There are a ton of perks to owning a business. You’re in charge. You might be able to work from home. You might travel the world or meet all kinds of people. But, no matter what type of business you own, you’re building something great from the ground up.
The downside? Taxes.
The good news is there are a ton of software solutions out there to help. If you’re just starting your business or on a tight budget, you can save money with a “do-it-yourself” approach and the right tax software.
Keep in mind, if you’re a larger business, growing quickly, getting audited, or if you’re merging, acquiring, selling, or closing your business, you’ll want to call a CPA for guidance.
What is the Best Small Business Tax Software?
For most small business owners in 2026 there are a number of choices. TurboTax Business can be a smart choice for Corporations and LLCs due to its robust AI features and QuickBooks integration. For freelancers and sole proprietors, TurboTax Self-Employed excels at deduction tracking. H&R Block Premium & Business can be a good alternative for those seeking affordable hybrid support with brick-and-mortar access.
How to Choose The Best Small Business Tax Software for You
While doing your taxes might be complicated, choosing the best tax software doesn’t have to be. Here are some things to keep in mind to help you find the software that works best for your small business.
1. Know what you get for your money.
Paying money for software that’s going to tell you how much more money you have to pay for taxes can be an unpleasant experience. Prices vary among products and tiers (free, standard, premium).
It’s more about value than simply the best price. Higher-priced tax software usually includes additional features, such as 2026 AI-driven support, expanded functionality, and integration with accounting software. Knowing what you need for your type of business ensures you get the best value.
2. Online or desktop?
Many small business tax software packages are available as a download to your computer, or as an online application. Online is cloud-based and can be faster than desktop versions. It also gives you the flexibility to switch among devices (laptop, tablet, phone) as you work on your taxes.
While desktop doesn’t offer the same flexibility, it allows you to maintain data locally without relying on internet access, and screen layouts remain consistent.
3. Look for business tax software for your type of work.
Different forms of business file differently. Sole proprietors, freelancers, partners, and most LLC (limited liability company) members can report their business income or losses on their personal tax returns. Typically, you just need to list your business income and expenses on a Schedule C and include it with your IRS 1040 form.
The process is usually more complex for corporations and some types of LLCs. You will likely have to file separate returns for yourself and the corporation. Ensure your chosen software supports your specific entity type.
4. Make sure it’s easy to use.
Choosing small business tax software that’s easy to use can make filing time much more pleasant. Look for software with an easy-to-navigate interface that breaks your return into manageable steps.
At the same time, ensure the software is rated well for helping you find eligible deductions. Modern software in 2026 often uses AI to scan for missed write-offs, balancing speed with accuracy.
5. Is there an expert in the house?
Given the complexity of tax codes, it is often a good idea to have business tax software that provides access to help.
Many products offer help via live chat, phone, video consultations with CPAs, and email. Consider which type might work best for you and how much it’s worth in terms of time and money.
6. Maximize your cheddar.
Many tax software makers back up their products with accuracy and maximum refund guarantees. Check if the software maker offers an accuracy guarantee and what it covers. For example, will they support you if you accidentally underpay and get audited?
While audits for small businesses are expected to remain low in 2026, it never hurts to be prepared. Some tax software includes professional support to work with the IRS on your behalf.
7. Review the reviews.
It’s a good idea to ask fellow business owners – particularly those in the same line of work – what they use for tax software. Along with that, you can find a wealth of customer reviews and ratings for all major tax software products online.
Tax Software for Small Businesses: TurboTax Business
TurboTax remains a big name in the tax software business. Their small business solution, TurboTax Business, is one of the easiest-to-use and most cost-effective solutions out there. It is designed for:
- Partnerships
- Corporations (S Corp, C Corp)
- Multi-member LLCs
- Trusts and estates
In 2026, TurboTax continues to lead the market with enhanced features and strong user ratings.
Cost
TurboTax offers a variety of solutions for small business owners. We recommend checking their latest offers at the TurboTax website.
Features
- Easy import of last year’s return: The software pulls information from your last return, speeding up the process.
- Improved integration with QuickBooks: TurboTax connects seamlessly to QuickBooks to automatically import and classify income and expenses.
- Enhanced AI-driven deductions: New features utilize AI to suggest tax deductions specific to your industry that you might have missed.
- Free phone support: Business customers can talk to a customer service agent free of charge.
- Support for new businesses: TurboTax can walk you through startup tax deductions so you don’t need to hire an accountant immediately.
- Maximum refund and accuracy guarantees: TurboTax backs up its claim to find every deduction and credit you qualify for.
Tax Software for Freelancers: TurboTax Self-Employed
Self-employed and working solo? TurboTax is still a recommendation to consider.
Cost*
Freelancers and sole proprietors can see prices and offers TurboTax Self-Employed software on their website.
Features
In addition to regular features (e-file, investment support), TurboTax Self-Employed includes:
- Expanded deduction search: The software searches over 500 self-employed tax deductions to maximize write-offs.
- New support options: Access video consultations with CPAs for real-time advice.
- Expense tracking: Integrates with QuickBooks Self-Employed to track expenses via photo receipts.
- One-on-one support: Specialists can guide you by drawing on your screen.
- Double-check: The team checks your tax return before it’s filed to ensure accuracy.
Tax Software for Support: H&R Block Premium and Business
Want a lower-cost solution for tax prep, but still want hands-on support? Try H&R Block. They offer a hybrid of online and in-person support.
Cost
H&R Block offers Premium Tax Software, which is well suited freelancers. For small business owners with complex needs, H&R Block offers Premium & Business software. You can learn more about prices and services on their website. In-person support at brick-and-mortar stores is available for an additional fee.
Features
Their Premium & Business software is geared toward C-corps, S-corps, partnerships, and LLCs. It walks business owners through payroll and employer forms and provides access to a vast network of tax professionals.
Free Small Business Tax Software
Is there free tax software for small businesses?
Yes, but restrictions apply. The IRS Free File Program is a partnership between the IRS and tax partners providing free electronic filing to qualifying taxpayers.
If your adjusted gross income (AGI) is $79,000 or less (2026 threshold), the IRS lets you choose an expert tax partner to help complete your return. If your AGI is above this threshold, the program provides electronic federal tax forms you can fill out and file online for free, though you must prepare the returns yourself.
This is an attractive option for sole proprietors and freelancers who meet the AGI requirement.
Looking for Peace of Mind? Hire a CPA
The right tax software can make doing your return quick and painless. But, no amount of software can give you the same peace of mind as a certified public accountant (CPA).
Professional accountants are helpful if you are structuring a new business (i.e., LLC or corporation) or dealing with complex issues like M&A.
How to find a CPA
- Ask other business owners: Referrals provide honest insight.
- Look for small business specialists: Find a CPA familiar with your specific financial issues.
- Look for field expertise: A CPA who knows your industry can help avoid pitfalls.
- Understand the working arrangement: Determine if you prefer a large firm with resources or a dedicated individual.
Cost
If you’re a sole proprietor with relatively simple tax prep.the cost could be approximately $200 to $800, depending on the status of your bookkeeping and the CPA firm’s pricing structure. Shop around and compare quotes before choosing.
Frequently Asked Questions
Q: Can I deduct the cost of tax software for my small business?
A: Generally, yes. The cost of tax preparation software used for your business is typically considered a deductible business expense.
Q: Is AI-driven tax software safe to use?
A: Yes. Major platforms like TurboTax and H&R Block use AI to identify deductions and anomalies, but the data is secured with bank-level encryption.
Q: When are small business taxes due in 2026?
A: For most calendar-year partnerships and S-corps, returns are due March 16, 2026. For sole proprietorships and C-corps, the deadline is usually April 15, 2026. We have more 2026 tax deadline information here.
Tax Haters, Rejoice!
Just like dealing with mud, major storms, and annoying insects, you don’t have to wait for tax season to roll around to start getting ready. Here at Simply Business, we not only support small businesses with business insurance, we support them with insight and helpful information as well.
We know it’s no small effort to successfully run a small business. We’re here to help you along the way.
Some of it covers taxes, such as “Avoid These 4 Small Business Tax Mistakes.” You’ll also find articles and tools on a wide variety of small business topics like these:
- FREE Facebook Post Templates for Small Businesses
- How to Create an Elevator Pitch in 6 Easy Steps
- The Most Creative and Funny Business Names Out There
- A Guide on How to Get a Small Business Loan
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