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Best business tax software for 2021
Find the right small business tax software by comparing these five top picks.
6 best business tax software
Explore the six best business tax software options below for self-employed individuals, freelancers, partnerships and corporations and businesses on a tight budget.
Best for freelancers
- Federal return: $89
- State return: Included Keeper Tax is a two-in-one platform that helps you track and categorize business expenses throughout the year and then file your return each tax season.
Best for accounting
- Federal return: $19.99 to $74.99
- State return: $0 to $39.95
Busy businesses with a long list of income and expenses will appreciate the accounting support from H&R Block. Although not the cheapest option, it provides a range of audit assistance and tools to make sure every transaction is accounted for.
Best for small businesses
- Federal return: $54.95
- State return: $39.95 TaxSlayer is best for small business owners and self-employed individuals who have earned 1099 income and need to file a Schedule C.
Best for tight budgets
- Federal return: $0
- State return: $14.99 FreeTaxUSA is the cheapest tax software for small businesses, but it’s also the most limited. It’s a good option for freelancers and those who don’t need help filing their taxes. But if you need a lot of help during the filing process, you’ll want to explore other business tax software options.
Best for partnerships and corporations
- Federal return: $64.95 to $159.95
- State return: $0 to $50 TaxAct offers several plans designed specifically for partnerships, C-corporations and S-corporations — unlike other platforms that are mainly for self-employed individuals and independent contractors.
- Federal return: $90 to $160
- State return:$0 to $50
While not the cheapest option, TurboTax is the best overall small business tax software thanks to its easy-to-use interface, robust features and helpful tax guides.
How to find the best small business tax software for my business?
The right business tax software for you depends on your business type and how much support you need during the filing process. Consider these major factors when comparing your options:
- Cost. Business tax software can cost anywhere from $12.95 to $200 or more, depending on the platform. Compare your options to find a plan that best fits your budget.
- Integration. Some business tax software don’t integrate with any accounting and business programs, while others like H&R Block or TurboTax do.
- Ease of use. Filing taxes as a business owner is generally more complex than filing as a W2 employee. Pick a software that has built-in tools to help you maximize deductions and offers tax experts to help you when you’re stuck.
- Support options. You’ll find on-demand tax help from companies like TurboTax, TaxSlayer and H&R Block, but others may not have any.
What are the benefits of using a business tax software?
Using a small business tax software to file your return has these benefits:
- Saves time. In most cases, all you need to do is answer yes-or-no questions and the software will fill in your tax forms for you.
- Produces a more accurate return. Many platforms have accuracy guarantees and deduction maximizer tools to help you file an accurate return that minimizes your chances of being audited.
- Cheaper than hiring a CPA. Most small business tax software are cheaper than what you’d pay to hire a CPA or accountant to do your taxes.
What are the drawbacks?
Using a tax software for your business is likely a good idea, but you’ll want to watch out for these potential drawbacks.
- Upselling. Platforms like TurboTax are notorious for upselling you during the filing process, resulting in you paying more to file your taxes than you thought you would.
- Lacks a human touch. Unless you choose a platform that offers help from a tax professional, you may have trouble getting your questions answered if they’re too complex.
- May not be enough. Generally, the bigger and more complicated your business is, the more likely you’ll need help from a CPA who specializes in your business type.
Finding the best small business tax software for your company is the first step in ensuring you have a smooth filing process. Once you’ve found the right one for your situation, pair it with a business accounting software that can give you a holistic view of the health of your business.
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