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These tax software programs for small business owners make filing (almost) painless

If you don't go the tax pro route, software capable of tackling complex returns will be your saving grace.
By Haley Henschel  on 
All products featured here are independently selected by our editors and writers. If you buy something through links on our site, Mashable may earn an affiliate commission.

Our Top 5 Picks

TurboTax (opens in a new tab)

Best overall choice

TurboTax is basically the reason why we have to pay to file our taxes, which sucks, but we can't deny the benefits of its conversational guidance and QuickBooks integration.

The Good

  • Maximum Refund/Tax Savings, 100% Accurate Calculations, Audit Support, and Satisfaction guarantees
  • Online Self-Employed package has decent help options (including live support for a fee)
  • Easy to import personal info, including QuickBooks data
  • Lets you prep unlimited employee forms (W-2, 1099s, etc.)
  • Personalized audit assessment with Self-Employed package
  • TurboTax Business package lets you prep returns for multiple companies at no extra cost

The Bad

  • TurboTax Business is only available for Windows/PC
Pros & Cons

TaxAct (opens in a new tab)

Runner-up

It's not as feature-rich as TurboTax and H&R Block, but TaxAct deserves props for its flexible offerings, over-the-phone CPA support, and discounted software bundles.

The Good

  • Maximum Refund, $100K Accuracy, and 100% Satisfaction/Money-Back guarantees
  • Xpert Assist phone support service was free at the time of publication
  • Can import data directly from returns prepped by TurboTax and H&R Block
  • Lets you bundle personal and business tax software for a discount
  • Corporation and partnership software is available online and via download for Windows or Mac

The Bad

  • Could use some plainer, more conversational language
  • No chat support
  • Audit defense sold separately
Pros & Cons

H&R Block (opens in a new tab)

Best for customer support

H&R Block is an industry leader when it comes to customer support, with options for chat, phone, on-demand video, and even in-person help. They'll cost you, though.

The Good

  • Max Refund, Audit Support, 100% Accuracy, and No Surprise guarantees
  • Easy to import personal info
  • Stellar customer support (including in-person help)
  • Refund can be used to pay for tax prep
  • Relatively cheap for corporations, partnerships, and multi-member LLCs
  • Self-Employed package includes six years of tax doc storage
  • Premium & Business package includes free audit support and tool for creating payroll, employer forms

The Bad

  • H&R Block Premium & Business is only available for Windows/PC
Pros & Cons

FreeTaxUSA (opens in a new tab)

Best free filing option for sole proprietors

If your company puts the "small" in "small business" — i.e., you don't have any employees and you make under $73,000 a year — you can probably get away with filing through FreeTaxUSA.

The Good

  • Maximum Refund, Free Federal, and 100% Accuracy guarantees
  • Live chat support
  • Can import prior year info from TurboTax, H&R Block, and TaxAct

The Bad

  • Doesn't round up as many deductions as the competition
  • Jargon-filled FAQ section
  • Virtually no guidance
Pros & Cons

TaxSlayer (opens in a new tab)

Best value for sole proprietors

TaxSlayer lacks the finesse of its more expensive peers, but for relatively simple small business tax situations, it's a solid pick for the price.

The Good

  • Maximum refund, 100% accuracy, and zero out-of-pocket fees guarantees
  • Audit defense included
  • Year-round tax and income tips
  • On-demand tax pro access
  • Real-time refund status
  • Refund can be used to pay for tax prep
  • Quarterly estimated tax payment reminders

The Bad

  • A little clunky
  • Filing process could use more guidance
Pros & Cons

Best deals on tax software this week


As a small business owner, you can handle the occasional logistical hiccup or headache like it's no big deal. It’s basically part of your job description. In fact, the thrill of it all is probably part of the reason why you decided to pursue your own entrepreneurial ideas in the first place. You relish the challenge of doing it all yourself. You’re not just a businessman (or woman) — you’re a business, man(opens in a new tab)(opens in a new tab).

There’s an impressive level of gutsiness associated with small business ownership, one that’s essential to your company’s growth. But research has shown that if there’s one aspect of the gig that intimidates you, it’s getting your shit together come tax season.

Can you do small business taxes yourself?

You sure can, but you may not want to. In the latest edition of its quadrennial survey Small Business Problems and Priorities(opens in a new tab), the National Federation of Independent Business found that four of the 10 “most severe” problems facing modern small business owners were related to doing taxes.

While the 2017 Tax Cuts and Jobs Act has made filing federal returns simpler these days, "many small-business owners still find current rates a burden," the NFIB wrote, calling the complexity of tax compliance and the frequency of changes in tax laws "equally problematic."

Let’s go out on a limb, then, and assume you’re like most small business owners in that you’re perturbed by the idea of doing your business taxes solo. Not only are you daunted by all the complicated paperwork(opens in a new tab) involved and the potential of filing errors, but your busy schedule just doesn’t allow for that sort of drudgery. (Nine to 5 just doesn't exist when you own your own business.)

Enter: tax prep software.

What is tax software?

Tax software is a type of computer program that guides users through the process of preparing and filing their annual returns, helping them comply with tax laws while identifying any relevant deductions and credits. It's the closest thing you can get to hiring a tax advisor without actually splurging on a tax advisor.

Once sold primarily as physical CD-ROMs, the majority of tax software now exists in the form of digital, downloadable programs and mobile apps for on-the-go filing.

Can I file my business taxes with my personal taxes?

For some background, the U.S. Small Business Association's Office of Advocacy(opens in a new tab) says it "generally defines a small business as an independent business having fewer than 500 employees." Whether you're able to combine your business and personal taxes depends on how that business is structured: as sole proprietorship, as a partnership, or as a corporation.

  • A sole proprietor(opens in a new tab) is "someone who owns an unincorporated business by himself or herself," according to the IRS, and they report their business income and expenses on a Schedule C(opens in a new tab) and their self-employment tax on a Schedule SE(opens in a new tab) (provided they've made at least $400(opens in a new tab) from their business). Both go with Form 1040(opens in a new tab), the standard individual tax filing form. TL;DR: You can file everything together.

  • A partnership(opens in a new tab) is defined as "the relationship between two or more people to do trade or business." This kind of company is considered a "pass-through entity," meaning its income and losses are "passed through" to its owners, and they're not legally separate from it. In other words, the business itself doesn't pay any taxes. It will still file Form 1065(opens in a new tab) to declare its financial info, though, as well as provide each owner with a Schedule K-1(opens in a new tab) form. The owners are responsible for reporting any income and losses from their share of their company on their personal tax return and can keep the K-1 for their records. TL;DR: You have to file stuff separately.

  • A corporation(opens in a new tab) is an entity that "conducts business, realizes net income or loss, pays taxes and distributes profits to shareholders," again per the IRS. A standard corporation (classified as a C corporation, or C-corp) is legally separate from its shareholders unlike sole proprietorships and partnerships. This is great because you get some personal liability protection, but not-so-great because you get taxed twice: The company itself pays corporate income taxes on its profits (filed using Form 1120(opens in a new tab)), and each of the shareholders cough up personal income taxes on any dividends paid out. If you're not a fan of that structure and you have less than 100 shareholders, you can file Form 2553(opens in a new tab) within 75 days of the start of the tax year to turn the business into an S-corp(opens in a new tab) — that converts it to the same "pass-through" status as a partnership and spares it from federal corporate taxes. (The company then files Form 1120-S(opens in a new tab) to report its financials, and each shareholder reports their income and losses with their individual return.) TL;DR: You have to file stuff separately.

FYI: These are all extremely basic, "explain like I'm five(opens in a new tab)"-style descriptions of different business structures that don't include every single tax form you'll need for each situation; they're mostly just to give you an idea of what you're in for. Double-check with the IRS(opens in a new tab) for more intel.

Ah, but what if you set up your small business as a limited liability company(opens in a new tab) (LLC)? That legal status gets you the "pass-through" taxation of a sole proprietorship/partnership but the personal liability protection of a corporation (where you're not responsible for any of the company's debts). Single-member LLCs are typically treated as sole proprietorships for tax purposes, while multi-member or co-owned LLCS are taxed like partnerships. However, an LLC can also elect to be taxed like a corporation(opens in a new tab) by filling out some paperwork(opens in a new tab). This usually happens when a company wants to woo investors, offer stock options, and/or access additional tax benefits.

Does my hobby count as a small business?

Whether you tuft colorful rugs or concoct candles in the shape of Shrek's ass, there's a good chance the IRS might consider your hobby a business. It mostly depends(opens in a new tab) on why you do it.

If you're doing something for funsies with no intention of making it your livelihood, it can remain just a hobby. You can still make some money off it, FYI, and if you report that on your 1040, it won't be subject to the 15.3% self-employment tax(opens in a new tab) so long as it's under $400.

You wade into "business" territory — specifically small proprietorship territory — if it seems like you're actively trying to make money off your hobby, which can include advertising and bookkeeping. (If it's your entire livelihood, it's definitely a business.) If this is the case, you'll have file Schedules C and SE. On the plus side, you may be able to claim home office write-offs as a business owner. Hobbyists can't.

What can small business owners write off on their taxes?

While we're on the subject, small business owners can write off a ton of work-related expenses including rent, office supplies, office furniture, mileage, business meals, marketing, startup costs, moving expenses, utilities, education, child care, legal fees, and depreciation — anything that's "both ordinary and necessary" to running your business, per the IRS(opens in a new tab). (Translation: Within reason.) QuickBooks, which is owned by TurboTax's parent company Intuit, has the complete list for 2022 on its website(opens in a new tab).

Is it worth getting an accountant to do your taxes?

As you've probably gleaned from reading the previous paragraphs, filing taxes as a small business owner can be an extremely involved process. Sole proprietors who don't have any employees and make less than $73,000 a year can probably make a free filing program(opens in a new tab) work so long as it offers full support(opens in a new tab) for Schedule C. (We like FreeTaxUSA(opens in a new tab).) But more paid premium software from companies like TurboTax(opens in a new tab) and H&R Block(opens in a new tab) are a much better bet for your standard small business return: They come with better features, simpler walkthroughs, accuracy guarantees, and on-demand support options if you run into issues. Budget for at least $105 for a federal return if you're a sole proprietor, $125 for a federal return if you're a corporation, partnership, or multi-member LLC, and $50 for a state return either way.

If you have especially complex taxes — say, you employ a bunch of independent contractors or fell behind on your bookkeeping — you might as well just pull the trigger on hiring a certified tax pro instead of relying on a computer program. It's a way better value from a financial and administrative standpoint. This is also worth considering if you're unfamiliar with some new tax laws, or this is your first year doing taxes as a small business owner; having one-on-one expert help right out of the gate might make you feel more confident filing solo later on.

For reference, the typical U.S. firm charges an average of $323 for an itemized(opens in a new tab) Form 1040, $220 for a non-itemized Form 1040, $192 for Schedule C, $41 for Schedule SE, $733 for Form 1065, $913 for Form 1120, and $903 for Form 1120S, according to a National Society of Accountants survey(opens in a new tab). Most will also bill you for preparing employees' W-2s ($69.75 on average) and having disorganized or incomplete files ($165.82 on average).

What’s the best tax software for small business owners?

Settle on the DIY route? Here's a deeper dive into the small business-oriented software options we recommend for the 2023 tax season. (Note: All of the following were live in mid-2022.)

Best overall choice
Credit: Turbotax
Specs
  • Federal: $119 to $199
  • State: $49 to $55 each

Intuit's TurboTax(opens in a new tab) is basically the reason why we have to pay to file our taxes(opens in a new tab), so we're a little salty about recommending its products. At the same time, we can't deny the fact that its thorough, conversational guidance and seamless integration with QuickBooks(opens in a new tab) (another popular Intuit product) are especially useful for small businesses.

For sole proprietors, the TurboTax Self-Employed(opens in a new tab) online package ($119 federal, $49 per state) features easy imports from Square and QuickBooks Self-Employed, streamlined Schedule C filing, a free Year Round Tax Estimator tool, a personalized audit assessment, and an industry-specific deduction finder that'll sift through over 500 write-offs for you. It'll also let you prepare unlimited W-2s(opens in a new tab) and 1099s for any employees you have, even if you’re not using payroll. If you want extra help on top of phone/chat support and the TurboTax discussion forums(opens in a new tab), you've got the option of upgrading to TurboTax Live Self-Employed(opens in a new tab) ($199 federal, $54 state) for unlimited tax advice and a final review from an expert.

Small business owners who run partnerships, S-corps, C-corps, or multi-member LLCs should go with TurboTax Business(opens in a new tab) ($170 federal, $55 per state), a downloadable program for PC that comes with its own industry-specific deduction finder, QuickBooks Desktop importing, guidance for real estate rental property activities, and tools for creating unlimited W-2, K-1, 1099-INT(opens in a new tab), and 1099-DIV(opens in a new tab) forms for your employees. This one's an especially good pick for people who run multiple small businesses, as it lets you prep income tax returns for multiple companies (no matter their entity type) for no extra fee.

No matter which software you go with, you'll be protected by Maximum Refund or Tax Savings and 100% Accurate Calculations guarantees.

Runner-up
Credit: TaxAct
Specs
  • Federal: $94.95 to $199.95
  • State: $54.95

TaxAct(opens in a new tab) could use some plainer, more conversational language, an option for chat support, and audit defense that's not sold separately(opens in a new tab), but it has one major thing going for it: Unlike TurboTax and H&R Block, all of its Business(opens in a new tab) software is available both as an online or downloadable product — even its packages for corporations and partnerships. (The only exception is its business software for tax-exempt organizations like churches and political groups, but that's not relevant for our purposes.) Not only that, but the downloadable versions work on both Windows and Mac.

No matter which format you prefer, you'll pay $94.95 for a federal return as a sole proprietor and $124.95 for filing as a partnership, C-corp, or S-corp. With the latter three, you also have the option of bundling some individual TaxAct software with your business product at a discounted rate of $199.95; it would otherwise cost $299.90 if you bought them separately. State returns cost $54.95 apiece no matter your tax situation.

All of TaxAct's Business software comes with support for your relevant tax documents, plus easy importing tools and protection under several guarantees: Maximum Refund, $100K Accuracy, and 100% Satisfaction or Money-Back, respectively, depending on whether you have an online or desktop product. At the time of writing, TaxAct was also giving all of its customers free access to its Xpert Assist(opens in a new tab) service — that'll get you unlimited CPA advice over the phone.

Best for customer support
Credit: H&R Block
Specs
  • Federal: $89.95 to $114.99
  • State: $19.95 to $44.99 each

First time filing? With help available via chat, over the phone, over video, in support forums(opens in a new tab), and even in person(opens in a new tab), H&R Block(opens in a new tab) is an industry leader when it comes to customer support. Most of it comes at a premium, mind you, but it's extremely worth it if you don't feel great about fending for yourself.

Sole proprietors will opt for its Self-Employed Online(opens in a new tab) program ($114.99 federal, $44.99 per state), which comes with ultra-simple income reporting, a year-round expense tracker, six years' worth of cloud storage for your tax documents, and personalized guidance for industry-specific expenses, asset depreciation, tuition, and student loan interest. Live chat and phone support for tech issues are both automatically included; for unlimited access to a tax professional via on-demand chat, screen-sharing, and video, upgrade your package to Self-Employed Online Assist(opens in a new tab) ($194.99 federal, $49.99 per state).

Geared toward the partnership, corporation, and multi-member LLC crowd, its Premium & Business(opens in a new tab) program ($89.99 federal, $19.95 per state) is downloadable tax software with free in-person audit support and a tool for creating payroll and employer forms — everything from 940s to W-2s and 1099s. You can also add on an accuracy review for an extra fee.

If you're truly stuck, scrap the software and bring your paperwork to H&R Block's brick-and-mortar locations. There, you'll be able to meet with a local tax pro who specializes in small business returns (starting at $80).

Whether you go the software or IRL route, all H&R Block customers are protected by its Max Refund, Audit Support, 100% Accuracy, and No Surprise guarantees.

Best free filing option for sole proprietors
Credit: FreeTaxUSA
Specs
  • Federal: $0
  • State: $14.99 each

FreeTaxUSA(opens in a new tab)'s Self-Employed(opens in a new tab) package technically supports all of the common forms for corporations and partnerships, but we wouldn't recommend it for either of those tax situations: It's not capable of hunting down as many deductions as some of the bigger names on this list, nor does it offer as much in the realm of customer help — just live chat and a jargon-y FAQ section.

That being said, it'll probably serve you just fine if you're a sole proprietor who puts the "small" in "small business" — i.e., you don't have any employees and you make under $73,000 a year. (See also: Anyone who just leveled up from "hobbyist" status.) Full support for Schedules C and SE are baked right in there alongside an importing tool and finished return backups. That's pretty much it. At just $14.99 for state returns (federal ones are free), it's definitely a get-what-you-pay-for-style solution — but hey, sometimes you just don't need much.

Best value for sole proprietors
Credit: TaxSlayer
Specs
  • Federal: $59.95
  • State: $39.95

TaxSlayer(opens in a new tab) lacks the finesse of its more expensive peers, but for relatively simple small business tax situations, it's a solid pick for the price. Sole proprietors can file with its Self-Employed(opens in a new tab) program ($59.95 federal, $39.95 per state) for 1099 and Schedule C support​​, with help available over live chat from a tax pro with self-employed expertise. Peace of mind comes in the form of its maximum refund and 100% accuracy guarantees, plus three years' worth of audit defense it throws in at no extra charge. You'll also receive quarterly estimated payment reminders and personalized tax and income tips to help you stay organized outside of tax season.

Anyone filing as a partnership, corporation or multi-member LLC should look elsewhere: TaxSlayer doesn't offer any products for those types of business structures.

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Haley Henschel

Haley is a Mashable shopping reporter based in Chicago. Before joining the team, she covered politics for The Milwaukee Journal Sentinel, wrote about exotic pet ownership for the Wisconsin Center for Investigative Journalism, and blogged for several Jersey Shore stars. In her free time, she enjoys playing video games and hanging out with her parrot (Melon) and dog (Pierogi). You can follow her on Twitter at @haleyhenschel(opens in a new tab) or reach her via email at [email protected](opens in a new tab).


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