxes feel manageable without forcing you to do them alone. You get step-by-step, software-guided filing plus unlimited access to real small business tax experts, with the option to hand off your entire return if you want full-service help. Industry-matched experts, extended tax-season availability, and strong accuracy guarantees combine to reduce stress and lower the risk of costly mistakes.
Standout features
- Deduction maximizer: TurboTax searches more than 350 deductions and credits to help ensure you don’t miss opportunities to maximize your refund, with step-by-step guidance on turning investments and expenses into tax breaks.
- TurboTax Live expert assistance: I can choose between on-demand expert advice or full-service tax preparation, where a tax professional prepares and files my return for me.
- Mobile-first filing experience: The mobile app lets me file on the go, upload documents by snapping photos of my W-2, and speak live, on-screen with a TurboTax Live expert.
- 100% accuracy guarantee with CompleteCheck: TurboTax’s CompleteCheck reviews my return for missing, incomplete, or conflicting information and guarantees 100% accurate calculations, covering any IRS penalties or interest if an error occurs.
- Direct integrations with QuickBooks and gig platforms: TurboTax imports financial data directly from QuickBooks and platforms like Square, Lyft, and Uber, reducing manual entry for freelancers and small business owners.
- Cryptocurrency transaction imports: Through its Coinbase partnership, TurboTax lets me import cryptocurrency gains and losses automatically, with support for importing up to 250 transactions at once in TurboTax Premier.
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
- Won’t let you access the return from the mobile app
- Excludes full review of your return in the free tax pro assistance
Pricing |
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Mobile app | iOS and Android |
Tax calculator | ✓ |
Accuracy guarantee | ✓ |
Cryptocurrency support | ✕ |
Deduction maximizer | ✕ |
Data import | ✓ |
Audit guidance or defense | ✓ |
H&R Block works well as a one-stop shop. For a relatively affordable fee, I can use H&R Block Premium & Business to prepare and e-file both my personal federal and state returns (Form 1040) and my Schedule C in one place.
One feature I especially appreciate is the free in-person audit support. While user reviews are mixed, that’s not entirely surprising — audits are stressful by nature. What stands out to me is that H&R Block gives me the option to carry the experience through to the very end with real, face-to-face help if I need it. TurboTax also offers audit defense, but H&R Block’s in-person support feels like the more established and widely used option.
Standout features
- AI Tax Assist (24/7 assistance): H&R Block’s AI Tax Assist is a generative AI experience designed to provide 24/7 tax-filing assistance throughout the DIY process. H&R Block states that this feature is available across its Deluxe, Premium, and Self-Employed DIY products.
- Maximum Refund Guarantee with free amendments: H&R Block offers a Maximum Refund Guarantee that refunds your software fees if an error in its tax preparation software entitles you to a larger refund or smaller tax liability. If eligible, you can also amend your return using the software at no additional charge. Claims must be made within the same calendar year the return was prepared and are subject to additional restrictions.
- Audit and tax notice assistance: For returns filed with H&R Block DIY online, the Audit Support Guarantee includes help understanding IRS or state tax notices related to that return, along with guidance on next steps, at no extra cost. This support does not include in-person audit representation or hands-on response services, which are offered separately.
- Desktop software with broad filing capabilities: H&R Block’s desktop editions are commonly marketed as supporting unlimited federal return preparation and printing, along with up to five federal e-files, depending on the edition and tax year.
- Payroll and contractor form creation: The Premium & Business desktop edition supports creating common employer and contractor forms, including Forms W-2, 1099, 940, and 941, based on product descriptions for recent tax-year releases.
- Schedule C filing for self-employed taxpayers: H&R Block Premium & Business supports Schedule C filing for self-employed individuals. Desktop editions typically include one state program download, though state e-file fees and availability can vary by edition and tax year.
Block Advisors: Best for affordable prep by a tax pro
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 a mobile app
Pricing |
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Mobile app | ✕ |
Tax calculator | ✓ |
Accuracy guarantee | ✓ |
Cryptocurrency support | ✕ |
Deduction maximizer | ✕ |
Data import | ✓ |
Audit guidance or defense | ✓ |
H&R Block has a long-standing reputation in tax preparation, and through Block Advisors, it extends that expertise into year-round financial support. With a clear focus on small businesses and self-employed individuals, Block Advisors gives me the option to partially or fully outsource not just tax prep, but also ongoing bookkeeping and payroll.
Standout features
- Specialized, personalized tax support: I have access to tax advisors with specialized training in small business taxes, with support available year-round. This makes it easier to get help not just during filing season, but throughout the year as business questions come up.
- Flexible support options: Block Advisors offers support via phone and online channels, giving me the flexibility to connect with an advisor based on my needs.
- Year-round accounting services: Beyond tax preparation, Block Advisors offers ongoing bookkeeping and payroll services, allowing me to centralize more of my financial operations with one provider.
- Customizable financial services: Block Advisors lets me choose from a range of services — including tax preparation, bookkeeping, and payroll — so I can tailor support based on how much help my business needs.
- Xero integration: Block Advisors partners with Xero, making it a practical option for businesses that already use Xero for accounting or want compatibility with that platform.
FreeTaxUSA: Best for freelancers needing affordable 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 returns 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 minimal customer support options for free customers
- Doesn’t support partnership or corporate tax return preparation
- an’t import W-2s or 1099s
Pricing | Free to file a federal Form 1040 individual return with Schedule C, plus $15.99 to file each state. Filing prior-year federal returns is also free, and state returns are $17.99 each. Support plans:
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Mobile app | ✕ |
Tax calculator | ✕ |
Accuracy guarantee | ✓ |
Cryptocurrency support | ✕ |
Deduction maximizer | ✕ |
Data import | ✕ |
Audit guidance or defense | ✓ |
FreeTaxUSA is ideal for self-employed workers looking for free tax software to file their individual federal tax returns, including Schedule C. 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.
Standout features
- Free prior-year federal returns: FreeTaxUSA allows me to prepare and file prior-year federal tax returns at no cost, while state returns are available for a per-return fee. Current product pages highlight recent prior years, and the platform supports preparing past-due returns directly within the software.
- Unlimited amended returns with Deluxe or Pro Support: If I purchased Deluxe or Pro Support on my original return, I can file unlimited amended returns at no additional charge. Otherwise, amended prior-year returns are available for a per-return fee.
- Access to prior-year returns filed with FreeTaxUSA: I can access and print copies of prior-year tax returns that I prepared using FreeTaxUSA, making it easier to reference past filings when needed.
- 100% accuracy guarantee: FreeTaxUSA reimburses IRS or state penalties and/or interest that result from calculation errors made by its software. The guarantee is limited to penalties and interest only and does not apply to errors caused by incorrect information I entered.
- Audit assistance with Deluxe upgrade: With the Deluxe Edition, I get audit assistance, including help from a tax specialist in understanding audit notices and navigating the audit process.
- Option to pay fees with my refund: If eligible, I can choose to pay applicable fees out of my tax refund, provided the refund exceeds the total fees plus a processing charge.
BoomTax: Best cloud software for information returns
Pros
- Offers a 100% money-back guarantee
- Supports ACA reporting Offers filing for W-2s and 1099s
- Can import from QuickBooks Online and popular payroll providers like ADP and Sage
- Lets you choose the delivery method: mail, email, or a batch PDF download
Cons
- Doesn’t support income tax filing
- Lacks desktop software
- Lacks mobile app
- Has no free trial
Pricing | Pay-as-you-go for 1099 and W-2 forms First 12 forms cost $39, and then pricing shifts to per-form. ACA filing
Optional fees
If you don’t want to pay extra for form delivery, you can download the forms as a PDF and arrange delivery yourself. BoomTax allows you to file information returns late, but I suggest doing so as soon as possible to minimize penalties. |
Mobile app | ✕ |
Tax calculator | ✕ |
Accuracy guarantee | ✕ |
Cryptocurrency support | ✕ |
Deduction maximizer | ✕ |
Data import | ✓ |
Audit guidance or defense | ✕ |
Average user reviews | Users rave about the ease of use and availability of customer support. |
Although BoomTax doesn’t support income tax filing or payroll processing, I like it as an affordable, straightforward option for handling 1099s, W-2s, and other ACA-related forms. Its guided, step-by-step workflow makes it easy for me to complete forms such as 1099-NEC, 1099-MISC, 1099-DIV, 1099-INT, 1094-C, 1095-C, 1094-B, and 1095-B.
Standout features
- ACA filing support: BoomTax simplifies ACA filing by providing resources, including a Form 1095-C guide and articles that explain current tax laws.
- Easy e-filing: When I select “E-file,” BoomTax manages the entire e-filing process from start to finish. It doesn’t require an IRS account, a Transmitter Control Code (TCC), or any coding experience.
- IRS-compliant e-delivery: Because IRS rules require recipient consent before emailing forms, BoomTax manages the consent and delivery process for me to help ensure compliance.
- W-2, 1099, and ACA form filing for small businesses: BoomTax provides a quick, affordable way to prepare and file W-2s, 1099s, and ACA forms, with the ability to import data directly from QuickBooks Online to reduce duplicate work and streamline filing.
How I evaluated the best tax software for small businesses
When determining the best business tax software, I 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 customer support.
- Pricing: I checked how much the platform costs and if assisted or full-service support is included. I also considered the amount you’ll need to pay for federal and state returns.
- Features: The provider should offer most, if not all, of the features expected of business tax software, including automatic import, e-file management, and a deduction maximizer.
- Ease of use: I considered how efficient it is to enter data into worksheets and how easy it is to review your tax forms. I also reviewed the availability of tax support and whether the provider offers an unlimited option, tax advice, and guidance.
- Data import and accounting software integration: I looked into whether the tool 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, consider the other business systems your small business requires, select a combination of tools that best fit your needs, and 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.
S-corps and partnerships must 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 is 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.
Costs and features
In addition to federal returns, most individuals and businesses must file state returns. When comparing the cost of small business tax software, include the cost for all your required returns and note that the tool 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 offers both an online and a desktop version for those who want to prepare their own taxes.
Yes, 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. State tax returns cost $14.99.
The cost of small business tax software can vary depending on the specific software, its features, and the forms you need to file. On average, prices will range from $50 to $200 monthly for a basic package. More advanced options with additional features — such as real-time collaboration and data import/export capabilities — can cost up to $500 or more monthly. Many 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.



