It’s always a good idea for small businesses to use a tax platform or service to make filing easier. There are many different free tax software choices on the market that small business owners can use, including H&R Block, TurboTax, and FreeTaxUSA. With plenty of tax platforms on the market, you can choose the one that will best suit your business structure, no matter if you’re an S-corporation, C-corporation, or LLC. This article will explore the various tax services your small business can take advantage of so that you can make the best choice for your company. We will look at the following tax platforms:
- H&R Block
Benefits of Using Tax Platforms
First and foremost, using a tax platform can save your business time and money. Using an online tax service to prepare your filings can be less expensive than hiring an accountant or other tax professional. With a single software purchase, you gain access to all the information you need to file your small business taxes at your convenience. Some platforms even offer free access. If you try to file your taxes without the help of software or a professional, then you may risk paying more or missing opportunities for deductibles. Additionally, you’ll want to avoid IRS audit flags to protect your company. If it’s your first time filing as a small business, seeking help in the form of a tax platform is an excellent start to filing your taxes correctly.
Best Tax Software for Small Businesses
Aside from all of the benefits listed above, using tax software can also save you time as a small business owner with a busy schedule. It’s often even faster than meeting with a tax professional or accountant. You will save time gathering your records and meeting with them by just getting started right away with an online tax service. Some tax programs only take 15 minutes. Of course, it will depend on the size and scope of your business, but rest assured that using one of these tax platforms will save you valuable time that you can use to grow your business instead.
H&R Block has always been a trusted option in the tax preparation world, mainly because their small business tax software has an excellent user experience and covers various tax situations that small business owners might encounter. The straightforward nature of the software makes taxes easy to do the first time. Other reasons small business owners love to use H&R Block include options to upgrade for on-demand assistance, a mobile app where you can upload tax documents, and how the service breaks down complex tax situations. The only cons of using H&R Block’s platform is that business editions are priced higher than competitors.
TurboTax is another excellent tax platform for small businesses. Their downloadable version covers all small business types, including self-employed. If you run into trouble, they offer on-demand support from actual tax professionals so that you can ensure you’re getting the best advice for any questions you may have. TurboTax’s online interface is simple and easy to use, making it a great choice for those hoping to use it for personal and business filings. Though it can be more expensive than other options on the market, TurboTax makes up for that with its great reviews and customer satisfaction. They also offer audit support for three years following most returns, meaning you don’t have to worry about surviving your first small business audit alone.
TaxAct is the best choice for partnerships and corporations because it allows you to file completely online for federal and state taxes. Like some other small business tax resources, TaxAct gives their customers unlimited free support from tax specialists by phone or email. They offer online and downloadable versions, with discounts for bundling your personal and business taxes. If you are the owner of multiple companies, TaxAct might not be the best option for you because you can only file for one business with each copy you purchase. Regardless, TaxAct is an excellent option for small business owners who are looking for tax help. They’ve completed over 80 million tax returns since 2000 and are a trusted tax resource for many small business owners.
TaxSlayer is a wonderful tax software option for self-employed individuals who earn via a 1099 and need to complete a Schedule C tax return. The price point is low, and ratings are high for this online tax platform. The self-employed edition offers access to a tax professional should you need it, along with chat, phone, and email support. One known con of this software is that there is no download version available. Additionally, partnerships and corporations may not find it a valuable service because they don’t offer support for forms 1065, 1120, or 1120S. Overall, TaxSlayer is best for self-employed people or those who get a 1099 tax form for any work they’ve done.
FreeTaxUSA is probably the best price point out of all the other small business tax platforms. Their pricing starts at $0 for federal returns and $12.95 for state returns. If this starting service isn’t robust enough, they offer a low-cost upgrade to their Deluxe Edition, which includes priority support and a live chat feature for users. Unfortunately, they don’t provide support for partnership or corporation tax preparation but are an excellent option for self-employed professionals. They have an A+ rating with the Better Business Bureau and have been operating successfully since 2001. Those who live in a state where no state return is required can file entirely for free, which is great.
Choosing the Right Platform
Deciding on the best online tax platform for your small business is a big decision. These free and low-cost software options can help you file your taxes in a fast and efficient way, flagging deductions you might have otherwise missed and helping you pay accurately. If you are facing a small business tax rate increase or trying to save money, using one of these cost-friendly tax services can be more affordable than hiring an accountant or tax professional.