Best Tax Preparation Software for Small Business
Compare the best tax preparation software for small business in 2026: TurboTax, H&R Block, TaxAct, FreeTaxUSA, TaxSlayer, Keeper, FlyFin, and Taxfyle.
Picking tax software for a business is different from picking it for a W-2 return. The filing form changes based on how you're organized (Schedule C for a sole prop, 1065 for a partnership, 1120-S for an S-corp), the price jumps once you cross into business entities, and the software you can actually use narrows fast. Below are eight tax-prep tools a US small business can use today, including major DIY brands and three AI-native options, matched to the filer types they serve best. It is one category in our guide to the best software for small business.
Pricing below is current as of July 2026; tax-software prices reset every season, so verify on the vendor's page before you buy.
Which tax preparation software fits your business at a glance
Use this table to match each product to the filer type it serves best.
| Software | Best for | Federal price (self-employed / business) | State price | Notable | |---|---|---|---|---| | TurboTax | Any entity; files 1120-S and 1065 in-product | ~$139 | Extra per state | Live expert add-on; broad 1099/W-2 import | | H&R Block Self-Employed | Sole props who want the option of an in-person handoff | ~$85 federal | ~$37 per state | Thousands of retail offices as a backup | | TaxAct Self-Employed / Business | Filers who want desktop business software cheaper than TurboTax | ~$110 self-employed; ~$140 business | ~$65 per state | Files 1120-S, 1120, 1065 | | TaxSlayer Self-Employed | Budget 1099 filers who still want a tax pro on call | ~$74.99 | Extra per state | Lowest-price major brand with pro access | | FreeTaxUSA | Sole props on a tight budget | $0 | ~$16 per state | No frills, no phone support on free tier | | Keeper | Freelancers who want an app that finds deductions all year | ~$199/yr | Included in plan | AI scans linked bank/card feeds | | FlyFin | Self-employed filers who want a dedicated CPA doing the return | ~$192–$348/yr | Included in plan | AI plus a human CPA | | Taxfyle | Filers who'd rather hand it off entirely | Quote-based (from ~$200) | Included | Licensed CPA/EA marketplace |
Pricing above is a mix of vendor pricing pages and our own checkout tests. Confirm current pricing on each vendor's page before you buy.
Two things to note before you pick:
- Entity type is a hard filter. If you file Form 1120-S (S-corp) or 1065 (partnership), most consumer tax apps can't help you. Among the DIY products reviewed here, TurboTax Business and TaxAct Business are the options that support S-corp and partnership returns.
- Your bookkeeping upstream matters more than the software. Every tool below imports transactions in some form, whether from a bank account, credit card, 1099, or accounting software. If your business checking is clean and categorized, filing takes an evening. If it is mixed with personal spending, tax software will still require manual cleanup before you can file.
How did we evaluate tax preparation software?
We scored each product on five things:
- Price, including federal, per-state, and any surprise upsells at the end of the interview flow.
- Supported entity types: Schedule C, 1065, 1120-S, 1120, and multi-state returns.
- Ease of use: the interview flow, the visibility of tax forms, and mobile app usability for receipt and 1099 photos.
- Support: whether a human tax pro is included, available as an add-on, or unavailable, plus audit-support terms.
- Integrations: 1099-NEC import, W-2 import, brokerage import, and connections to QuickBooks, Xero, or bank feeds.
We did not score enterprise features (consolidated returns, multi-entity groups) or state-only professional software. If your business is complex enough to need those, you are past the DIY stage and should hire a CPA.
We tested imports with a real business checking account. Products that pulled categorized transactions in bulk and mapped them to Schedule C categories scored higher than products that required manual CSV cleanup.
Top tax preparation software compared
TurboTax (Self-Employed and Business)
TurboTax is one of the best-known DIY tax software brands, and TurboTax Business files S-corp (1120-S) and partnership (1065) returns in-product. That is the single reason most incorporated small businesses end up here.
Strengths: TurboTax uses a guided interview flow, supports many 1099-NEC and brokerage imports, and offers TurboTax Live access to a CPA or EA for an extra fee. Import from QuickBooks Online is native, and pairing it with dedicated accounting software usually means fewer manual entries at filing time.
Tradeoffs: it is the most expensive DIY option in this list, per-state fees stack, and every extra (audit defense, expert review) is a paid add-on.
H&R Block Self-Employed
H&R Block's Self-Employed tier handles Schedule C and imports Uber, Lyft, and common 1099 forms. It also lets you move a return to in-person support at an H&R Block office if you need help.
Tradeoffs: the interview flow is less polished than TurboTax's, and business-entity returns (1120-S, 1065) require H&R Block's separate business product, which is only sold through a tax pro.
TaxAct Self-Employed and Business
TaxAct is the cheaper alternative to TurboTax that still covers business entities. Its downloadable Business product files 1120-S, 1120, and 1065 for less than TurboTax Business. The interview flow is less polished than TurboTax's but still covers the required business forms.
Best for: an S-corp owner or partnership that does not want to pay TurboTax Business prices and does not need hand-holding.
FreeTaxUSA
FreeTaxUSA files federal returns for free, including Schedule C, charging only for state returns. That makes it the lowest-cost option in this list for a sole proprietor or single-member LLC.
What's missing: no phone support on the free tier (chat and email only), no downloadable business-entity products, and a plain interface. If you are comfortable reading IRS instructions and your business has simple Schedule C expenses, FreeTaxUSA is usually the lowest-cost option in this list.
TaxSlayer Self-Employed
TaxSlayer is the lowest-priced major DIY brand with a true Self-Employed tier that includes tax-pro access. If you want a human you can ask a question without paying TurboTax Live prices, this is the pick.
Tradeoffs: no separate business-entity product, so partnerships and S-corps need to look elsewhere. State pricing is on the higher end relative to the federal price.
Keeper
Keeper is an AI-native tax app (backed by Matrix Partners) that automatically scans linked bank and card transactions to find deductible business expenses year-round, then files. It is built for freelancers and 1099 contractors who want deductible expenses identified throughout the year instead of sorting transactions at filing time.
You link your business checking and cards, Keeper flags likely deductions as they hit, and at year-end the same app files your Schedule C. It is not a fit for S-corps or partnerships.
FlyFin
FlyFin is an AI-plus-CPA tax service for the self-employed (backed by Accel) whose plans include a dedicated CPA who prepares and files federal and state returns. The AI does the deduction hunt across linked accounts; a human CPA reviews and signs the return.
Compared with Keeper, FlyFin includes more human tax-prep support because a CPA prepares and files the return. Sole props and single-member LLCs only.
Taxfyle
Taxfyle is a marketplace that matches you with a licensed CPA or EA who prepares your return in their software. Pricing is quoted based on entity type and complexity, and it handles Schedule C, 1065, 1120-S, and 1120.
Best for: a small business that has outgrown DIY and wants a preparer without cold-calling local firms.
How do you pick tax software by business structure?
The single most important filter is what form you file. Consumer tax apps are built around Schedule C. Business-entity returns are a different product line.
Sole proprietor and single-member LLC (Schedule C)
Any product in this guide can file for you. If price is the deciding factor, FreeTaxUSA or TaxSlayer wins. If you want deduction-finding automation, Keeper or FlyFin. If you want a guided interview flow, TurboTax Self-Employed.
Multi-member LLC and partnership (Form 1065)
You need TurboTax Business (Windows desktop only) or TaxAct Business. That is the whole DIY market. If your partnership has more than a few members or nonstandard allocations, hire a CPA. The software handles the mechanics but not the judgment.
S-corp and C-corp (Form 1120-S, 1120)
Same short list: TurboTax Business or TaxAct Business. Payroll gets treated separately (you should already be running reasonable compensation through a payroll provider), and the K-1 that flows to your personal 1040 requires a second filing.
When to stop using DIY software and hire a CPA
Consider handing it off when any of these are true:
- You had a major event: sold the business, took on investors, moved states mid-year.
- You have inventory, depreciation on multiple assets, or a home-office claim you are unsure about.
- Your books are not clean and you do not want to spend a weekend fixing them.
- You made an S-corp election and this is the first year filing 1120-S.
A CPA return typically costs more than DIY software, but the fee may be worth it if the return involves entity filings, depreciation, or multi-state issues. If you are spending twenty hours in software to save a few hundred dollars, the math does not work.
Which tax-prep features matter most for small businesses?
Ignore the marketing pages. These are the features that determine whether tax season takes an evening or a weekend.
Expense and mileage import from bank or card feeds. The single biggest time-saver. Many tools can import tax forms, accounting data, or CSVs, but direct bank-feed and year-round transaction scanning are strongest in Keeper and FlyFin. TurboTax and TaxAct rely more heavily on accounting-software imports.
Quarterly estimated tax calculations. If you are self-employed and made money last year, the IRS expects four estimated payments this year. Software that computes and reminds you (Keeper and FlyFin do this natively; TurboTax generates 1040-ES vouchers) saves you an April underpayment penalty.
Depreciation and asset tracking. Buy a laptop, a vehicle, or equipment and you are either taking Section 179 or depreciating it over years. Business-entity products (TurboTax Business, TaxAct Business) handle this. Consumer Self-Employed tiers handle simple cases; complex asset schedules push you toward a CPA.
State filing coverage and multi-state support. If you have clients in multiple states or moved during the year, per-state fees add up fast. Among the products reviewed here, FreeTaxUSA lists the lowest per-state fee and TurboTax lists among the highest.
Audit defense and accuracy guarantees. Every major brand offers a "maximum refund" or accuracy guarantee that covers penalties if their math is wrong. Audit defense (representation if the IRS writes) is a separate paid add-on almost everywhere. It is cheap insurance if your Schedule C has aggressive deductions.
How does your business bank account affect tax prep?
Every tax product above is only as good as the transaction data you feed it. This is the part most roundups skip.
Why a dedicated business account simplifies Schedule C
If personal and business spending run through the same account, every transaction has to be sorted at year-end. That is the number-one reason DIY filers give up and hire someone. A dedicated business checking account with a card gives you a clean feed of business-only transactions the software can import wholesale. Some owners take this further with sub-accounts that bucket money for taxes, payroll, and operating expenses separately.
A dedicated business account can make those records easier to organize during tax prep.
Exporting transactions and categorized expenses at tax time
Modern business banks let you tag or categorize transactions in-app and export a CSV or push to QuickBooks or Xero directly. When you land in TurboTax or Keeper in April, that categorized export becomes your Schedule C in about ten minutes.
How Novo fits in
Novo business checking has a $0 monthly fee and integrates with QuickBooks and Xero, to help keep transactions categorized ahead of tax season. Novo offers free incoming wires and unlimited ACH transfers on its business checking account, so ACH and wire payments do not add per-transfer fees throughout the year.
The workflow at tax time is straightforward:
- Export a categorized transaction CSV from Novo, or sync directly to QuickBooks or Xero.
- Import into your chosen tax product (TurboTax, TaxAct, Keeper, and FlyFin all accept accounting-software imports).
- Review the Schedule C categories, add anything paid in cash or through another account, then file.
Honest tradeoff: Novo does not accept cash deposits, so cash-heavy businesses need a separate deposit workaround. If you run a cash-heavy business, you will need something like a money order or a secondary account that does take cash, before ACH-ing the funds into Novo. If most of your revenue is ACH, card, or wire, that limitation will not affect you.
How can you build a small-business tax-prep checklist?
If you'd rather have a working spreadsheet than a bulleted list, paste the template below into ChatGPT or Claude and ask it to build the file.
``` Build me a small-business tax-prep checklist as a spreadsheet with these columns: Category | Document or Data Needed | Where to Get It | Status | Notes
Populate rows for a [sole proprietor / single-member LLC / S-corp] filing a [Schedule C / 1120-S] for tax year 2026. Include rows for: 1099-NECs received, 1099-Ks, business bank statements, credit card statements, mileage log, home-office square footage, equipment purchases over $2,500, quarterly estimated tax payments made, health insurance premiums, retirement contributions, and state registrations.
Return it as a downloadable Excel file with a "Status" column that uses a dropdown (Not started / In progress / Done). ```
Swap the entity type and tax year for your situation. Depending on the AI tool and plan you use, you may be able to export the result as an .xlsx file or copy it into a spreadsheet.
User review ratings (Trustpilot)
Trustpilot scores as of July 2026 — click any tool for its current rating.
| Tool | TrustScore | Reviews | | --- | --- | --- | | TurboTax | 1.2 | 1,294 | | H&R Block | 1.3 | 1,483 | | TaxAct | 4.0 | 8,178 | | TaxSlayer | 4.2 | 31,399 | | FreeTaxUSA | 2.6 | 188 | | Keeper | 4.8 | 314 | | FlyFin | 2.6 | 5 (early) | | Taxfyle | 3.0 | 68 |
Frequently asked questions
What is the cheapest tax software for a small business?
FreeTaxUSA is the cheapest option for Schedule C because federal filing is free and state returns are around $16 each. TaxSlayer Self-Employed is the cheapest major brand that includes tax-pro access. For business-entity returns (1120-S, 1065), TaxAct Business is meaningfully cheaper than TurboTax Business.
Can I file an LLC return with consumer tax software?
It depends on how the LLC is taxed. A single-member LLC taxed as a disregarded entity files Schedule C on the owner's 1040, so any Self-Employed tier works. A multi-member LLC files Form 1065, and an LLC that elected S-corp status files Form 1120-S. Those returns require TurboTax Business or TaxAct Business.
Do I need separate software for federal and state?
No. Every product in this guide files both federal and state returns, though state filing is almost always a separate line-item fee. If you owe returns in multiple states, check per-state pricing before you commit, because totals vary widely.
Is free tax software safe for business returns?
Free software can be safe but still insufficient for a complex return. FreeTaxUSA is an IRS-authorized e-file provider and uses the same underlying e-file infrastructure as paid products. Free tiers usually lack phone support and audit defense, which are worth paying for once your return is complex.
When should I switch from software to an accountant?
Switch when the software is answering questions you cannot verify: depreciation elections, S-corp reasonable compensation, multi-state apportionment, or a first-year 1120-S. A CPA fee is often less than the value of your own time spent second-guessing the software.
Disclosures
Novo Platform Inc. ("Novo") strives to provide accurate information but cannot guarantee that this content is correct, complete, or up-to-date. This page is for informational purposes only and is not financial or legal advice nor an endorsement of any third-party products or services. All products and services are presented without warranty. Novo Platform Inc. does not provide any financial or legal advice, and you should consult your own financial, legal, or tax advisors.
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