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Taxes
Best Tax Software For Small Business

Advertiser Disclosure Updated: Apr 16, 2024, 7:58am

Best Tax Software For Small Business Of April 2024

Kemberley WashingtonCertified Public Accountant

Kemberley Washington is a tax journalist and provides consumer-friendly tax tips for individuals and businesses. Her work goes beyond tax articles. She has been instrumental in tax product reviews and online tax calculators to help individuals make informed tax decisions. Her work has been featured in Yahoo Finance, Bankrate.com, SmartAsset, Black Enterprise, New Orleans Agenda, and more. She frequently appears on NBC's WDSU news broadcast.

Kemberley Washington

Kemberley WashingtonCertified Public Accountant

Certified Public Accountant

Kim Portereditor

Kim Porter began her career as a writer and an editor focusing on personal finance in 2010. Since then, her work has been published everywhere from Forbes Advisor to U.S. News & World Report, Fortune, NextAdvisor, Credit Karma, Bankrate, and more. Connect with Porter on LinkedIn or check out her tweets at @kimsavesmoney.

Reviewed

Kim Porter

Kim Portereditor

editor

Reviewed

Updated: Apr 16, 2024, 7:58am

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

Note: The deadline to file your 2023 tax return was Monday, April 15, 2024.

Taxes can be complicated if you own a small business.

And while you have many online tax software options for your business, you’ll want to choose one that’s user-friendly, inexpensive and provides quality customer service. You should select a product that also can help you find all the deductions you’re entitled to.

Here are our four top software picks for filing a tax return for your business.

Tax Guides for 2024

Show Summary

Best Tax Software for Small Business of April 2024

TaxSlayer Self-Employed: Best Small Business Tax Software For Guidance
TurboTax Premium: Best Small Business Tax Software For Complicated Tax Returns
H&R Block Self-Employed: Best Small Business Tax Software For Ease Of Use
Cash App Taxes: Best Small Business Tax Software For Free Options

BEST SMALL BUSINESS TAX SOFTWARE FOR GUIDANCE

TaxSlayer Self-Employed

Federal Filing Fee

$67.95

State Filing Fee

$44.95

Good for

Value, ease of use, availability of expert help

On TaxSlayer's Secure Website

$67.95

$44.95

Value, ease of use, availability of expert help

Editor's Take

For small business filers who need guidance, our team found TaxSlayer Self-Employedto be the best choice. The platform is easy to use, yet it can handle complicated returns—and we loved having a priority phone line for customer support.

The guided interview option walks you through a step-by-step process to identify your deductions and credits and help you file quickly and accurately. At the same time, we really appreciated that you can customize the level of help you get. If you know what you’re looking for, you can navigate directly to specific tax forms to enter your income and deductions—a much speedier option.

We also found that TaxSlayer Self-Employed had the best price among the big players. One of its biggest advantages is that you can electronically file both your federal return and a state tax return for less than $120. Other programs, such as TurboTax, may charge you almost twice that to file both federal and state tax returns, plus an additional fee if you need tax advice from an expert.

Pros & Cons

Price includes expert tax help to answer any questions you may have
Offers guided experience or option of navigating directly to tax forms

Tax experts have limited training

BEST SMALL BUSINESS TAX SOFTWARE FOR COMPLICATED TAX RETURNS

TurboTax Premium

Federal Filing Fee

$129

State Filing Fee

$64

Good for

Customer service, ease of use

On Intuit's Website

$129

$64

Customer service, ease of use

Editor's Take

As a CPA, I know that even small businesses can have complex tax returns. With that in mind, our team selected TurboTaxfor its unusually great tools that can help you through a challenging filing experience. Unlike other online tax software, TurboTax’s package includes an IRS audit risk assessment, a step-by-step navigation guide and multiple channels for contacting its excellent customer service.

TurboTax is the most expensive tax software we reviewed for small businesses. Even so, we think these features and services may be worth the additional cost if you’re worried your return won’t be accurate or you want to be sure you’re not missing a deduction.

We did find a downside to the product. TurboTax tries to upsell you throughout the tax-filing process with add-on features such as IRS audit representation and identity theft insurance. Many people don’t need these additions, so the pitches can be aggravating while you’re in the middle of preparing your return.

Pros & Cons

A simple, easy-to-use questionnaire helps identify which forms you need for your small business
Great customer service with short wait times

More expensive than comparable products
May try to upsell you throughout the process

BEST SMALL BUSINESS TAX SOFTWARE FOR EASE OF USE

H&R Block Self-Employed

Federal Filing Fee

$115

State Filing Fee

$49

Good for

Ease of use, availability of expert help

Read Our Full Review

$115

$49

Ease of use, availability of expert help

Editor's Take

We found H&R Block Self-Employedto be a great product if you’re looking for an easy-to-use platform but don’t want to pay the higher cost of H&R Block’s main competitor, TurboTax. We loved that H&R Block Self-Employed helps you complete your return by walking you through an interview process that’s similar to working with a tax professional. We also loved that the experience will cost you less than you’d pay with TurboTax.

You can get extra help by working with a tax expert online or in person—for an additional fee.

We did find that H&R Block will market extra services to you, which is a drawback. However, the upsells are pretty light compared to TurboTax.

Pros & Cons

User-friendly online tax software platform
You can choose to work with a tax professional if you need more help—for an additional fee.

Pricier than some competitors

BEST SMALL BUSINESS TAX SOFTWARE FOR FREE OPTIONS

Cash App Taxes

Federal Filing Fee

State Filing Fee

Good for

Free filing

On Cash App Taxes' Website

Free filing

Editor's Take

Our team chose Cash App Taxesas our preferred product for small business owners seeking a completely free filing option. The app doesn’t try to upsell you, so you can rest assured the program will cost you nothing.

Cash App Taxes can work for entrepreneurs because it accounts for all types of tax situations and forms. It provides Schedule SE for self-employment taxesand Schedule C to report profit or loss from a sole proprietorship.

We did find that It doesn’t come with the bells and whistles you’ll get with other tax software providers. But Cash App Taxes won’t leave you completely alone to file your taxes. The program offers limited support through email or chat when you use its online tax platform. If you don’t need much hand-holding and you want to spend as little as possible to file your small business taxes, we think Cash App Taxes may be a good fit for you.

Pros & Cons

Completely free
Won’t try to upsell you throughout the process like its competitors

No phone support options

Summary: Best Small Business Tax Software Of April 2024

Company	Forbes Advisor Rating	Best For	Federal Filing Fee	State Filing Fee	Learn More CTA text	Learn more CTA below text
TaxSlayer Self-Employed	4.5	Best Small Business Tax Software for Guidance	$67.95	$44.95	Learn More	On TaxSlayer's Website
TurboTax Premium	4.3	Best Small Business Tax Software for Complicated Tax Returns	$129	$64	Learn More	On intuit's Website
H&R Block Self-Employed	3.3	Best Small Business Tax Software for Ease of Use	$115	$49	Learn More	Read Our Full Review
Cash App Taxes	3.0	Best Small Business Tax Software for Free Options	$0	$0	Learn More	On Cash App Taxes' Website

The Complete Guide to Small Business Tax Software

What Is Tax Software for Small Business?

Tax software is usually online and makes it easier for you to file your small business tax return from start to finish. Online tax software enables you to input your business income and deductions so that you can submit your tax return to the IRS and state agencies. Small business tax software provides helpful guidance and ensures you take advantage of different tax deductions or credits to reduce your tax liability.

Online tax software also gives you an option to pay any taxes owed or receive your tax refund electronically.

Tax Software vs. Tax Preparer for Small Business

Online tax software providers typically offer a self-employed option where users can file a Schedule C (“Profit or Loss From Business”). Although some online tax software providers offer filing options for more complicated tax situations, such as a partnership or corporate tax return, you may want to hire a certified public accountant (CPA).

A CPA is a licensed accountant who helps business owners keep track of their finances, including taxes and government filings. Hiring a CPA to do your business taxes will generally cost more than using tax software, but typically the accountant can help you with tax planning and strategies all year long.

Who Should Use Tax Software for Small Business?

If you opt to prepare your own small business tax return, it is important to use good tax software. With the ever-changing tax laws, it can be difficult or even impossible to prepare your return otherwise.

One of the advantages of using online tax software is that even if you have little or no tax knowledge, the software can guide you as you complete an accurate tax filing for your business. More importantly, it will ensure your tax return complies with the most up-to-date tax laws.

Another advantage of using online tax software is the time it saves. Using tax software ensures that you’re able to quickly prepare the return without unnecessary steps. Most online tax software will use sophisticated interview-style questions to elicit your information, so that you can understand what’s needed and cut the time it takes to prepare your return.

Pro Tip

Small business owners should leverage accounting and financial apps to help their businesses.

How To Choose the Best Tax Software for Small Business

Forbes Advisor offers several best tax software guides to help you choose the right product for your small business needs. Some aspects you may want to consider, based on your business requirements and comfort level, include:

Fees
Value for cost
Ease of use
Customer service options and quality
Free filing options

After Forbes Advisor analyzes and scores each online tax product, the software is given a star rating. The highest overall is rated as the best within its field.

Bottom Line

If you’re a small-business owner, choosing the best online tax software is essential for making sure your tax return is accurate. Make sure you select the online tax software package that meets your needs. Before committing, get an understanding of the price, ease of use, customer service options and the overall value.

Methodology

We looked at nine popular online tax software providers: Cash App Taxes, eFile.com, FreeTaxUSA, FileYourTaxes.com, H&R Block, TurboTax, Jackson Hewitt, TaxSlayer and TaxAct.

We narrowed our list to four finalists offering the overall best online tax software for small businesses.

To evaluate the four, we created a profile for a small business owner with business income and deductions. We ran the profile’s details through the software and scored each option across four categories: ease of use; quality of customer service; pricing; and help with filing. The scores were used for our final ranking.

Online tax software providers typically offer a self-employed option where users can file a Schedule C, “Profit or Loss From Business.” If you have a more complicated tax situation, such as a partnership or corporate tax return, you may want to hire a certified public accountant (CPA).

Frequently Asked Questions (FAQs)

What are some tax write-offs for small businesses?

Small business owners should claim deductions to reduce their tax liability. Depending on the type of business you own, there are many deductions you may be able to claim, including:

Credit card interest
Education expenses
Travel
Meals
Advertising
Rent
Retirement savings

When must you pay taxes on small business earnings?

Small business owners typically pay quarterly estimated taxes, which may include self-employment tax plus income taxes. Generally, quarterly taxes are due April 15, June 15, September 15 and January 15. If a due date falls on a weekend or holiday, the taxes are due the following business day.

You can use Form 1040-ES, “Estimated Tax for Individuals,” to figure the amount of your estimated taxes.

Can a small business do their own taxes?

Yes. If the business owner uses online tax software, a small business can file its own tax returns without having to pay a professional. Even so, depending on the complexity of the tax return and the business owner’s tax knowledge, it may sometimes be a good idea to seek help from a certified public accountant (CPA) or another tax professional.

How does tax software help small businesses?

Online tax software can help small businesses complete their tax returns quickly. Most of the software is easy to use, provides step-by-step guidance and offers professional tax help. Since you won’t need extensive tax knowledge to use tax preparation software, it may be a good option for small business owners who want to complete their tax returns themselves.

Will I get a tax refund if my business loses money?

It depends.

A small business may experience a net loss if its expenses exceed its revenues. And depending on how a business files its tax return, in some cases, the loss can generate a refund.

For example, let’s say a small business owner chooses to file as a sole proprietorship for the tax year. During the year, he also has income from a part-time job that includes taxes withheld. Since he paid federal income tax throughout the year, the loss on his business may generate a tax refund.

Can I file my small business earnings on my personal tax return?

If you are a sole proprietor, you can include your small business profit (or loss) on your tax return, Form 1040, “U.S. Individual Income Tax Return.” To do so, you would first complete Schedule C, “Profit or Loss From Business,” and report your income and expenses for the taxable year. Next, you would transfer your net profit (or net loss) from Schedule C to Form 1040.

Why are small businesses audited?

The IRS may audit your tax return for several different reasons.

For starters, the IRS uses an internal scoring system to compare your tax returns against the norms for similar tax filings. Your return’s score may suggest a potential audit.

Or the IRS may select your tax return for audit in the event that another related tax return was audited. For example, the return of a business partner or investor may raise questions about transactions included on your tax return.

Next Up In Taxes

Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.

Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.

Kemberley Washington

Certified Public Accountant

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