When it comes to small business owners, taxes are one of the most important tasks. Make a mistake in your tax filings and you’ll quickly learn why so many small business owners dread the time leading up to tax season. Fortunately, there is a way for small business owners to keep from making mistakes when filing their taxes. Use these top best small business tax software free options to help your business stay compliant with all necessary paperwork.
The tax filing time is just around the corner. And many of us are considering using tax software to help us file our taxes. If that’s you, then you should consider take a look at this article to learn about best tax software for small business owners or about best small business tax software. I promise it will make your task much easier.
Intuit TurboTax
Offering packages for small business owners who want to file their own taxes or get help from a CPA over the internet, Intuit’s TurboTax is the overall best tax software for small businesses, because it gives its users the tools they need to file properly.
While it costs slightly more than similar software in this category, TurboTax’s features and excellent customer service make it the best online tax filing solution. For instance, business owners using the highest-tier service can search for industry-specific deductions, and the software manages employee tax forms.
TurboTax is available for download or online use, and it is compatible with mobile devices, so you can check your return status when you’re on the go. Should you be hit with an audit, TurboTax offers specialized support to make the process less painful.
H&R Block
H&R Block is the cheapest federal tax filing solution for self-employed folks. You can import previous returns from other tax preparers like TurboTax, TaxAct and Credit Karma. Though it offers several plans, freelancers and entrepreneurs will be best served with the company’s Self-Employed Online package, which helps you find business deductions, write off startup costs, and fill out forms like a Schedule C.
Unlike some of its competitors, H&R Block discloses its prices upfront. If you want a tax professional to check and sign your return, however, you need to select the highest tier.
TaxAct
TaxAct is the best free online tax filing solution because it gives you easy access to the entire tax-filing process – including state tax filing. Users switching from TurboTax or H&R Block can import previous 1040, 1040A and 1040EZ forms. While it lacks the sophisticated features of paid programs, TaxAct still has helpful features, such as step-by-step guidance, a deep glossary of tax terms and a free inspection of your return.
TaxSlayer
TaxSlayer’s pricing model sets it apart: The company charges according to the level of support you want, rather than according to a software package’s capabilities. In other words, the cheapest paid package handles all the same tax situations and forms that the most expensive package handles — what changes is how much help you can get. Translation: If you’re a confident tax filer and don’t need a lot of support, you could save a lot of money with TaxSlayer.
Quick facts
- Prices are based on level of support rather than level of functionality.
- A bargain compared with bigger-name competitors.
- Fewer real-time support options — especially face-to-face ones — than some competitors offer.
Liberty Tax
REASONS TO BUY
+Personal touch+Pretty straightforward
REASONS TO AVOID
-Fairly minimalistic
Liberty Tax is an affordable option for small business owners and is available online in a trio of editions, Basic, Deluxe and Premium, with the Deluxe version being suitable for the self-employed and a Premium package that is better suited to S corporations. Basic is just that, for those with the simplest of tax affairs to sort, so unlikely to be of appeal to SMBs.
It also comes with the back-up appeal of mixing cloud-based tax preparation with on-site options, allowing you to mix and match your filing duties. Functionality is, in the main, fairly spartan without too much in the way of frills, but that’s all that many users want from their business accounting package anyway.
Having the ability of getting help, either online via chat or email, can be mighty useful if you’re not too confident with your filing duties. At the same time, getting someone to check things over in person is even more beneficial in some cases. Liberty Tax also has online and classroom-based tax courses if you really want to get on top of your taxes.
On the downside, customers of Liberty Tax occasionally grumble about some aspects of its usability and less on-the-ball customer support. Nevertheless, if you’re prepared to take on those compromises then Liberty Tax is another option to consider, especially if some face-to-face assistance is likely to be required along the way.
eFile
REASONS TO BUY
+Decent features+Cheaper+Solid option
Another option if you’re looking for a simple-but-effective means to tackle your tax is eFile. This online-only option currently comes in three different packages, with a Free Basic being only suitable for standard W-2 income affairs. However, eFile is pretty useful if you’re a self-employed business person.
While eFile isn’t really aimed at, or indeed geared up for larger businesses due to its inability to let you file the corporations Form 1120 using the service, it is also useful for SMBs. Indeed, for businesses there’s the Premium edition, which delivers a speedy calculator-style system that issues useful estimates, plus a support agent to help you through the process.
Going down the eFile route means you’ll probably want to bypass the Deluxe edition and go for that Premium model in order to enjoy all of the benefits of a small business targeted filing system. While eFile has a slightly more light-hearted feel to its approach, generally speaking this is a solid and reasonably-priced option.
FreeTaxUSA
REASONS TO BUY
+Low cost +Guaranteed to be accurate
REASONS TO AVOID
-Limited to smaller businesses
FreeTaxUSA might not be the best option to head for if you’ve got more sophisticated small business tax affairs to get sorted, such as Form 1120 for a corporation for example. However, it is worth a look if your tax affairs really are pretty pedestrian as FreeTaxUSA offers basic functionality via a simple-to-use interface.
While there are apparently Simple and Premium options available, small business owners will really need to head straight for the Advanced package to ensure there are enough tools to get the job done. There is a charge for State returns too, so don’t expect a free ride, despite the name. One bonus is the easy import of a prior year return from TurboTax, H&R Block or TaxAct if you’re looking to change.
FreeTaxUSA gets a thumbs up for its Advanced bundle as it comes with assistance for all sorts of business income, with a raft of the major forms all being supported. Beefing up the appeal of FreeTaxUSA is the way the service can carry out real-time monitoring as you enter information, double-check things when you’ve completed a section and then run a final check before you e-file.
Jackson Hewitt Online
REASONS TO BUY
+Ideal for basic filing+Ability to get pro help
REASONS TO AVOID
-Can be a little patchy
The name is already a familiar sight in many physical locations across the US, but Jackson Hewitt Online is a useful extension of the brand that allows filing via the internet. While Jackson Hewitt Online does have its main focus on individual needs, it also caters for small business.
Jackson Hewitt Online has simplified its strategy over successive years, having had various packages previously. Which one you’d choose would have been dependent on the complexities of your tax filing affairs.
However, Jackson Hewitt Online has made amendments to its pricing structure this season and things are currently even more straightforward than ever, with $24 being the universal charge for state tax filing, or $25 for federal. There’s also a $49 option that covers all bases.
And, even though filing can be done online, the additional edge of Jackson Hewitt is the way that you can combine that with the ability to connect with a tax professional. The Jackson Hewitt Online route is suitable for the self-employed and those with more complex tax affairs. So, if you want the reassurance of being able to work through all of that with a real person then it’s worth investigating.
Conclusion:
If you don’t want to spend another year worrying about your taxes, then using one of the best tax software is the answer. Top small business tax software programs will help you do it all at once, including easily organizing receipts, recording data, and completing your taxes.