People, who want to manage their business, mainly its tax filing aspect, in an efficient way, often opt for the reliable tax software for small business. This way they can save on hiring a tax expert like a CPA or EA and take advantage of e-filing.
So, if you want to be in full control of your business taxes situation, you should give this article a thorough examination and pick decent home and business tax software.
Top 6 Tax Software for Small Business
- Liberty Tax - Small business tax software on a budget
- eFile - The best for self-employed business
- TurboTax - The best for at-home assistance
- TaxSlayer - Economical tax software
- FreeTaxUSA - Budget option
- TaxAct - For partnerships and corporations
Finding small business tax software supplied with all must-have features can be a complicated task because each person has specific requirements and wishes. Anyway, we did our best to test numerous options and narrowed down the choice to the top 6 programs created for efficient managing of your taxing tasks.
1. Liberty Tax
- Double-checking system
- Numerous support options, including chat, email
- Audit assistance is available
- Online-to-office shifting if you got stuck mid-filing
- None found
Verdict: Trying to satisfy a broader range of clients, Liberty Tax offers both offline and online taxing services. This approach seems especially appealing to starting-out businesses, who usually opt for face-to-face contact when it comes to dealing with confusing tax issues.
Working on a transition basis from brick-and-mortal assistance to online help, this service has gained special popularity among small business owners, who can’t afford to pay lots of money for top-tier income tax software.
Once you open Liberty Tax, you’ll notice an uncluttered UI with a set of basic features. The price fully corresponds to the available options. In case, you don’t want to file business taxes online while the physical agencies are out of easy reach, you can choose another program either from cheaper or more expensive category. If you want to write something down quickly, you'd better use one of these note taking apps.
2. eFile
- Calculator systems for quick estimates before filing
- You can get in touch with “Taxpert” support agent
- Free audit assistance
- Unlimited state returns
- Confusing navigation
Verdict: If you’ve got stuck with your taxes managing and need professional help, eFile can become a cool option. This is the best tax software for self-employed users, who have felt the brunt of financial operations and want to deal with them in a trouble-free way. Visit eFile.com Premium if you own a small business and have a solid understanding of the income tax filing mechanism and don’t need an additional explanation of that.
You can make good use of this software if you have a pass-through business and don’t mind following a somehow light-hearted approach to tax filing they offer. The pricing policy is transparent and reasonable, with several major filing features covered. To organize your business, it will be better to use project management software.
3. TurboTax
- Well-designed online UI
- Online version can upgrade for live support from a CPA
- Online version is aimed at self-employed business
- Only Windows downloadable version covers all businesses
- More expensive if compared to similar corporate tax software
- 1065, 1120, and 1120S forms only available for Windows desktop version
Verdict: TurboTax business managing software is initially aimed at small business owners in need of decent tools for filing their taxes and getting professional assistance from a CPA online. It comes with all the necessary tools to cope with the task in a proper way.
Though Turbo Tax is more expensive than similar programs, the price is justified by offered features and responsive customer support. Besides, it is compatible with mobile platforms, which makes it possible to check TurboTax business state on the move. If you have problems with an audit, the software has specific features to make the process more understandable.
4. TaxSlayer
- More affordable for federal tax return
- The self-employed version includes professional tax tips
- Different support options
- All federal filings are free for active-duty military families
- Isn’t available for downloading
- No support for forms 1065, 1120, or 1120S for partnerships and corporations
Verdict: Though TaxSlayer can’t fully compete with the best tax software for small business, like TurboTax, it still offers a number of worthy options designed to simplify the tax filing process. For instance, users can upload their W-2, thus eliminating the need to input the info manually.
TaxSlayer stands out with its 100% accuracy guarantee and ensured max refund. Though it may be inappropriate for some businesses, namely those that have to complete more complex tax returns, it perfectly assists self-employed individuals. All in all, I can confidently call it an ideal variant for a Schedule C filing.
5. FreeTaxUSA
- More than 350 credits and deductions accounted for
- Allows integrating previous tax returns
- Customer support via email
- Tax return backup if you need to print old returns
- You can’t download the software
- No support for partnership or corporation tax preparation
- Not the best support in a free version
Verdict: FreeTaxUSA is a budget-friendly option, which was released in 2001 by CPA firm TaxHawk, Ink. It functions on an online basis, so you can use it directly in your browser. Unfortunately, there is no version to download, which may upset some users.
FreeTaxUSA comes to rescue if you are filing small business taxes for the first time, or work as a freelancer. Here you will find the most necessary features without costly frills. If you are in the state without an income tax, you may enjoy free tax filing.
However, the software turned out to be absolutely useless for high-end businesses. The first reason for this is the absence of many business tax forms. This service also lags behind its competitors when it comes to additional assistance in the process of filing.
The help features and support options call for improvement. It is better to use a password manager to keep your accounts protected.
6. TaxAct
- Full online federal and state taxes for partnerships
- Unlimited free support by phone and email
- Online and desktop versions
- Discounts for bundling personal and business taxes
- Poor audit support
- State forms may not be available for electronic filing
- Only Windows version is available for download
Verdict: If you have prior tax filing experience and are well-aware of tax terminology, this software will perfectly suit you. It is an affordable and intuitive-to-use service with many handy features. For those switching from TurboTax or H&R Block small business software, TaxAct allows importing ready-made 1040, 1040A and 1040EZ forms.
Eric Rosenberg, S-Corp owner and Business Insider contributor, has reported that he faced problems with his Californian tax ID number on TaxAct, so he had to print out and mail his state return instead of filing online. But in most cases, the software works flawlessly.
