TAX SOFTWARE FOR SMALL BUSINESS: Best for 2023.

As a small business owner, you undoubtedly have a lot on your plate, and completing your tax return may seem like just one more thing to worry about. The best online tax software, however, can reduce both of those costs in your small business. Also, you can avoid the hassle of communicating with an accountant by using tax software to file your taxes entirely online. If you aren’t a tax expert, don’t panic; in this article, you will understand the best, free, h&r block small business tax software for LLC

What Is Tax Software for a Small Business?

A small business tax preparation software is a desktop, mobile, or internet solution for completing your taxes without hiring a specialist.

You may be able to file taxes for a self-employed business using a Schedule C, as well as taxes that are more complex for a partnership or a corporation, depending on the software that you select. Small business tax software, on the other hand, typically exclusively concentrates on Form 1040, the Personal Income Tax Return, whereas personal tax preparation software typically offers the capacity to prepare taxes for a wide variety of enterprises.

How to Choose Tax Software for Small Business

Here are some inquiries to consider before committing to a specific tax preparation software for your small business:

Cost. Online tax preparation firms generally provide free filing to those who make less than $75,000, have no dependents, and only qualify for the standard deduction and a few other tax credits or deductions. Most business owners will need the a la carte extras that come with more expensive plans. Remember that most small business tax software solutions charge extra to send state income tax forms, so budget accordingly.
Form availability. Form 1040 or Form 1120S relies on your business structure, income, deductions, and tax credits. If you own a small business, you should check the software’s compatibility with the various tax forms you’ll need to file before you begin.
Usability and simplicity. The tax system can be difficult to navigate, and few business owners have the expertise to do so. Certain software packages are better at addressing tax questions and helping you through the procedure in plain English.
Evaluations from past clients. Finding out what others have experienced with the program will help you determine if it’s a good fit for your needs. The Better Business Bureau, Best Buy, and Amazon are just a few dependable places to read customer reviews.
Reliable accuracy. If you are going to pay a software company to handle your tax filing, you should want accuracy. The Internal Revenue Service can impose significant fines for incorrect calculations, so it’s important to find software that comes with a guarantee of accuracy. Learn the specifics of the warranty by reading the tiny print. For instance, TaxAct’s guarantee is limited to $100,000 and applies only to mistakes in the software’s calculations; penalties incurred because of human error are not covered.

Best Small Business Tax Software

All of the above types of software are excellent options for small business owners who need assistance completing their federal and state tax forms.

#1. TaxSlayer Self-Employed

Among the industry leaders, TaxSlayer Self-Employed software had the best combination of features at a reasonable price, making it the top pick for small business tax returns. Tax preparation is simplified, and you may make use of a dedicated phone line and helpful support staff.

However, the amount of assistance you receive is also flexible. You may file your taxes more efficiently and precisely with the help of the guided interview feature. If you don’t need any help getting started, you can go straight to the tax forms where you can input your income and expenses. If you already know what you need, that can be the quickest route to take.

Also, the fact that you can electronically submit both your federal and state return with TaxSlayer SE for less than $110 is one of its main selling points. If you want professional tax help, on top of the $180 it costs to use TurboTax to file federal and state taxes, there are other options.

#2. TaxAct

Since its inception in 2000, online and downloadable tax software vendor TaxAct has helped small business file over 80 million tax returns.

When filing online, business owners must pay $99.95 + $54.95 for each individual state. This includes both sole proprietors (who use Schedule C) and partnerships (who use Form 1065), as well as corporations (who use Form 1120 or 1120s). Downloadable software is required for use by tax-exempt organizations for filing Form 990.

In addition, five federal e-files and one state return are included in the $159.95 price of the downloadable edition for business owners (Windows and Mac. The fee to add on a new state is $60. There is a $200 maximum for combining both household and commercial needs.

The website isn’t quite as professional as some of its larger rivals, but it’s still simple to use and understand. You can call in for tax and technical support with the program if you get stuck. Xpert Assist is a paid service that offers individualized advice over the phone. Email support is offered to customers (without tax advice).

While TaxAct ensures precision and the most refund possible, it does not offer audit defense. You can pay extra for audit help through their third-party partner, Protection Plus, during the tax preparation process. When it comes to doing your own partnership or corporation taxes on a PC or Mac, TaxAct is a great option. Also, read BEST TAX SOFTWARE SOLUTIONS IN 2023

#3. H&R Block

H&R Block is a household name when it comes to filing taxes. Established in 1955, it has assisted in the filing of almost 800,000,000 tax returns. 20 million tax returns were produced by H&R Block for the 2022 tax year, and 8 million taxpayers used H&R Block software or services.

However, H&R Block offers both web-based and downloadable small business tax software

Tax forms for corporations and partnerships, as well as forms tailored to individual employees, are just some of the many possibilities available to desktop users. The $89.95 Premium & Business software from H&R Block, plus $39.95 per state return, is the way to go. If you only need to file a Schedule C, you can save money by using either the $75 Premium Online edition or the $115 Self-Employed Online edition. Each service costs an additional $49 per state. The Self-Employed version is the best online choice if you have a lot of out-of-pocket costs for your business.

The software does a great job of explaining tax scenarios, even the more complicated ones. You may do your taxes from any device with unlimited, whenever-you-need-it assistance from a tax pro by upgrading to Online Assist if you believe you might need it. The Premium plan is $165 per month and the Self-Employed plan is $195 per month, plus $50 per state.

In addition, the small business tax software offers a maximum refund guarantee and an accuracy guarantee of 100%, whether you file electronically or via a downloadable version. There is a promise of audit assistance in both editions. H&R Block is a popular option for many business owners since it can handle a wide variety of tax problems.

#3. TurboTax

When it comes to do-it-yourself tax software, many companies find TurboTax to be a reliable option. Intuit, headquartered in Silicon Valley, was established in 1983 and is the owner of TurboTax. You can use the desktop, web, or mobile versions to complete your tax return.

TurboTax Self-Employed, which includes forms for both personal and business income and expenses, is the best option for most self-employed people who use the online version of TurboTax. It’s $129 total, plus $59 per state, for this version. TurboTax Home & Business is available for $130 for desktop PC users and allows for 5 federal e-files and 1 state tax return. The price of each extra state is $45. If you’re filing taxes for a partnership or company, you’ll need this version.

Furthermore, there’s a reason TurboTax is so widely used. It includes a straightforward design and helpful in-built instructions to get you through tax preparation. However, TurboTax Live is an optional feature that gives you access to a tax professional whenever you need it, including after hours and on weekends. If you’re self-employed, filing your taxes with TurboTax Live will set you back $219 plus $64 per state. Help with your taxes and a review of your return before submission is included. TurboTax offers unlimited product and technical assistance with all of its packages.

TurboTax offers a maximum refund guarantee and a 100% accuracy guarantee regardless of which version you purchase. In addition, for most refunds, customers have access to audit help for three years.

#4. FreeTaxUSA

When compared to other online tax filing services, FreeTaxUSA is incredibly affordable. It was founded in 2001 by TaxHawk, Inc., a legal public accounting firm. The only requirement is a web browser. There isn’t a downloaded version.

While filing your federal return is always free, the Deluxe version (which includes state returns at $14.99 each and an upgrade fee of $7.99) will set you back roughly $22. The Deluxe plan provides access to unlimited amended returns and audit representation in addition to priority help, live chat, and quick phone consultations with a professional. However, filing is absolutely free of charge if you live in a state that does not require a separate state return.

Users of the free edition have fewer options for getting help, which makes it logical given that they aren’t actually paying for the service. The Deluxe Edition includes access to a live chat with priority support from 10 a.m. to 9 p.m. ET, Monday through Friday.

There is a maximum return guarantee and a guarantee of 100% accuracy provided by FreeTaxUSA. If you choose the free version, you can view all federal tax forms without having to spend a dime. FreeTaxUSA could be the ideal option for those on a tighter budget who need to file a self-employed tax return.

#5. Cash App Taxes

If you’re looking for a free option for filing your taxes, Schedule SE for self-employment taxes and Schedule C for reporting business income or loss from a sole proprietorship are both supported by Cash App Taxes.

You may rest easy knowing that Cash App Taxes doesn’t try to force you to upgrade to a paid version.

It lacks TurboTax’s user-friendly interface, comprehensive documentation, and responsive support staff.

However, the Cash App Taxes will not leave you fully on your own to finish your tax return. When filing your taxes online with the software, you can get some assistance via email or live chat.

How Much Does Turbotax Cost for Small Businesses?

TurboTax’s high price tag is its main flaw when compared to its rivals. When compared to the other tax software we looked at, TurboTax has the highest price tag. If cost-effectiveness is crucial, you might have to search elsewhere. TurboTax, on the other hand, offers superior tax preparation software.

If you’re looking for something similar to TurboTax’s user experience at a somewhat lower price, H&R Block is your best bet. If you’re trying to save money, your best options are TaxSlayer and Cash App Taxes.

Full-service TurboTax returns for small businesses are the most expensive option. The average cost is $219, with a range of $409, plus $64 per state. This is still less than you would pay an accountant. Only you can decide if TurboTax’s prices are reasonable for you.

What Tax Form Should a Small Business Use?

The tax filing process might be daunting for a small business owner. It might be difficult to make sense of the myriad of tax forms and their corresponding deadlines and filing requirements. The proprietors of small businesses must also watch out for fines and keep on top of their deductions. Taxes may be, well, stressful for a small company.

Here are some of the tax forms a small business should use.

#1. Form 720

Quarterly, businesses subject to federal excise taxes must submit Form 720. Certain products and services sold by businesses in the United States are subject to an excise tax. Excise taxes are those that must be paid at the time a product is made, as opposed to when it is sold. An excise tax applies to the following items:

Ecological levies
Costs associated with the air and communication industries
Duties on gas
Sales tax on chassis and bodywork (including tractors) for trucks, trailers, and semitrailers.
Tax on passengers traveling via ship (marine transport)
Coal producers’ tariffs

#2. Form 940

Unemployment benefits are given to workers who lose their jobs due to circumstances outside of their control. As an employer, your contribution is tax-deductible and is reported on Form 940. FUTA tax payments are due quarterly, however, Form 940 is only required to be filed once per year.

#3. Form 941

Payroll data including salary, wages, tips, and taxes are reported by businesses on Form 941. The employer’s contribution of Medicare or Social Security tax can also be paid with this form. Form 941 must be filed quarterly by businesses.

Also, communication of wage, tip, and tax withholding data to the appropriate authorities.

Free Small Business Tax Software

Tax payments are never a pleasant experience. This is why finding free tax software for a small business is so exciting. While many businesses do provide free filing for “some” taxpayers, qualifying for this service is highly conditional. Finding the best free tax software for a small business and the best free tax websites may be a bit of a maze. Here are some top free small business tax software.

#1. Avalara

With their tax clearance software, Avalara hopes to aid companies in doing so. Customers of Avalara employ the company’s services because they need help meeting the stringent tax regulations imposed by state, local, and other tax authorities around the world. Sales and use taxes, value-added taxes, excise taxes, and communications taxes are just some of the transaction taxes that may be handled with the help of the Avalara Tax Compliance Suite’s AvaTax, AvaTax Returns, and AvaTax CertCapture.

Also, the package includes tools for determining taxable income, preparing and submitting tax forms, and other record-keeping mandates. There are over 1,200 different kinds of integrations that can be made with various kinds of software. In addition to Tax Advisory Services, Implementation Services, Managed Services, Support Plans, and Training, the company provides Professional Services to assist clients in becoming compliant.

#2. CheckMark

To help businesses like yours save time and reduce the likelihood of errors when completing their 1099 forms with the IRS, CheckMark has developed a robust and user-friendly tax filing software called CheckMark 1099 program. CheckMark 1099 Software allows your small business to handle all of their 1099 reporting needs in one place by supporting a wide variety of 1099 forms, including 1099-NEC, -MISC, -INT, -DIV, -R, and -S forms for IRS filings. You can select the version of CheckMark 1099 Software that best suits your needs, either the paper edition or the electronic file version.

In addition, the platform allows for an unlimited number of entities, beneficiaries, and files, making it simple to handle all of your 1099 reporting requirements in one place. The process of preparing your 1099s can be completed even more quickly and efficiently by importing data from CheckMark Payroll, CheckMark MultiLedger, or a tab-delimited text file. Both Windows and Apple macOS can run the program without issue. CheckMark 1099 Software offers a free trial that allows you to try out all of its features.

This will provide you an opportunity to test out the efficiency and convenience of CheckMark 1099 Software for yourself.

#3. IRS Solutions

Tax professionals can save valuable time while working with the IRS by using IRS Solutions, a comprehensive tax settlement program. An automated software system for handling IRS collection cases, OICs, and notification responses can greatly improve business operations. With IRS Solutions, you can easily manage and expand your tax resolution business. Knowledgeable of the most recent IRS collection and auditing forms and notices, giving you credibility with your clients.

Best Tax Software for Small Business LLC

As a business owner, you should plan your tax strategy so that you pay as little as possible in taxes while taking advantage of all credits and deductions available to you. Find user-friendly tax software for your small business LLC if you don’t want to hire a professional tax preparer. Here is the best tax software for small business LLC.

#1. eSmart Tax

Liberty Tax’s eSmart Tax is an online tax prep software for a small business LLC with a simple interview format. By asking a series of yes/no questions in an interview format, we can assess your financial status and determine the information we need from you to submit your tax return. You can use eSmart Tax to complete and electronically file multiple tax returns at once.

Support is commonly cited as a reason why eSmart Tax isn’t preferred to alternative tax preparation programs. There is a live chat option and email assistance, however, it may take up to three days to hear back from them via email, and the live chat isn’t open around the clock.

In sum, eSmart Tax is the most cost-effective choice for individuals who are familiar with the filing process.

#2. Liberty Tax

Although Liberty Tax’s in-person services are highlighted on the homepage, the company’s e-filing options are also well acclaimed. Liberty Tax, like FreeTaxUSA, claims to be 100% accurate, but unlike FreeTaxUSA, it doesn’t charge extra for personalized care or help in the event of an audit. While not entirely free, Liberty Tax is reasonably priced between $44.95 to $89.95.

If you’re having trouble with Liberty Tax online, you may always visit one of their offices in person. This is a significant benefit that is not provided by all virtual communities. However, it’s possible that Liberty Tax’s ability to switch is due to its outmoded user interface in comparison to the competition. The user interface is certainly usable, however, it may not be to everyone’s liking.

#3. eFile

eFile’s mission is to assist small business owners in filing their taxes at a lower cost than its major rivals. When contrasting itself to competitors like TurboTax and H&R Block, it emphasizes cost savings. Prices range from $29 to $39, which is lower than comparable options. In addition, it has the lowest state return fee ($28) of any major competition, regardless of how many state returns you file.

The problem with eFile is that it mainly stands out from its rivals due to its low prices. When compared to competing business tax filing software, eFile offers few unique features. Unlike TurboTax and H&R Block, eFile provides audit support (but FreeTaxUSA and Liberty Tax do as well). In addition, the eFile interface can feel less natural to use because of its clumsy appearance.

Is Taxslayer Good for Small Businesses?

Yes, Taxslayer is a good software for small business owners. TaxSlayer provides customers with a number of guarantees, including the following: They guarantee that your refund will be accurate 100% of the time and offers a money-back guarantee on this promise. In the event that the program commits any kind of error, the company will reimburse your filing costs as well as any fines or interest charges that you incurred as a result.

Is Taxslayer Better Than Turbotax?

No, Taxslayer is no better than Turbotax. Although TurboTax comes at a premium price, it is the most popular tax preparation software on the market. TaxSlayer is a more compact tax preparation service that provides the same goods at a more affordable price. Also, TurboTax is the ideal option for users who require additional assistance, whilst TaxSlayer is an excellent choice for users who are already knowledgeable about taxes.

Conclusion

You may still feel anxious about filing your taxes as a small business owner, even if you use the best free tax software available. If the thought of filing your own taxes causes you to break out in hives, even with the help of a tax professional, it may be worthwhile to invest in a full-service tax preparation service. To have a tax specialist do your return for you, all you have to do is upload the necessary paperwork.

You may keep more of your hard-earned money by taking advantage of free tax filing if you qualify.

Tax Software for Small Business FAQs

Is H and R Block Worth It?

H&R Block is a good choice if you can afford it. In-person assistance from a tax professional is another benefit of this option. You can begin your tax filing process online and switch to a local H&R Block office if necessary.

What Is a Tax Preparer vs. Tax Software for Small Businesses?

If your tax situation is quite straightforward, you may probably get away with using free tax preparation software. On the other hand, tax preparers are knowledgeable people who have access to complex computing resources.