Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.

Best Tax Software for Small Businesses

Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.

Small business tax software must handle more than personal returns. Depending on your business structure, you may need Schedule C filing, Form 1120-S for S Corps, Form 1065 for partnerships, payroll tax integration, and depreciation schedules. The right software depends on your entity type and complexity.

Top Picks by Business Type

Software	Best For	Federal Cost	State Cost
FreeTaxUSA	Sole proprietors / Schedule C	$0	$14.99
TurboTax Business	S Corps and partnerships	$189 (desktop)	$64/state
H&R Block Business	S Corps and partnerships + in-person option	$149 (desktop)	$49/state
TaxAct Business	Budget S Corp and partnership filing	$124.95	$54.95/state
TaxSlayer	Budget sole proprietors	$64.95	$39.95

Sole Proprietors and Single-Member LLCs

If your business is a sole proprietorship or single-member LLC (taxed as a sole prop by default), you file Schedule C as part of your personal Form 1040. You do not need specialized business software.

Recommended:

FreeTaxUSA ($0 + $14.99/state) — Best value; handles Schedule C for free
CashApp Taxes ($0) — Completely free including state
TurboTax Self-Employed ($139 + $64/state) — Best guidance and integrations

See Best Tax Software for Self-Employed 2026 for detailed comparisons.

S Corporations (Form 1120-S)

S Corp returns require separate business software (not the personal edition). The business return (Form 1120-S) generates Schedule K-1s for each shareholder, which then flow to personal returns.

TurboTax Business (Desktop)

Cost: $189 (includes 5 federal e-files)

Pros:

Handles Form 1120-S with step-by-step guidance
Generates K-1s for shareholders
Depreciation schedules built in
Integrates with QuickBooks
Strong error checking

Cons:

Desktop only (Windows; Mac version available separately)
State returns cost extra
Does not file personal returns (need separate TurboTax for that)

H&R Block Business (Desktop)

Cost: $149 (includes 5 federal e-files)

Pros:

Handles Form 1120-S and generates K-1s
Cheaper than TurboTax Business
In-person support available at retail locations
Good step-by-step guidance

Cons:

Desktop only
Interface not as polished as TurboTax
State returns extra

TaxAct Business

Cost: $124.95 (federal) + $54.95/state

Pros:

Most affordable S Corp filing software
Handles Form 1120-S, 1065, 1120, and 990
Generates K-1s
Available online (not just desktop)

Cons:

Less guidance than TurboTax or H&R Block
Fewer integrations with accounting software
Customer support can be slow during peak season

Partnerships and Multi-Member LLCs (Form 1065)

Partnerships file Form 1065 and distribute Schedule K-1s to each partner. The same business software handles partnerships:

Software	Cost	K-1 Generation	Online/Desktop
TurboTax Business	$189	Yes	Desktop
H&R Block Business	$149	Yes	Desktop
TaxAct Business	$124.95	Yes	Online

C Corporations (Form 1120)

C Corporations file Form 1120 and pay tax at the flat 21% corporate rate. All three business software options (TurboTax Business, H&R Block Business, TaxAct Business) handle Form 1120 filings.

Features to Prioritize

Feature	Why It Matters
Entity-specific forms	Must support your exact business structure
K-1 generation	Required for S Corps and partnerships
Depreciation schedules	Track asset depreciation (Section 179, bonus depreciation)
QBI deduction calculation	The 20% Qualified Business Income deduction for pass-through entities
Payroll integration	Import payroll data from QuickBooks, Gusto, or ADP
Multi-state filing	If you operate in more than one state
Prior year import	Import last year’s return data for consistency
Accounting software integration	QuickBooks, Xero, or Wave integration reduces manual entry

When to Hire a CPA Instead

Software works well for straightforward small businesses, but consider a CPA if:

Your business has revenue over $500,000
You have complex multi-state operations
You are considering entity structure changes (LLC to S Corp)
You have international transactions or foreign accounts
You are undergoing an IRS audit or have received notices
You want proactive tax planning, not just compliance

A CPA typically charges $500–$2,000 for a small business return, but the tax savings from strategic planning often exceed the cost.

Find a CPA Near You | How to Find a Good CPA: Interview Questions and Red Flags

Key Takeaways

Sole proprietors should use personal tax software with Schedule C support — FreeTaxUSA ($14.99) or CashApp Taxes ($0) offer the best value
S Corps and partnerships require separate business software — TurboTax Business ($189), H&R Block Business ($149), or TaxAct Business ($124.95)
All business software options generate the required K-1 forms for shareholders and partners
Integration with accounting software (QuickBooks, Xero) saves significant data entry time
Consider hiring a CPA once your business complexity exceeds what software can efficiently handle

Next Steps

Sole proprietor? See Best Tax Software for Self-Employed 2026
Review the complete Small Business Tax Guide: Deductions, Deadlines, and Filing for deductions and deadlines
Compare personal tax software at TurboTax vs H&R Block vs FreeTaxUSA 2026
Check Tax Filing Deadlines 2026: Every Important Date — S Corp and partnership returns are due March 15
Get professional help at Small Business Tax Services or Find a CPA Near You