As a small business owner, it’s important to be prepared for tax season. Doing taxes as a small business owner can be fairly complicated, but it’s important to stay up-to-date on your taxes as it will help you maximize your returns and can help you qualify for a small business loan.
Fortunately, there are several great tax software services to help you file your small business taxes as accurately and efficiently as possible. Choosing the best tax software, though, can be challenging. There are so many options on the market, making it difficult to find the right one for you.
Filing taxes as a small business owner isn’t the same as filing as an individual. Unlike the average worker, small business owners have to pay estimated taxes.
To help you choose the best tax software, we’ve compiled a list of the best tax software available for small businesses.
What is Tax Software?
It is a computer program that helps individuals and businesses easily file their state and federal tax returns. These services will help you maximize your deductions, can help protect against being audited, and will ensure that you get through the tax filing process as quickly as possible.
The Best Tax Software
There are a number of both free and paid tax software programs available. Each option offers different features to help fulfill the needs of individuals in different circumstances. As such, it’s important to be thorough when searching for tax software.
It’s important to compare the features offered by each one to ensure that the software you choose meets your needs. Each program has different benefits and drawbacks that you should be aware of.
Below are five of the best tax software services available for small business owners.
As one of the most recognizable names in the tax preparation service industry, TurboTax is one of the best tax software options for small businesses. This is a particularly good option if your business uses QuickBooks as you can import your data directly into TurboTax.
TurboTax also excels in helping small business owners easily find deductions. This software will also help you check for errors, support you in case you are audited, and more.
TurboTax Business is ideal for partnerships, S corporations, C corporations, multi-member LLCs, trusts, and estates. Pricing for this product starts at $169.99.
For sole proprietors, TurboTax Self-Employed will help you quickly and accurately file your taxes, find deductions, and track expenses. TurboTax Self-Employed starts at $119.99.
2. H&R Block
H&R Block is one of the leading tax software providers and offers one of the best tax software services available for small businesses.
H&R Block Self-Employed will help you find industry-specific deductions and supports necessary tax forms, such as Schedule 1040, Schedule 1040A, W-2s, 1099s, Schedule C, and more. You will also get access to the Stride app to help you track expenses, receipts, and mileage.
H&R Block Self-Employed starts at $104.99. State filing is available at an extra $39.99 per state.
TaxAct is the best tax software for independent contractors looking for an affordable tax preparation solution.
TaxAct Self-Employed+ starts at just $77.95. This service will help you maximize your deductions, easily import tax forms, provides year-round support, and reduces your audit risk with TaxAct alerts.
TaxAct Business is also available for sole proprietors, partnerships, C corporations, and S corporations for $69.95. TaxAct Business will simply ask you a few interview questions and automatically calculate and enter your data into the necessary tax forms.
TaxSlayer offers the best tax software for sole proprietors that need to file Schedule C.
TaxSlayer Self-Employed starts at just $47 and allows sole proprietors to easily prepare their 1040 and Schedule C forms. Though, if you operate a corporation or partnership, you will not be able to file your taxes with TaxSlayer.
Like other services, TaxSlayer allows users to import data, offers audit assistance, and provides great customer support. However, this service only allows you to file one federal tax return.
Despite its drawbacks, TaxSlayer’s low price makes it a great option for self-employed professionals.
5. eSmart Tax
eSmart Tax is a very capable online tax software service for small business owners.
At $69.95, eSmart Tax Premium is slightly more expensive than TaxSlayer but is still one of the most affordable options available. State returns are available for an additional $36.95.
Like TaxSlayer, eSmart Tax is not suited for corporations or partnerships but is great for sole proprietors. This service supports Form 1040, Schedule C, Schedule E, Schedule F, and other personal tax forms.
This software provides great customer support, audit assistance, and an effective deduction finder. It also allows you to import data from competing tax software providers.
How to Choose the Best Tax Software for Your Business
Ultimately, choosing the best tax software for your business comes down to your personal filing needs.
Self-employed individuals will likely find everything they need with cheaper services, like TaxSlayer or TaxAct. However, corporations and other business entities may need to opt for more expensive products like TurboTax Business.
It’s important to choose a service that will make it easy to transfer your accounting data, import tax documents, find deductions, check for accuracy, and that provides audit assistance.
You should carefully consider your needs, such as what forms you tax forms you need, before choosing a tax software.
Each of the five options listed above offers several great features, but the right one for you depends on your specific circumstances.
Get Ready for the Tax Season
Finding the best tax software for your business will ensure that you can easily stay up-to-date with your taxes throughout the year.
By evaluating your business’ needs and reviewing the features offered by the services listed in this article, you can find the perfect tax preparation service for your business.
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