If you own a small business, tax season can get hectic.
Hiring a tax preparer to do your business taxes can save you time, but it's often less expensive to do it yourself online.
To find the best online tax software for small business owners, we compared four of the leading providers — H&R Block, TurboTax, TaxSlayer, and TaxAct — on cost, user experience, value, access to tax experts, and trustworthiness. We chose three of them as our top picks.
Best Tax Software for Small Business Owners
- TurboTax: Best overall tax software for small businesses
- TaxSlayer: Best tax software for freelancers and sole proprietors
- H&R Block Tax Software: Best affordable tax software for startups
File Your Taxes
Best Overall Tax Software for Small Businesses
| Software | Price | Who it's for |
| TurboTax Premium | $79 for federal returns $39 per state return | Sole proprietors, partnerships |
| TurboTax Premium Live Assisted | $179 for federal returns $49 per state return | Sole proprietors, partnerships |
| TurboTax Live Assisted Business | $489 for federal returns $64 per state return | Partnerships, S-Corps, multi-member LLCs |
Key features:
- Allows easy imports from Uber, Lyft, Square, and QuickBooks
- Direct access to tax pros seven days a week, and a final review of your return, with Live Assisted
- One-on-one audit support
- Unlimited W-2 and 1099 creation for employees
- Tax pro guidance offered year-round
- *Not available in all states
The Premium edition of TurboTax small business software (formerly called Self-Employed) is ideal for anyone with income from the gig economy, a side business, or contract work. You can easily upload your business tax documents as PDFs, snap a photo through the app, or import from a payroll provider or financial company. And you can create and file W-2s and 1099s for your own employees. For unlimited and direct access to tax pros, you can upgrade to a Live Assisted plan.
Filers with more complex business structures (partnerships, S-corps, and multi-member LLCs) will need to use TurboTax's Live Assisted Business package. The cost is considerably higher than the self-preparation software but includes help from a business tax expert and unlimited, year-round tax support with no appointment needed.
Best Tax Software for Freelancers and Sole Proprietors
up to $52.95 for federal tax return and an additional $39.95 for state tax return
- Strong option for self-employed filers
- Low price — comparable self-employed packages at H&R Block and TurboTax are more than 2x the cost
- All packages include phone and email support
- Self-employed package includes on-demand access to a tax professional
- Simple and clean interface
- Ability to set up reminders to pay estimated quarterly taxes throughout the year
- Filers with any type of tax situation who meet AGI limits can use the IRS Free File program to file a federal return, and maybe a state return, with TaxSlayer at no cost
- Free version advertised on its website does not include earned income tax credit or child tax credit
- Interface isn't as intuitive as H&R Block or TurboTax
TaxSlayer is a good budget option for people who don't need a lot of assistance when filing their taxes and can be a great value for self-employed filers. However, the interface can be a bit clunky, and the free and lower-cost packages might not have all the features you need.
TaxSlayer- Choose direct deposit for your refund and e-file your return to get your fastest refund possible.
- Everyone gets free, unlimited phone and email support. And if you need more help, we have you covered from Ask a Tax Pro to Audit Defense.
- Download free app for tax filing, resources, news, and tips at your fingertips.
- Guaranteed maximum refund
- 100% accuracy guaranteed
- Zero out-of-pocket fees
| Software | Price | Who it's for |
| TaxSlayer Self-Employed | $52.95 for federal returns $39.95 per state return | Sole proprietors, single-member LLCs |
Key features:
- Cheaper than TaxAct, H&R Block, and TurboTax
- Audit defense with enrolled agent representation for three years
- Avoids manual data entry with 1099 uploads
- Includes access to IRS-certified tax pros via email and phone
TaxSlayer Self-Employed plan is a standout offering for sole proprietors and single-member LLCs, in part because of its affordability.
For a fee that's around 30% cheaper than competitors, you'll unlock access to tax pros with self-employment expertise, year-round estimated tax payment reminders, and an exclusive self-employed tax guide. For freelancers, contractors, and gig workers with multiple sources of income, the ability to upload 1099s is a big time-saver.
Best Affordable Tax Software for Startups
- Seamless data entry when you upload tax documents (PDF or photo of paper document)
- Interface is modern and easy to navigate
- Instructions are clear and helpful
- Company doesn't try to upsell you while preparing a return
- Ability to save your spot and return later
- Offices in all 50 states where tax professionals can prepare your return in person or virtually
- Cost
- $0 option does not include itemized deductions
- $0 plan does not offer on-demand chat or phone support
H&R Block has something for everyone, whether you're filing online yourself, looking for expert advice, or want to hand it off to a professional. While it doesn't offer the lowest prices you'll find for tax software, the quality of the overall user experience can justify the higher cost.
H&R Block- File your own taxes
- Step-by-step guidance
- Add expert tax help any time
- Real time results
| Software | Price | Who it's for |
| H&R Block Self-Employed Online | $85 for federal returns $37 per state return | Sole proprietors, single-member LLCs |
| H&R Block Tax Pro Review | $180 for federal returns $37 per state return | Sole proprietors, single-member LLCs |
| Block Advisors File with a Tax Pro (full service) | Starting at $210 for federal returns $75 per state return | S-Corp owners, C-Corp owners, partnerships |
Key features:
- Free live expert and AI assistance
- Seamless data entry when you upload tax documents
- Clean and easy-to-use interface with guidance along the way
- Easy expense and deduction reporting
H&R Block offers two ways to prepare and file taxes online as a small business, plus a full-service plan that's considerably cheaper than TurboTax. Both online plans come with access to a tax pro at no extra charge and simple document upload and import to save you time on income and expense data entry.
Estimate Your Taxes
What Are Small Business Taxes?
Partnerships, multi-member LLCs, and S-Corporations must file a tax return every year to report income, deductions, profits, and losses for the business.
Because these organizations are flow-through entities, the owners, partners, and shareholders pay taxes on the income. If you're a general partner, Form 1065 needs to be filed for your business. If you're an S-Corp, Form 1120S must be filed. LLCs are unique in that they choose how they want to be taxed, whether as a sole proprietorship, partnership, S-Corp, or C-Corp.
Sole proprietorships report income as a self-employed individual, and do not require filing a separate tax return. Instead, business taxes are reported on Schedule C.
Once the business forms are filed for a partnership, LLC, or an S-Corp, each owner or partner receives Schedule K-1, which details their share of income to report on their personal tax return. Independent contractors and employees of the business itself will also receive the forms needed to fill out their personal tax returns.
Why Some Small Businesses Need Tax Software
Benefits of Using Tax Software for Small Businesses
Small business owners can save money doing taxes themselves with small business tax software, and enjoy a more hands-on experience than sending their documents to an accountant.
The average fee charged by tax preparers for business returns in 2023 was $604, according to a report by the National Association of Tax Professionals. Partnerships can file with TurboTax's tax software for as little as $228 and still receive one-on-one guidance from tax experts, if needed. Filing an S-corp business return with TurboTax is going to be pricier, but it's still cheaper than hiring a professional on average.
Common Features in Small Business Tax Software
Online tax software guides users through prompts to help them report all of their business income, deductions, and depreciation and file the correct IRS and state forms. Many have deduction databases that help users filter through industry-specific tax write-offs.
The best tax software for small businesses helps you to keep track of your income and expenses all year long or allows you to seamlessly import data from an accounting program directly to your tax return, cutting down the time spent manually entering all the numbers. As a bonus, many online tax software programs for small businesses now offer access to a tax specialist who can answer questions and give personalized advice without a huge cost increase.
Features to Look for in Small Business Tax Software
Expense Tracking and Deductions
Keeping track of expenses all year long can save you a lot of time — and headaches — during tax season when you might otherwise be scrambling for receipts for purchases you want to deduct.
The ideal tax software for your business will accept profit and loss statements and expense records from whatever accounting or bookkeeping program you use, so you don't have to spend hours manually entering data.
Guarantees
Any tax software you use to file your business taxes should come with a full accuracy guarantee, a maximum refund or savings guarantee, and audit support. These guarantees give you peace of mind that the software is doing its job to calculate your taxes accurately and find every deduction you qualify for. If the software falls short, you should get a refund of your fees paid and/or reimbursements for any underpayment tax penalties.
Customer Support and Resources
Small business taxes can get confusing, and getting help when you need it shouldn't be a luxury. Look for tax software that includes access to a tax specialist, so that when you have questions about reporting income or deductions, you can get someone on the phone or a live chat quickly.
How to Choose the Right Tax Software for Your Business Needs
Key Considerations for Small Businesses
If preparing your own small business taxes means you'll be neglecting other areas of your business, it may be worth it to hire a tax pro. But if you're familiar with the tax-prep process and you've carved out time for it, tax software can offer a simple and user-friendly way to get the job done quickly and accurately. And the best tax software stores your tax returns so you can easily pre-fill your forms next year.
To ensure you're getting every tax break your business qualifies for, you should make sure your tax software plan comes with access to an expert. If you have a question about a specific deduction or a depreciation calculation, for example, you'll be able to turn to a pro for a quick answer.
Tax Software for Freelancers and Contractors
Freelancers and contractors who operate as single-member LLCs or sole proprietorships can file their business and personal taxes together, using the same software to create a federal return and a state return if needed. The top providers of tax software for freelancers and contractors are TaxSlayer, TurboTax, and H&R Block. All offer users the ability to upload or import tax forms for faster data entry and provide access to tax experts in multiple ways.
Why Trust Us: How We Rated Small Business Tax Software
The best tax software for small business owners is cost-effective, accurate, and easy to use. While you may feel comfortable navigating business taxes on your own, you still need clear guidance to make sure you don't miss a reporting requirement, credit, or deduction, and you may even have questions in need of an expert answer.
Not all of the best tax software providers have products geared toward small business owners. We reviewed four that do — H&R Block, TurboTax, TaxAct, and TaxSlayer — on cost, value, and user experience, and all but TaxAct made the cut for this list.
In our review process, we compared small business tax software's prices, features, and customer reviews, where available. Each of these companies gives business filers access to tax professionals via multiple channels, offers industry-standard accuracy and refund guarantees, and includes some level of audit support. But some are better for certain types of business filers, such as sole proprietors, than others.
For more information on how we rate tax software, see our tax software methodology.
FAQs
What is the best software for small business taxes?
TurboTax offers some of the best tax software for small businesses. While it's not the cheapest option on the market, TurboTax's software comes with many attractive features for business owners, including the ability to get personalized help from a tax professional and create tax forms for employees.
Can tax software handle both personal and business taxes?
Tax software for self-employed filers who have 1099 income can handle both personal and business taxes. If you're registered as a partnership, S-corp, or C-corp, you'll need to file a separate business tax return. TaxSlayer offers a bundle for online filing that may help you save money.
Do small business tax software programs integrate with QuickBooks?
TurboTax and QuickBooks are both owned by Intuit. Some QuickBooks plans allow you to do your taxes directly on the platform without logging in to TurboTax, while others require a few steps to import your information to your chosen TurboTax product.
Is tax software secure for small business data?
The top business tax software providers use industry-standard data encryption practices to safeguard your personal and business tax information.
How much does tax software for small businesses typically cost?
Tax software for sole proprietors and single-member LLCs is $52.95 at TaxSlayer, $79 at TurboTax, and $85 at H&R Block. When you add in state return fees, the all-in cost for a basic online self-employed plan is between about $90 and $110. For small businesses that are S-corps, partnerships, or C-Corps, H&R Block and TurboTax require upgrades to an assisted or full-service plan. At TurboTax, fees start at $179. At H&R Block, fees start at $210.
Can business tax software help with quarterly tax estimates?
The top business tax software, including TaxSlayer and TurboTax, offers year-round tax planning tools, such as quarterly tax estimates and reminders and expense tracking.
