Advertiser Disclosure
Many or all of the offers on this site are from companies from which Insider receives compensation (for a full list see here). Advertising considerations may impact how and where products appear on this site (including, for example, the order in which they appear) but do not affect any editorial decisions, such as which products we write about and how we evaluate them. Personal Finance Insider researches a wide array of offers when making recommendations; however, we make no warranty that such information represents all available products or offers in the marketplace.
Personal Finance Taxes Tax Software
Written by Tanza Loudenback; edited by Richard Richtmyer
2024-03-08T17:39:33Z
- The Best Tax Software for Small Businesses
- Best for Full-Service Prep
- Best Budget Pick
- Best Value for Sole Proprietors
- Best for Third-Party App Integration
- How do you file taxes for a small business?
- Tax Software for Small Business FAQs
- Why you should trust us
Our experts answer readers' tax questions and write unbiased product reviews (here's how we assess tax products). In some cases, we receive a commission from our partners; however, our opinions are our own.
If you own a small business, tax season can get hectic.
Hiring an accountant to prepare and file your business taxes can save you time, but it's usually much cheaper to do it yourself online.
To find the best online tax software for small business owners, we compared four of the leading online tax preparers on cost, user experience, and access to experts.
The Best Tax Software for Small Business Owners in 2024
- H&R Block Tax Software: Best for full-service prep
- TaxSlayer: Best budget pick for small businesses
- TaxAct: Best value for sole proprietors
- TurboTax: Best for third-party integration
You will see each of the tax software programs detailed in this article also named in our list for filing personal taxes. If you are considering another program and would like to see more reviews (including why some tax software programs didn't make the cut), read our overall list of best tax software.
The Best Tax Software for Small Businesses in 2024
Best for full-service prep
H&R Block Tax Software
On H&R Block's website
Insider’s Rating
4.5/5
Perks
Pull up a chair in H&R Block's office or stay put on your couch. They have all the tax filing options you need. And any way you file, you’ll always get your max refund. Guaranteed.
Fees
Plans start at $0
Pros
- 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
Cons
- Cost
- $0 option does not include itemized deductions
- $0 plan does not offer on-demand chat or phone support
Insider’s Take
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.
Product Details
- File your own taxes
- Step-by-step guidance
- Add expert tax help any time
- Real time results
Best budget pick for small businesses
TaxSlayer
On TaxSlayer's website
Insider’s Rating
4.6/5
Perks
TaxSlayer offers one free federal and one state return with its TaxSlayer Simply Free.
Fees
up to $62.95 for federal tax return and an additional $39.95 for state tax return
Pros
- 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
Cons
- 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
Insider’s Take
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 review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- 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
Best value for sole proprietors
TaxAct
On TaxAct's website
Fees
$0.00 - $99.99 (+$39.99 or $59.99 for state return, depending on package)
Pros
- Expert help is available with every filing package
- Free federal and state filing covers student and child tax credits
- Pay less than H&R Block and TurboTax and get a comparable experience
- Efficient and streamlined interface
- Tax document upload and import for easy data entry
- Handy "double check" tool flags common errors
Cons
- State returns aren't free, even when you qualify for free federal filing
- Middle-of-the road option when it comes to cost
Insider’s Take
TaxAct gets the job done with fewer bells and whistles than H&R Block or TurboTax, though costs can still add up. It's best for someone who appreciates a simple, streamlined interface.
TaxAct review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- 4 plans, including a free federal option
- Simple, intuitive interface
- Free, instant access to a tax expert at all plan levels
- Good middle-of-the road option on price and efficiency
- Option to have a professional file your taxes at an additional cost
Best for third-party integration
TurboTax
On TurboTax's website
Insider’s Rating
4.2/5
Perks
Offers a high-quality user interface and access to experts and is especially valuable for self-employed filers who use QuickBooks integration.
Fees
starting at $0
Pros
- Can be good for relatively complex tax situations that may require help navigating deductions and forms
- Offers step-by-step guidance
- Ability to upgrade for instant access to an expert
Cons
- Not all users will qualify for a $0 filing option
- Most expensive option for many tax situations
- No brick-and-mortar locations to meet with a tax pro
Insider’s Take
TurboTax is among the most expensive options for filing taxes online, but offers a high-quality user interface and access to experts. It's especially valuable for self-employed filers who use QuickBooks integration.
TurboTax Tax Software review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Tell TurboTax about your life and it will guide you step by step. Jumpstart your taxes with last year’s info.
- Snap a photo of your W-2 or 1099-NEC and TurboTax will put your info in the right places.
- CompleteCheck™ scans your return so you can be confident it’s 100% accurate.
- You won’t pay for TurboTax until it’s time to file and you’re fully satisfied.
- TurboTax is committed to getting you your maximum refund, guaranteed.
Best for Full-Service Prep
H&R Block Tax Software
Editor's rating: 4.5/5
| Software | Price | Who it's for |
H&R Block Self-Employed Online | Starting at $89 for federal returns $37 per state return | Sole proprietors, single-member LLCs |
| Block Advisors Partnership Full Service | Fees starting at $85 and increasing from there depending on the complexity of the return | S-Corp owners, C-Corp owners, partnerships |
Pros of H&R Block:
- Modern and easy-to-navigate interface
- Block Advisor packages offer year-round tax support
Cons of H&R Block:
- No DIY option for corporations or multi-member LLCs
- Not the cheapest option on the market
Read our full »
Best Small-Business Software Budget Pick
TaxSlayer
Editor's rating: 4.59/5
| Software | Price | Who it's for |
| TaxSlayer Self-Employed | $62.95 for federal returns $39.95 per state return | Sole proprietors, single-member LLCs |
Pros of TaxSlayer:
- Lowest-cost filing package for self-employed filers in our review
- Includes on-demand expert help
- Streamlined and easy-to-use interface
Cons of TaxSlayer:
- Doesn't service corporations or multi-member LLCs
- Data entry isn't as seamless as more expensive competitors
Read our full TaxSlayer review »
Best Value for Sole Proprietors
TaxAct
Editor's rating: 4.7/5
| Software | Price | Who it's for |
| TaxAct Self Employed | $99.99 for federal return $59.99 per state return | Sole proprietors, single-member LLCs |
| TaxAct Business Online | $124.99 - $159.99 for federal return $59.99 per state return | Partnerships, S-Corp owners, C-Corp owners, LLC members |
Pros of TaxAct:
- Includes on-demand expert help
- Platform is straightforward and uncluttered
Cons of TaxAct:
- Least-expensive package does not service corporations or LLC members
- Business packages don't appear to include on-demand expert help
Read our full TaxAct review »
Best Small-Business Software for Third-Party App Integration
TurboTax
Editor's rating: 4.2/5
| Software | Price | Who it's for |
| TurboTax Live Assisted Business File with unlimited expert help | $489 for federal returns $64 per state return | Sole proprietors, partnerships, S-Corp owners, C-Corp owners, LLC members |
| TurboTax Live Full-Service Business | $1,169 for federal returns $64 per state return | Partnerships, S-Corp owners, C-Corp owners, LLC members, trusts, estates |
Pros of TurboTax:
- All packages service each type of business entity
- Easily import income from Uber, Lyft, Square, and integrate with Quickbooks
- Create unlimited W-2s and 1099s for employees
Cons of TurboTax:
- Among the most expensive options
Read our full TurboTax review »
How do you file taxes for a small business?
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, so business tax forms aren't required annually, and C-Corporations are taxed as separate entities and file Form 1120.
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.
Tax Software for Small Business FAQs
How much does a small business have to make to file taxes?
Sole proprietors, partners, and LLC members with a tax arrangement other than a corporation must file taxes if their net earnings from self-employment were $400 or more for the year. There may be other reasons to file even if you don't meet that income threshold, including to claim deductions and credits.S-Corporations will also need to report income and losses on their personal tax return. C-Corporations file separate tax returns than their owners.
Should I pay taxes quarterly or yearly?
Most self-employed people need to pay estimated quarterly taxes to avoid an IRS penalty. That's because the US has a pay-as-you-go tax system, and these earners don't have an employer withholding taxes from every paycheck. The 1040-ES worksheet helps you figure out what you owe based on your filing status, income, deductions, credits, and other factors.
How do I file taxes if I am self-employed?
Self-employed people are required to report their income on a Schedule C form with their tax return. Use Schedule SE, Self-Employment Tax, if the net earnings from self-employment are $400 or more, according to the IRS.
Why You Should Trust Us: How We Evaluate Tax Software
At Personal Finance Insider, we strive to help smart people make the best decisions with their money. Filing taxes can seem like a frustrating task for many of us and we want to help make the process easier and more affordable.
But "best" is often subjective — there's no single tax software that will work for everyone. Not only are taxes highly personal, but there isn't one universal user experience. That's why we reviewed four top online tax preparers to identify their top strengths and weaknesses when it comes to filing your business taxes.
We considered five factors when reviewing each platform, as outlined below with their corresponding weights. Each of these factors was rated on a five-point scale. We then calculated the weighted average to determine an overall editor's rating.
- Cost (30%): How does the cost compare to similar offerings from competitors?
- Value (20%): Who can use it? Does the cost justify what you get? Can you get the same features elsewhere for a lower price?
- User experience (20%): Is the platform easy to use? Can you seamlessly upload or import documents? Is the guidance clear and non-jargony?
- Expert help (20%): Can you chat, email, or call a tax professional when you have questions? Is this feature included or does it cost extra?
- Support (10%): Is there an accuracy guarantee or audit support? Is customer service reachable and helpful?
Tanza is a CFP® professional and former correspondent for Personal Finance Insider. She broke down personal finance news and wrote about taxes, investing, retirement, wealth building, and debt management. She helmed a biweekly newsletter and a column answering reader questions about money. Tanza is the author of two ebooks, A Guide to Financial Planners and "The One-Month Plan to Master your Money." In 2020, Tanza was the editorial lead on Master Your Money, a yearlong original series providing financial tools, advice, and inspiration to millennials. Tanza joined Business Insider in June 2015 and is an alumna of Elon University, where she studied journalism and Italian. She is based in Los Angeles.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
**Enrollment required.
NEW LOOK
Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview
Thanks for signing up!
Access your favorite topics in a personalized feed while you're on the go.
