Best Tax Software for Small Businesses of April 2024 

8 Best Small Business Tax Services of 2024

Best Overall

H&R Block Self-Employed

See Offers

Vault Verified

Why We Chose It

H&R Block’s Premium and Business tax software makes it easy to prepare and file your small business’s federal and state tax returns. You’ll also be able to track your business expenses and receive one-on-one support via live chat or phone. Read our H&R Block review.

Pros

• Robust features for both small businesses and freelancers 
• Tax return document storage for up to six years
• Guarantees for accuracy, satisfaction and maximum refunds

Cons

• Can be pricey with add-on features and multiple state filings 
• Need to apply for a card or account to get advance on your tax refund 
• Interface is not as easy to use as some of its competitors

Best for Freelancers and Side Hustlers

TaxSlayer Self-Employed

See Offers

Vault Verified

Why We Chose It

TaxSlayer’s Self-Employed version boasts many features to help freelancers, side hustlers and gig workers file their tax returns, including understanding 1099 income and maximizing business deductions. And unlike other tax preparation platforms, you can get customized help from a tax pro for no additional charge. Read our TaxSlayer review.

Pros

• Helpful guidance for self-employed workers
• Quarterly estimated tax reminders throughout the year 
• Support from self-employed tax professional at no extra cost

Cons

• Interface can be difficult to navigate 
• In-house tax experts may not be certified tax professionals 
• Uploading tax forms can be challenging and require extra steps

Best for S Corps and C Corps

TaxAct Business

See Offers

Vault Verified

Why We Chose It

TaxAct Business accommodates tax forms specific to C corps and S corps and reconciles income to import for Schedule M-1s. Plus, the platform will provide a customized view of the forms and schedules required to file in a given tax season. Read our TaxAct review.

Pros

• Editions for all states that require 1120S and 1120C tax forms
• Automatic partner and shareholder allocation for Schedule K-1 items 
• Helps reconcile income for Schedule M-1

Cons

• Can’t import W-2 forms 
• Fewer bells and whistles than competitors 
• Multi-state filings can add up quickly

Best for Integrations

Advertiser Disclosure

Newsweek.com is part of an affiliate sales network and receives compensation through featured partners. This may impact how and where links appear across articles. Newsweek.com does not include all financial companies or all available financial offers.

TurboTax Premium

See Offers

Vault Verified

Why We Chose It

TurboTax Premium integrates with QuickBooks so you can easily bring in data from the popular accounting software. Over seven million businesses use QuickBooks globally, so having a tax prep platform that easily imports can be a boon to seamlessly filing your taxes. Read our TurboTax review.

Pros

• Easily import data from QuickBooks 
• Can auto-import income from 1099s-NECs and 1099-Ks 
• Can spot over 500 business deductions and industry-specific deductions

Cons

• Live expert help can be expensive 
• On the pricier side overall
• Not for corporations or partnerships

Best for Professional Help

Block Advisors

See Offers

Vault Verified

Why We Chose It

If you’d like a bit of guidance and hand-holding from a seasoned pro, Block Advisors gives you access to a small business-certified tax professional for 30% less than the average cost of an accountant. They’re available year-round and can look at the specifics of your small business to make sure you’re getting all the deductions and credits.

Pros

• Tax experts to help with self-employed, S corp, C corp and partnerships 
• Accuracy, satisfaction and maximum refund guarantees 
• Can work with a tax professional in-person or via the H&R Block app

Cons

• Can only use Xero accounting for bookkeeping services 
• DIY option is only offered for self-employed 
• Corporate and partnership help on the pricier side

Best Free Tax Software

Cash App Taxes

See Offers

Vault Verified

Why We Chose It

If you’re looking for the most cost-effective solution for getting your taxes done, Cash App Taxes is entirely free for state and federal returns.

Pros

• For freelancers and gig economy workers with income from W-2s, 1099-NECs and 1099-Ks
• Deposit refund into your Cash App account and get a refund up to six days early  
• Free audit defense

Cons

• Not suited for complex tax situations 
• Limited features 
• Not built for multi-state filings or freelancers who live in different states for part of the year

Best for Beginners

FreeTaxUSA Self-Employed

See Offers

Vault Verified

Why We Chose It

If you’re new to filing your tax returns on your own for your small business, FreeTaxUSA’s Self-Employed version boasts a simple-to-use interface and navigation. If you need clarification during the tax prep process, you can access step-by-step guidance and schedule a call with a tax professional. Read our FreeTaxUSA review.

Pros

• Step-by-step guidance to help you prepare your taxes 
• Free amended tax returns 
• Includes one state return

Cons

• Pro support costs an additional fee 
• For freelancers, not for corporations or partnerships 
• Not designed for foreign employment income or people living outside the U.S. when filing  taxes

Best for Filing End-of-Year Returns

BoomTax

See Offers

Vault Verified

Why We Chose It

If you’re a small business that needs to send out a glut of end-of-year forms—think 1099s, W-2s, and Affordable Care Act (ACA) forms—BoomTax can help you prepare these forms and submit them to the IRS or Social Security Administration (SSA).

Pros

• Affordable pricing for 1099s and W-2s
• Unlimited issuers, recipients
• Unlimited amendments

Cons

• ACA forms require a hefty annual fee plus a fee per form
• Only supports QuickBooks online
• No mobile app

What Is Tax Software for Small Businesses?

Tax software for small businesses is geared toward folks who work for themselves and do taxes on their own. This might include freelancers, gig economy workers, partnerships, LLCs, S-Corps and C-Corps. Tax software helps you punch in your income, credits and deductions to file your annual tax returns to the IRS and state tax agencies. 

A major draw of tax software for small businesses is that it can help you save time and money, and you won’t have to hire a tax preparer. Some tax software can offer access to tax professionals and ensure you’re getting all the business deductions. Plus, you can refer to the information and returns from years prior or export from a different tax software platform. 

Who Needs Small Business Tax Software?

If you’re a small business owner or self-employed, you could benefit from using small business tax software to prepare and file your federal and state tax returns. This software allows you to prepare your returns without paying a tax preparer, which can be significantly more expensive. It also enables you to do taxes from the comfort of your home or business, on your own time. 

When using small business tax software, small businesses need to work with a platform that allows you to file the proper tax forms for your business structure. This includes: 

• Schedule C for sole proprietors 
• Form 1065 for partnerships 
• Form 1120 or Form 1120s for corporations 

Tax Software vs. Tax Preparer for Small Businesses

When deciding whether to go the DIY route with tax software or working with a tax preparer, it’s important to know the advantages and downsides of either option: 

Tax Software for Small Business

• Less expensive. Using tax preparation software for your small business is typically less costly than working with a tax professional such as an accountant, CPA, or EA. 
• More time-intensive. While you might be saving money doing your own taxes, the trade-off is you’ll need to put in the time to file your returns. 
• Prepare taxes on your own time. You can work on your taxes on your own time, save your work, and return to it at your leisure and convenience. If you work with a tax professional, you’ll need to schedule calls to go over your taxes and submit information by their deadline. 
• Customer support. Most tax preparation software offers customer support and even professional tax help. You can lean on them to walk you through the software and answer questions on preparing and filing your tax returns. 

Tax Preparer for Small Business

• Help with complicated tax situations. If you have a more complex tax situation, working with a professional tax preparer can ensure you have a grasp of what’s required of you tax-wise. Plus, it’ll minimize errors and ensure you get the maximum tax refund. 
• Year-round tax advice. Working with a professional to file your small business tax returns can also mean having access to someone throughout the year to answer your tax-related questions and prepare you for the tax season. Some tax software offers professional tax advice but for an added fee. 
• Knowledge of yearly changes. While tax preparation software will have tweaks to the platform according to tax changes, a professional can sit down with you and clue you in on any new federal or state tax deductions, credits or changes to tax laws. Plus, they’ll understand the nitty-gritty of ever-shifting regulations and rules and how they apply to your situation. 

How To Choose A Tax Software For Small Businesses

Narrowing down the right tax software for your small business can be challenging. Here are the main factors to keep in mind when trying to decide: 

• Cost: You might be enticed by the free version, but these have limited features and are typically for those who only need to file a W-2 and take the standard deduction. If you’re a small business, you’ll usually need to file forms such as 1099s available in the paid tiers. Plus, there’s a separate fee to file a state return. 

• Tax forms available: Depending on your business structure and the types of credits and deductions you anticipate taking, you’ll need to file certain tax forms with different filing requirements. Check to see if the tax software includes filing with these forms. 

• Professional support: If you feel more comfortable leaning on tax professionals’ guidance, you’ll want to see what kind of support is available. Some tax software platforms offer this through chatbots and online learning resources, while others feature access to tax experts for an added cost. 

• Ease of use: Whether you’re new to doing it yourself for taxes or have some experience under your belt, seamless navigation and an easy-to-use interface can help ensure a smooth, hassle-free experience. While many tax prep platforms feature exporting returns from previous years, some options are less clunkier than others. 

• Integrations: If your small business uses a lot of integrations, then choosing tax software that includes a full suite of third-party apps and software can make it easier for you to file your taxes. This is particularly important when syncing your bookkeeping and accounting software, such as QuickBooks. 
• Scalability: While you might not need all the bells and whistles this tax season, the needs of your small business will likely shift and evolve as you grow. In turn, tax prep software that offers tiers that can accommodate that expansion can make for a seamless transition. 

• Mobile app: Some tax software offers sophisticated mobile apps that go beyond checking your tax return status. You might be able to work with a tax professional, file your return and check your filing status, all from the convenience of your mobile phone. 

• Customer service: Some customer service teams may only be available via chat or email, while others offer more hands-on support over the phone. The days and hours to contact support can also vary, and there’s usually greater availability during peak tax season. 

• Accuracy guarantee: Some tax software will provide a money-back guarantee if any errors or inaccuracies on your return lead to penalties or fees. The details of the guarantee can vary, but might include reimbursement of any fees or penalties that are incurred, up to a limit. 

• Maximum return guarantee: A tax software company might offer a maximum return guarantee. So if you could’ve received a larger refund or smaller tax liability, the company might refund what you paid to use the tax software. 
• Reviews: Reading customer reviews on trusted sites such as the Better Business Bureau (BBB) and TrustPilot can give you firsthand accounts of what using the tax software is like. Note that customers are usually only prompted to write a review if they have either a negative or positive opinion. But combing through reviews can give you a sense of what you might expect overall.