Business tax software is very important for many small business owners. Its not only the expense of tax software that you should be thinking about, but also its efficiency on your productivity. Before choosing any best online tax software for small business, you need to check out the options carefully. I have compiled here a list of best business tax software that may help you make up your mind.
In this article , you will find the best tax software for small business Llc that should get you started.
BEST FOR VIRTUAL ASSISTANCE
TurboTax
A market leader, TurboTax includes an option to get on-demand support from a tax professional at home as well as robust technical support for its online and downloadable products, which is why it is our pick for best for virtual assistance.Pros
- Downloadable version covers all small business types including self-employed
- Online version has an upgrade for live support from a CPA or EA
- Online interface that’s easy to use and navigate
Cons
- More expensive than some competing tax software
- 1065 and 1120S forms only available in Windows-only desktop version
- Little additional tax support without paying for TurboTax Live
TurboTax is one of the largest providers of DIY tax software and a good choice for many businesses. TurboTax is owned by Intuit, a California-based software company founded in 1983, and it offers online, desktop, and mobile versions to prepare and file your taxes.
Most business owners using the online version of TurboTax would benefit from TurboTax Self-Employed, which includes personal and business income and expense tax forms. This version costs $120 plus $50 per state. Windows users can install TurboTax Home & Business, which includes 5 federal e-files and 1 state for $120. Additional states cost $45. This version is needed if you want to prepare taxes for a partnership or corporation.
If you want extra help and have questions about your taxes along the way, TurboTax Live is an add-on that includes access to a CPA or other tax expert on-demand, including evening and weekend hours. The TurboTax Live Self-Employed edition costs $200 plus $55 per state. This includes tax support along the way and a final review of your taxes before filing. All TurboTax options include regular access to product and technical support.
No matter which option you choose, TurboTax includes a 100% accuracy guarantee and a maximum refund guarantee. Customers are also protected by audit support for 3 years for most returns. TurboTax is popular for a reason: It has an excellent user interfaces and great built-in guidance while completing your taxes. For those who may want extra help along the way, adding on TurboTax Live could be a smart decision. This tool makes TurboTax the best tax software for at-home assistance.
Who can use TurboTax: General partners, S-Corp owners, C-Corp owners, and LLC members with a Windows operating system.
Cost:
- TurboTax Business desktop version: $159.99 for federal return; additional $49.99 per state return.
Pros: One of the big draws of TurboTax is QuickBooks integration. If you track income and expenses in QuickBooks, you can automatically import all that information onto your return. In general, TurboTax stands out among online tax services for its excellent user experience and reliable customer service.
Cons: You can’t file business taxes online with TurboTax and the desktop software is limited to Windows users only.
File your small business taxes with TurboTax »
BEST VALUE
FreeTaxUSA
FreeTaxUSA’s extremely low pricing starts at $0 for federal returns and $14.99 for state returns including self-employment income, making it our review’s best for low cost.Pros
- Free federal filing and low-cost state filing for business taxes reported on Schedule C
- Low-cost upgrade to Deluxe Edition includes priority support and live chat
- Unlimited amended returns and audit assistance are included in Deluxe Edition
Cons
- No download version available
- Less-robust support with the basic free edition
FreeTaxUSA is a low-cost solution for doing your own taxes online. FreeTaxUSA was launched in 2001 and is owned by CPA firm TaxHawk, Inc. FreeTaxUSA is an online tax preparation service that works in your web browser; there is no downloadable version available.
The federal return is free in most cases, though many users will pay up to nearly $22 for the full tax preparation experience—$14.99 per state and $6.99 to upgrade to the Deluxe edition, which includes priority support, live chat, unlimited amended returns, and audit assistance. However, if you live in a state where no state return is required, you can file completely for free.
Support is limited for users of the free edition, which makes sense, as you are not paying for individual service. The live chat with priority support included in the Deluxe Edition is available from 10:00 a.m. to 9:00 p.m. eastern time, Monday through Friday.
FreeTaxUSA includes a maximum refund guarantee and 100% accuracy guarantee. If you choose the free edition, you have access to every federal tax form and won’t have to pay anything in most cases. If you are looking for a budget-friendly solution for your self-employed tax return, FreeTaxUSA may be your best choice.
BlockAdvisors: Best tax solution for filers who want a lot of support
Who can use BlockAdvisors: General partners and S-Corp owners.
Cost:
- File online with unlimited expert help: $145 and up for federal return; $36.99 per state return.
Pros: BlockAdvisors provides wraparound support for small business owners including tax prep, bookkeeping, and payroll services; this is an advantage if you’re looking for all-in-one financial help, though each service can be purchased individually, including tax prep.
Plenty of help is available if you need it: You have the option to hand off your taxes to an expert (costs will vary) or DIY your taxes online with unlimited help.
Cons: Total filing costs aren’t clear up front, and the starting price is higher than our top choice, TaxAct.
File your small business taxes with BlockAdvisors »
H&R Block Premium & Business
H&R Block has been one of the giants of the tax preparation industry since they opened back in 1955, and their Premium & Business tax software is a great option for entrepreneurs.
To be honest, we came very close to putting H&R Block Premium & Business in the top spot in this guide, so let’s discuss how it compares to TurboTax Business.
- H&R Block Premium & Business roughly cuts the TurboTax Business prices in half. H&R Block will file your federal return for $79.95, while state returns cost just $19.95. They do however charge $39.95 for each additional state beyond your first one.
- Much like TurboTax Business, H&R Block Premium & Business offers multiple business filings with your purchase. You won’t need to buy this software multiple times for each business you own, which is fairly common.
- H&R Block Premium & Business allows you to import accounting data in a CSV file, but you’ll need to double-check the data manually. It’s just not nearly as convenient as the way TurboTax Business transfers QuickBooks data.
- When it comes to audit defense, every H&R Block Premium & Business customer is eligible for in-person audit support. This means that if you do happen to get audited, they’ll stick by your side through the process. This is a major advantage and nearly tipped the scales for us to place them in the top spot in this guide.
Customer reviews, however, are not really a strong point for H&R Block Premium & Business. They do have quite a few satisfied customers, but also plenty of unhappy customers who complain about the software being glitchy or difficult to use.
Overall, H&R Block Premium & Business does a lot of things right and depending on your preferences it’s absolutely worth considering.
Jackson Hewitt Tax Pro from Home Premier
Best for complex returns needing professional input
Unlike most online tax offerings, Tax Pro from Home, either as a web form or a mobile app, gives you a real, live human being to assist you via telephone or a secure chat channel, for an unlimited number of sessions, rather than leaving you in a do-it-yourself process.
The premise that the company is operating on is that you still want an office visit, but you can’t get there because of the pandemic. “This year, prepare your taxes from the comfort of your own home without the office visit,” says the company.
Jackson Hewitt emphasizes the time savings, the certainty, and the flexibility of the human element.
Pro from Home has three tiers of pricing: Standard, for $69, plus $50 per state return; Deluxe, for $179 plus $50 per state; and Premier for $249 plus $50 per state.
The top tier, Premiere, is the one recommended for small businesses. It adds capabilities for handling complex return situations, such as where there’s more than one self-employed source of income, dividend income, daycare expenses, and all manner of itemized deductions.
The company offers a “lifetime accuracy guarantee,” with reimbursement for penalties and interest in the case of a preparation error; and a “maximum refund guarantee,” refunding the fees plus $100 if another preparer can show you deserve a higher refund.
In addition to the web version, you can use the mobile app for iOS or Android to step through the process.
eFile.com Premium
Best for a low-cost do-it-yourself approach
eFile emphasizes the economy of its approach relative to TurboTax and H&R Block: The Premium edition, which is the one most suited to a business owner, is $39.95, plus $28.95 per state.
The package includes not just straight business income but also investment income, rental property income, and the myriad of income from partnerships encoded in the IRS’s Schedules K-1.
The Premium version offers live assistance via phone, webchat, and email. These are tax support specialists, as the company puts it, not CPAs. The company will also step in with human assistance in the event of an audit.
The software is web-only.View now at eFile.com
Conclusion
Small business tax software is a desktop application for individual or business to do their tax filing online. It can be used for Schedule C, S-corp, partnerships and many other similar small businesses. When you form an LLC, corporation or Partnership it will be much easier to manage your profits and surpluses by filing taxes through tax software like TaxAct.