Have you filed your business taxes yet? And do you think that’s something that will take forever? Well, there are some software programs that you can use that will make the task of filing your taxes quick and painless. While most self-employed people don’t like the idea of filing their taxes, they still have to be filed. For those of you wondering what software is best, read on to find out what you should consider using for your business taxes.
Starting a small business comes with many responsibilities, one of them being managing your taxes. Believe it or not, but effectively managing payroll can be quite complicated. You have to take into account retirement plans, health care plans, workers’ compensation, Social Security tax etc. Not to mention that filing your corporate taxes can also be complicated even if you don’t have much employees. Luckily, by using the right software for business taxes, you can keep tabs on everything much easier.
If you run a small business, preparing accurate annual tax returns is required by law. According to the National Society of Accountants, the average cost to prepare taxes for a small business ranges from around $184 per year for a Schedule C to around $826 per year for a corporation.1 While an accountant may offer peace of mind, you can often save quite a bit by doing your taxes yourself with small business accounting software.
Most tax software packages come with similar guarantees for accuracy and a maximum refund, but the user experience and features can vary widely. To select the best tax software for small business, we reviewed 10 different software options based on product features, ease of use, accuracy, and more. So, if you’re looking to do taxes for a small business this year, here are the best tax software offerings for you.
The 5 Best Tax Software for Small Business of 2021
H&R Block
We chose H&R Block as best overall because it is a trusted name in tax preparation, and its tax software for small businesses and business owners offers an excellent user experience and covers a wide range of tax situations. It offers a straightforward user interface that makes it easy to do your taxes accurately the first time.Pros
- Online version includes self-employment and small business income on your personal tax returns
- Option to upgrade for on-demand assistance from a tax expert
- Mobile app allows you to upload tax documents and track filing status
Cons
- Business editions are priced higher than competitors
- Some functionality may not be available on mobile
H&R Block is a well-known brand in personal and business tax preparation. It was founded in 1955 and has prepared more than 800 million tax returns. If you want to do your own taxes, you can choose between online and downloadable versions of H&R Block’s tax software. For the 2019 tax year, H&R Block prepared almost 22 million tax returns and nearly 9 million people used H&R Block Online to do their taxes.
Windows desktop users get the most robust options, including corporation or partnership tax forms and employee-specific tax forms. This comes through H&R Block’s downloadable Premium & Business software, which costs $89.95 plus $39.95 per state return. If you can get by with a Schedule C, you can file with the Premium Online edition for $69.99 or Self-Employed Online for $109.99. Both require an extra $44.99 per state. If you have significant business expenses, you’ll need the Self-Employed edition, their top-tier online option.
The software program does a good job of walking you through complex tax situations. If you think you’ll need extra help, you can upgrade to Online Assist, which allows you to do your taxes on any device with unlimited, on-demand help from a tax pro. It costs $159.99 for Premium or $194.99 for Self-Employed, plus $49.99 per state.
Whether you file online or with the download version, the tax software comes with a maximum refund guarantee and 100% accuracy guarantee. All versions have an audit support guarantee. Whichever you choose, H&R Block covers most tax situations and is a top choice for many business owners, which is why it gets our best overall ranking.
BEST FOR PARTNERSHIPS AND CORPORATIONSTaxAct
TaxAct includes an option to complete tax filings for partnership and corporations completely online and is the only place you can prepare taxes for a partnership or S corporation with either a PC or Mac online, which is why it’s our choice as best for partnerships and corporations.Pros
- Completely online federal and state taxes for partnerships, C corporations, and S corporations
- Unlimited free support from tax specialists and technical support by phone and email
- Choose between online and downloadable versions
- Discounts available for bundling personal and business taxes
Cons
- Limited options for audit support
- State forms may not be available to file electronically
- Downloadable version for Windows only
TaxAct is a large provider of online and downloadable tax software that has completed over 80 million tax returns since 2000.
Business owners who file online will pay $124.95 plus $49.95 per state. That includes sole proprietors who file with a Schedule C, partnerships that require Form 1065, corporations that file with Form 1120 or Form 1120s. However, tax-exempt organizations that file Form 990 must by the downloadable version though..
The download version (Windows only), which includes 5 federal e-files is $109.95. States cost $50 each. You can bundle personal and business for a total of $200.
The online experience isn’t quite as polished as some of the larger competitors, but it is generally intuitive and easy to follow. If you need assistance along the way, tax help and technical support are both available by phone. Customer service (without tax help) is also available by email.
TaxAct guarantees accuracy and the maximum possible refund but doesn’t include audit support. You can pay extra during your tax preparation process to add audit support with their third-party partner Protection Plus. Overall, TaxAct is an excellent choice for those who can handle things primarily on their own, and perhaps the only choice for PC or Mac users who want to do partnership or corporation taxes on their own, which is why it’s our top tax software choice for partnerships and corporations.
Runner-up
H&R Block
LEARN MOREOn H&R Block’s secure site
- Cost$87.99 or $194.99 federal, $49.99 per state (see breakdown by plan below)
- Mobile appYes
- Live supportYes, costs extra
- Better Business Bureau ratingA+
Terms apply, see below for our methodology.
Pros
- Simple step-by-step guidance that’s easy to follow
- Unlimited on-demand chat or video support with Online Assist plans
- Ability to speak to a tax expert who has an average of 10 years experience (costs extra)
- Over 11,000 physical locations so you can meet with a tax expert in-person
- Maximum refund guarantee, or H&R Block will refund the plan fees you paid
- Audit support guarantee, which provides free assistance if you get an IRS or other tax notice
- 100% accuracy, or H&R Block will reimburse you for any penalties or interest up to $10,000
Cons
- Plans that include speaking with a live tax expert cost $107 more for federal returns
- One of the more costly software programs
Cost breakdown by plan:
- Self-employed (for personal and business income and expenses): $87.99 federal, $44.99 per state per state
- Online Assist Self-employed (includes help from tax experts): $194.99 federal, $49.99 per state
Conclusion
With the annual April 15th deadline looming, many business owners are scrambling to figure out how to handle their 2014 taxes. While bookkeepers and accountants remain in high demand, there are number of great software programs available to help make things easier for the business owner.