Small business tax returns are complicated, and it’s usually worth it to hire a professional to prepare your partnership, corporation, or individual business return. However, you don’t have to spend a fortune on a local certified public accountant (CPA). This guide provides a list of online tax professionals who will prepare your small business tax returns.
Here are our picks for best online business tax preparation services:
- Xendoo: Best overall small business tax preparation service without committing to a bookkeeping plan
- Bench: Best for tax preparation for partnerships and corporations bundled with year-round bookkeeping services
- Bookkeeper.com: Best for preparing complex small business tax returns
- Pilot: Best for startups seeking a scalable tax solution
- Block Advisors: Best for small businesses to choose between a virtual or in-person tax professional
Taxes are easier with clean books. Get on top of your financials today with Merritt Bookkeeping. |
|
If you’d prefer to prepare your own small business tax return, you can read our guide to the best small business tax software.
Comparison of Best Online Business Tax Preparation Services
Pricing for Tax Preparation | Bookkeeping Plan Required | Price of Bookkeeping Plan | Mobile App | |
|---|---|---|---|---|
 | $1,200 per year as an add-on to a bookkeeping plan; custom quotes for tax returns with no bookkeeping plan | No | Starting at $395 per month | ✓ |
 | Included in Premium plan | Yes | $499 per month for Premium | iOS only |
 | Must request a quote for tax services | Yes | Starting at $399 per month | ✕ |
 | Starts at $2,450 per year for Pilot Tax | No | $5,988 per year | ✕ |
 | $220 for self-employed returns, $260 for corporate and partnership returns | No | Starting at $150 per month | ✕ |
Xendoo: Best Overall Small Business Tax Preparation Service Without Committing to a Bookkeeping Plan
The business tax preparation and filings of Xendoo are available with all plans for an additional fee of $1,200 per year. Whether you’re a sole proprietor, corporation, or partnership, Xendoo will prepare and file your tax return for the same low price.
It has tax experts who are well-versed with the requirements for each and will help you navigate your next tax season accurately. They will also file your personal taxes if needed. Xendoo is especially ideal for franchises with compliance needs because of its reporting tools and support for multiple currencies.
Pros
- Integrates with Xero and QuickBooks
- 30-day money-back guarantee
- Integrates with Gusto for payroll and most major ecommerce platforms
- Mobile app gives you access to your dashboards
Cons
- No invoicing and bill pay
- Custom chart of accounts is only available with most expensive plan
- No free trial
- Accrual-based accounting is unavailable with Essential plan
Features
- Sales tax preparation: Xendoo’s sales tax experts will prepare and file your taxes accurately and on time so that you stay compliant.
- Franchise support: Xendoo can address the needs of franchises with accurate reporting based on a customized chart of accounts and support for multiple currencies and group benefits, such as group training sessions and webinars.
- Payroll integration: Xendoo integrates with Gusto, which helps you manage your employee information, benefits, and deductions. You can process payroll, file payroll taxes and forms, and process W-2s for employees.
- Multiple companies: If you have more than one business, you can add multiple companies easily within one account, and Xendoo will manage the books for all of them.
Xendoo Overview
Bench: Best for Partnerships & Corporations Bundled With Year-round Bookkeeping Services
Bench provides bookkeeping support at a lower cost than many similar platforms while also offering tax assistance and payroll integration. It even has catch-up bookkeeping services if you have fallen behind on your bookkeeping.
The annual business tax return (Form 1120, 1120S, or 1065) is included in Bench’s Premium plan. The Premium plan for self-employed businesses includes the entire personal return along with Schedule C. Partnerships and corporations are included with the Premium plan, and you can add on personal filing for one partner or shareholder for $69 per month.
Pros
- Unlimited support included in the monthly price
- Access to a team of in-house tax pros
- Affordable bookkeeping plan includes a business income tax return
- Catch-up bookkeeping available
Cons
- Cannot purchase tax services without a bookkeeping plan
- No Android app for communicating with your tax pro
- Cannot add more than one individual return for the discounted price of $69 per month
- Bookkeeping system operates on proprietary software that makes it difficult to change bookkeeping providers
Features
- Tax assistance: With Bench’s Premium plan, your federal and state business tax returns, as well as individual returns for sole proprietors, are included.
- Payroll integration: Bench integrates with Gusto to help you manage your payroll. It will handle your payroll tax filing, manage employee information and benefits, and generate W-2s.
- Financial statements: You’ll receive financial statements, including a profit and loss, balance sheet, income statement, and top expenses, on a monthly basis.
- Dedicated bookkeeper: Your dedicated bookkeeper will handle all aspects of your account and serve as your main point of contact.
Bench Overview
Bookkeeper.com: Best for Preparing Complex Small Business Tax Returns
Bookkeeper.com will help you file your returns while also helping to minimize your tax liability with careful planning. We selected it for this guide because of its ability to prepare complex small business tax returns. In addition to individual and business tax returns, it will also prepare your gift and estate tax returns, partnership and corporate tax returns, and out-of-state returns.
Its tax experts will even teach you tax-saving strategies and maximize after-tax income by deferring income and managing investments. They will also educate you on the basics of taxation and how taxes are calculated.
Pros
- Tax experts are available to teach you tax-saving strategies and the basics of taxation
- Assistance with all types of tax returns, including partnership and corporate tax returns
- Specializes in QuickBooks Online
- Unlimited online support available with most plans
Cons
- No free trial available
- High monthly service fee
- Lack of transparent pricing with add-on services like tax preparation
- No mobile app available
Features
- Tax planning: Bookkeeper.com’s tax experts will help you maximize after-tax income by deferring income and managing investments, as well as teaching you tax-saving strategies
- Free advice: Your monthly plan includes general business consulting, software training, tax planning, and strategic planning
- Tax and consulting services: Bookkeeper.com’s tax services include: individual and business tax returns, gift and estate tax returns, partnership and corporate tax returns, estate and succession planning, out-of-state returns, and business startups
- Dedicated bookkeeper and account manager: Your dedicated bookkeeper is a certified QuickBooks ProAdvisor, and you’ll also be assigned an account manager who’ll assist with onboarding activities and serve as your point of contact
Bookkeeper.com Overview
Pilot: Best for Startups Seeking a Scalable Tax Solution
Pilot is the best solution for startups because it offers two levels of service: Essentials, which is ideal for businesses just getting started; and Standard, which is for United States businesses that are growing quickly with net income or foreign subsidiaries. For companies that incurred research and development (R&D) expenses in the US, Pilot can handle the full claim process and provide the necessary documentation to back up your claim with the IRS.
Pros
- Dedicated bookkeeper
- Unlimited connected bank and credit card accounts
- Industry-specific financial reports
- Chief financial officer (CFO) services available
Cons
- No cash-basis accounting
- Businesses must use QuickBooks Online
- Plans are more expensive than other options and must be prepaid annually
- Payroll services unavailable
Features
- Tax management: Pilot Tax is available as a separate package and federal-, state-, and city-level income tax prep and 1099 filing
- Dedicated tax preparer: You’ll be assigned your own dedicated tax preparer who will answer all of your questions and provide you with access to live status updates of all of your filings.
- Accrual-based accounting: Accrual-based accounting is available with all plans.
- Monthly financial reports: Basic financial reports are sent on a monthly basis. The Core plan offers more customized reports as well.
Pilot Overview
Block Advisors: Best for Small Businesses to Choose Between a Virtual or In-person Tax Professional
Once you sign up with Block Advisors, you’ll be given the option to meet with your tax pro either in person or via phone, video conference, or live chat. Your tax advisor will complete the necessary forms and allow you to review the return before filing. They’re also available year-round for any questions that may come up.
Pros
- Free unlimited live expert help
- Ability to meet with a tax pro in person or virtually
- Transaction syncing available
Cons
- No mobile app for communicating with your tax pro
- Block Advisors only partners with Xero accounting software
Features
- Small business expertise: Your Block Advisor is equipped to handle anything from your Schedule C return to reviewing your financial statements.
- Accessible support: Support is available via phone, video, and live chat. You can also file with a tax pro in person at a location near you.
- 100% Accuracy Guarantee: You can rest assured that your books will be accurate as Block Advisors guarantees that if it makes an error on your return, you’ll be reimbursed for any resulting penalties and interest.
- Payroll services: In addition to providing payroll services, Block Advisors can assist with generating payroll, creating and filing quarterly and year-end payroll tax forms, and providing support.
Block Advisors Overview
How We Evaluated Online Full-service Tax Preparation Services
We evaluated the best online full-service tax preparation services based on the following criteria:
- Cost: Because each plan depends on many factors, we looked at the value provided in terms of the time and potential money you’re saving by using the service.
- Available tax solutions: We looked at the types of returns that are available, as well as whether tax consulting is available.
- Support: You should be able to access a dedicated bookkeeper for any questions or advice and one-on-one assistance. We evaluated whether unlimited support was available, as well as the ways that you could communicate with your tax advisor.
- Additional services offered: The best accounting service should offer a wide range of solutions, including catch-up bookkeeping, payroll, invoicing, and bill pay.
- Mobile app: Many of these tax preparation services have their own mobile app that can assist businesses on the go with staying connected 24/7.
Frequently Asked Questions (FAQs)
How much does Block Advisors charge to file your taxes?
Block Advisors lets you choose between DIY and full-service options for tax filing. The Tax Filing DIY plan starts at $195 plus $44.99 per state filed and the Tax Filing Full-Service plan starts at $220. Although it’s not required, you can also opt for bookkeeping services, which range from $50 to $150 per month.
Does Bench offer a mobile app?
Bench offers a mobile app for iOS users, but there’s currently no app for Android users.
Does Pilot assist with the claim process for R&D expenses?
Yes, Pilot will help you with the full claim process and it will provide the necessary documentation to back up your claim with the IRS.
Bottom Line
The best online business tax preparation services depend on the exact needs of your business. If you’re seeking a tax solution but don’t want to commit to a bookkeeping service, Xendoo might be the best option for you. If you want a bookkeeping service that bundles its tax prep for partnerships and corporations, you should consider Bench. If your startup is seeking a scalable tax solution, Pilot could be a good fit for you.
