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 2023
TaxAct - Product Name Only : Best value for sole proprietorsTurboTax - Product Name Only : Best for third-party integrationTax Slayer - Product Name Only : Best budget pick for small businessesH&R Block - Product Name Only : Best for full-service prep
You will see all four of the tax software programs detailed in this article are 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
Methodology
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?
Tax Software for Small Business FAQs
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.
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.
Best Value for Sole Proprietors
TaxAct - Product Name Only
Editor's rating: 4.6/5
| Software | Price | Who it's for |
| TaxAct Self Employed (+ on-demand expert help) | $64.95 for federal return $44.95 per state return | Sole proprietors, single-member LLCs |
| TaxAct Business online | $109.95 for federal return $49.95 per state return | Partnerships, S-Corp owners, C-Corp owners, LLC members |
Pros of TaxAct:
- Cheapest offering
- Includes on-demand expert help
- Platform is straightforward and uncluttered
Cons of TaxAct:
- Cheapest 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 - Product Name Only
Editor's rating: 4.5/5
| Software | Price | Who it's for |
$89 for federal returns $39 per state return | Sole proprietors, partnerships, S-Corp owners, C-Corp owners, LLC members | |
$169 for federal returns $49 per state return | Sole proprietors, partnerships, S-Corp owners, C-Corp owners, LLC members | |
$999 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:
- Pricey
- Expert help requires an upgrade
- Desktop software is limited to Windows users only
Read our full TurboTax review »
Best Small-Business Software Budget Pick
Tax Slayer - Product Name Only
Editor's rating: 4.4/5
| Software | Price | Who it's for |
$59.95 for federal returns $39.95 per state return | Sole proprietors, single-member LLCs |
Pros of TaxSlayer:
- Cheapest 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 TurboTax platform
Read our full TaxSlayer review »
Best for Full-Service Prep
H&R Block - Product Name Only
Editor's rating: 4.3/5
| Software | Price | Who it's for |
$114.99 for federal returns $44.99 per state return | Sole proprietors, single-member LLCs | |
$195 for federal return $44.99 per state return | Sole proprietors, single-member LLCs | |
| Starts at $260 | S-Corp owners, C-Corp owners, partnerships |
Pros of H&R Block:
- Easily import income from Uber
- 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 H&R Block review »