The best tax software for small businesses depends first on the return your business actually files, because the tax form, not the product name, decides compatibility.
For a sole proprietor or default single-member LLC filing Schedule C, FreeTaxUSA is the lowest-cost choice.
For a partnership, S corporation, or C corporation, TaxAct Business is the strongest all-around do-it-yourself (DIY) option in our editorial opinion.
It supports Forms 1065, 1120-S, and 1120 online and makes the business-to-personal handoff unusually clear.
TurboTax remains a strong choice when guided interviews and the Intuit ecosystem matter more than price.
H&R Block Self-Employed is the better fit when a Schedule C filer wants live tax-pro help included.
TaxSlayer Self-Employed sits in the middle for owners who want more guidance than a bare-bones budget product without paying TurboTax-level pricing.
Last fact-checked: October 1, 2026
This US-focused guide compares tax software for sole proprietors and single-member limited liability companies (LLCs) that report business income on Schedule C, and for partnerships, multi-member LLCs, and corporations that file their own returns.
Prices below were checked on October 1, 2026. On that date, most consumer product pages referred to tax year 2025 returns filed during calendar year 2026.
Best tax software at a glance
| Software | Best for | Returns it is best suited to | Price checked October 1, 2026 | Main limitation |
|---|---|---|---|---|
| TaxAct Business | Partnerships, S corps, C corps, and owners who want online entity filing | 1065, 1120-S, 1120; separate sole-proprietor product also available | 1065 from $159.99 federal; 1120-S and 1120 from $169.99 federal; state extra | Entity filing costs much more than Schedule C software |
| FreeTaxUSA | Cheapest Schedule C filing | Form 1040 with Schedule C; can enter Schedule K-1s received from entities | $0 federal; $15.99 per state | Does not prepare Forms 1065, 1120-S, or 1120 |
| H&R Block Self-Employed | Schedule C filers who want human help included | Form 1040 with Schedule C and supported K-1 entry | $130 federal; $49 per state | Expensive if all you need is a straightforward Schedule C |
| TurboTax Do It Yourself Premium | Guided online Schedule C filing and Intuit users | Form 1040 with Schedule C | $139 federal; state extra | Higher price; not the product for a separate 1065, 1120-S, or 1120 return |
| TurboTax Desktop Business | Windows users filing entity returns | Partnerships, S corps, C corps, multi-member LLCs, trusts, estates | $190; state download sold separately | Windows 11 only and personal return is separate |
| TaxSlayer Self-Employed | Lower-cost guided Schedule C with tax-pro access | Form 1040 with Schedule C | $74.99 federal; $47.99 per state | Does not replace entity-return software for partnerships or corporations |
Prices change during tax season, and state modules, e-filing, expert help, and add-ons can materially change the total.
Use the table to narrow the field, then confirm the full price before you buy.
Start with the return, not the brand
The same phrase, “small business,” covers several different tax jobs.
A freelancer with three 1099-NECs may need only Schedule C inside a personal Form 1040. A two-owner LLC may need Form 1065.
An LLC that elected S corporation treatment may need Form 1120-S. A C corporation needs Form 1120.
That distinction matters more than interface, brand reputation, or a $20 discount.
| Business situation | Typical federal income-tax return | What the software must do |
|---|---|---|
| Freelancer or sole proprietor | Form 1040 with Schedule C | Report business income and expenses inside the personal return |
| Single-member LLC with default federal treatment | Usually Form 1040 with Schedule C | Handle the LLC activity as part of the owner’s individual return |
| Multi-member LLC with default partnership treatment | Form 1065 plus Schedule K-1 for each partner | Prepare the partnership return and generate K-1s |
| S corporation | Form 1120-S plus Schedule K-1 for shareholders | Prepare the entity return, generate K-1s, and support the handoff to personal returns |
| C corporation | Form 1120 | Prepare a separate corporate income-tax return |
A Schedule K-1 reports each owner’s share of a partnership’s or S corporation’s income and deductions for use on the owner’s personal return.
An LLC label by itself does not tell you which tax product to buy. Federal tax treatment does.
A single-member LLC can often use the same Schedule C workflow as a sole proprietor, while an LLC taxed as an S corporation needs an S corporation return.
This is where owners get trapped by product names.
A screen says “Home & Business” or “small business,” the buyer assumes it files a corporation, and only later discovers that the product meant self-employment on Schedule C. A $0 federal return is impressive right up until the business needs Form 1065.
What “easy to use” actually means
Tax software reviews often flatten ease of use into one vague score. That is not useful.
A product can have a polished interview and still leave you staring at a question about basis (an owner’s tax investment in the business), material participation, accounting method, or a K-1 code with no idea what the software wants.
For a small-business owner, ease of use has at least six parts:
- Orientation: Can you tell whether you bought the correct product for your entity and return?
- Input clarity: Is it obvious where to enter a 1099, expense, K-1 item, depreciation figure, or balance-sheet amount?
- Concept clarity: Does the software explain unfamiliar tax language well enough for you to answer accurately?
- Error confidence: Does it help you catch missing data, duplicate income, or inconsistent entries?
- Output clarity: Can you understand where a number came from and inspect the forms or reports when something looks wrong?
- Recovery and support: Can you fix a mistake, amend a return, or reach someone who understands the problem before a filing deadline?
One recurring DIY scene is almost comic until it is your money: you enter a 1099-NEC, then the software asks for “business income,” and suddenly it looks as if the same income is about to be taxed twice.
Another is the owner who enters income and then cannot find business expenses because the interview hides them until a later step.
The software may be working correctly, but the interface has managed to create panic anyway.
The interview is friendly until it asks about basis.
How the six options compare
| Product | Schedule C | 1065 | 1120-S | 1120 | K-1 workflow | Online | Desktop | Human tax help |
|---|---|---|---|---|---|---|---|---|
| TaxAct Business | Yes, through sole-proprietor product | Yes | Yes | Yes | Generates K-1s for entity returns; business/personal bundles can move data into 1040 | Yes | PC download available | Optional expert assist; full service for some entity returns |
| FreeTaxUSA | Yes | No | No | No | Enters K-1s received from partnerships and S corps | Yes | No | Optional Pro Support |
| H&R Block Self-Employed | Yes | No | No | No | Can enter supported K-1 information in the personal return | Yes | No | Unlimited expert help included |
| TurboTax Do It Yourself Premium | Yes | No | No | No | Personal-return K-1 handling depends on supported forms; this is not entity-return software | Yes | No | Paid expert options available |
| TurboTax Desktop Business | No personal Schedule C return as the core use case | Yes | Yes | Yes | Generates entity returns and related K-1s | No | Yes | Technical support included; tax advice is not the same as desktop support |
| TaxSlayer Self-Employed | Yes | No | No | No | Personal-return product; not a 1065, 1120-S, or 1120 creator | Yes | No | Tax-pro access included with the Self-Employed package |
The most important K-1 distinction is easy to miss: creating a K-1 and entering a K-1 are different jobs.
A partnership or S corporation produces K-1s as part of its entity return.
The owners then use those K-1s on their personal returns. FreeTaxUSA can handle the second job, but it does not do the first.
That is why a product can honestly advertise support for “partnership or S corporation income” and still be unable to file the partnership or S corporation return itself.
TaxAct Business: best for entity returns
TaxAct Business is the strongest DIY choice for a small business that must file Form 1065, 1120-S, or 1120.
It offers browser-based entity filing and downloadable desktop PC editions with direct form entry.
It also supports prior-year import, K-1 generation, and business-plus-personal bundles that reduce the awkward handoff between the entity return and the owner’s Form 1040.
Key details
- Best for: Partnerships, multi-member LLCs, S corporations, and C corporations
- Federal return support: Form 1065, Form 1120-S, Form 1120, plus a separate sole-proprietor product for Form 1040 Schedule C
- Online filing: Yes
- Desktop: Yes, downloadable PC editions
- Partnership price: $159.99 federal plus $69.99 per state filed
- S corporation price: $169.99 federal, with state filing extra
- C corporation price: $169.99 federal plus $69.99 per state filed
- Business plus personal bundles: Available for partnerships, S corporations, and C corporations
- Expert help: Available as an add-on; full-service preparation is offered for Forms 1065 and 1120-S
Why TaxAct ranks here
TaxAct does the unglamorous thing exceptionally well: it tells you which business return it is preparing.
Its product pages are organized around Form 1065, Form 1120-S, and Form 1120 rather than burying the form behind a broad “small business” label.
For partnerships, TaxAct can generate and allocate Schedule K-1 items and then import K-1 data into a personal TaxAct return when the owner uses a bundled workflow.
The 1065 product also supports importing a trial balance from bookkeeping software through a CSV (comma-separated values) file.
That saves retyping a clean profit and loss statement and balance sheet into tax software.
The limitation is cost. A partnership return with one state reaches $229.98 before expert help.
A C corporation return with one state costs $239.98, and the S corporation return starts at a higher federal price than the partnership return.
That is still far below many professional-preparation bills, but the DIY savings are meaningful only if you actually understand the questions well enough to file correctly.
Choose TaxAct Business when you need a real entity return and want the clearest online DIY path.
Avoid it for a simple Schedule C if low cost is the priority.
FreeTaxUSA: best budget option for Schedule C
FreeTaxUSA is the best tax software for a sole proprietor, freelancer, contractor, or default single-member LLC whose business activity belongs on Schedule C and whose main goal is keeping filing cost low.
Federal filing is $0, including Schedule C, and a state return is $15.99 as of October 1, 2026.
Key details
- Best for: Freelancers, contractors, sole proprietors, and default single-member LLCs
- Federal return: Form 1040 with Schedule C is supported
- K-1 entry: Partnership and S corporation K-1 information can be entered into the personal return
- Entity-return preparation: Forms 1065, 1120-S, 1120, and 1041 are not supported
- Federal price: $0
- State price: $15.99
- Optional support: Deluxe $7.99; Pro Support $64.99; Audit Defense $19.99
- Platform: Browser based
Why FreeTaxUSA ranks here
FreeTaxUSA removes a common tax-software irritation: charging a premium merely because a taxpayer has self-employment income.
Its free federal product supports Schedule C, depreciation, home-office deductions, business credits, and other forms commonly used by self-employed filers.
The boundary is sharp.
FreeTaxUSA can accept a Schedule K-1 after another product or tax professional has prepared the entity return, but it does not create Form 1065, Form 1120-S, or Form 1120.
That is the creating-versus-entering distinction described in the comparison above.
FreeTaxUSA also reflects a broader lesson from owner discussions: cheap software can still be good software if your return fits the product.
The danger is not the low price but the assumption that “business owner” means every kind of business return.
Choose FreeTaxUSA for Schedule C when price matters and you are comfortable with a mostly self-directed filing process.
Do not choose it to prepare a partnership, S corporation, or C corporation return.
H&R Block Self-Employed: best for Schedule C with expert help
H&R Block Self-Employed is the best fit for a Schedule C filer who wants a guided online product with live tax-professional help included instead of sold as a later upgrade.
The price is $130 for federal filing plus $49 per state.
Key details
- Best for: Sole proprietors and single-member LLC owners who expect to ask tax questions while filing
- Federal return: Form 1040 with Schedule C
- Price: $130 federal plus $49 per state
- Expert help: Unlimited live tax-pro help is included in the Self-Employed Online package
- Tax Pro Review: Available at a higher price
- Platform: Online and mobile access
- Entity-return preparation: This Self-Employed product is not the tool for preparing Form 1065, 1120-S, or 1120
Why H&R Block ranks here
The main reason to pay more than FreeTaxUSA is not another expense category on a screen.
It is access to a person when the question stops being “where do I click?” and becomes “what does this tax question mean in my situation?”
H&R Block says Self-Employed Online includes unlimited expert help and specifically supports Schedule C filers, independent contractors, and sole proprietors.
It also supports users who need to enter partnership or S corporation K-1 information into their personal returns.
The price is the obvious drawback. A federal and one-state filing totals $179 before any higher-tier review service.
If your books are clean, your business is simple, and last year’s return looks almost identical, paying more than 10 times FreeTaxUSA’s one-state cost may buy reassurance rather than necessary capability.
Picture the owner who has already spent two hours on a screen asking about vehicle expenses and then hits a term they genuinely do not understand.
At that moment, included human help can be worth more than a prettier progress bar.
Choose H&R Block Self-Employed when you file Schedule C and expect to use human tax help.
Skip it if your return is straightforward and price is the main criterion.
TurboTax Do It Yourself Premium: best guided Schedule C experience
TurboTax Do It Yourself Premium is the strongest fit for self-employed filers who want a polished guided interview, extensive explanations, and Intuit ecosystem features and are willing to pay for them.
The product page lists $139 for federal filing, with state filing extra.
Key details
- Best for: Freelancers, independent contractors, investors, and rental-property owners who value guided filing
- Federal return: Form 1040 with Schedule C
- Price: $139 federal; state filing is additional
- QuickBooks connection: TurboTax advertises account syncing to help find self-employment deductions, with limited availability and use on a single Schedule C
- Expert options: Expert Assist and Full Service are available at higher prices
- Platform: Online and mobile
- Entity-return preparation: Separate TurboTax business products are required for partnership and corporate returns
Why TurboTax ranks here
TurboTax’s advantage is guidance, not price.
Its self-employed workflow is built around questions rather than requiring the user to start from tax forms.
The Premium product supports 1099-NEC and 1099-K workflows, business deductions, investments, and rentals inside the personal return.
The Intuit connection matters most for owners already living in QuickBooks.
As of October 1, 2026, TurboTax advertises a QuickBooks-linked feature that can help identify Schedule C deductions, although the feature is limited in availability and to one Schedule C.
The drawback is the exact problem users complain about across tax software: the headline price is only one part of the total.
State filing, expert help, refund-payment options, and other add-ons can increase the bill.
The brand also has multiple products with similar business language, so you still have to distinguish TurboTax Premium for Schedule C from TurboTax Business for entity returns.
Choose TurboTax Premium when guidance and Intuit integration are worth paying for.
Skip it if you need a separate corporate or partnership return; “Premium” and “business income” do not mean it prepares one.
TurboTax Desktop Business: best Windows desktop option for entity returns
TurboTax Desktop Business is the best fit for Windows users who prefer installed software and need to prepare S corporation, C corporation, partnership, or multi-member LLC returns.
It costs $190, includes five federal e-files, and sells state downloads separately.
Key details
- Best for: Windows-based owners preparing one or more entity returns
- Entity support: Partnerships and multi-member LLCs, S and C corporations, trusts, and estates
- Price: $190
- Federal e-files: Five included
- State: Sold separately
- Operating system: Windows 11, 64-bit
- Mac support: No; TurboTax Business is Windows only
- Personal return: Separate personal tax software may still be required
Why TurboTax Desktop Business ranks here
TurboTax Desktop Business is broad, established, and explicit about the returns it supports.
It also includes five federal e-files, which can be useful for an owner managing multiple entities.
Its biggest limitation is compatibility with your computer rather than anything in tax law.
The version checked on October 1, 2026 requires 64-bit Windows 11 and does not run on Mac.
One of the most predictable bad purchase stories in business tax software is the owner who spends an hour comparing forms and prices, clicks “buy,” and only then notices that the business edition will not install on their machine.
The second limitation is workflow. An S corporation or partnership return produces K-1 information that must still reach the owner’s personal return.
Desktop Business does the entity side, but it is not a substitute for the owner’s personal tax product.
Choose TurboTax Desktop Business when you want installed Windows software, need entity-return capability, and value multiple federal e-files.
Do not choose it on a Mac or if you expect one product to finish both the entity and personal return automatically.
TaxSlayer Self-Employed: best lower-cost guided Schedule C option
TaxSlayer Self-Employed is a sensible middle choice for a sole proprietor who wants more self-employment guidance and tax-pro access than the cheapest filing tools offer.
It suits owners who do not want to pay H&R Block or TurboTax pricing. The federal price is $74.99, and a state return is $47.99.
Key details
- Best for: Schedule C filers who want guided self-employment support at a mid-range price
- Federal return: Form 1040 with Schedule C
- Federal price: $74.99
- State price: $47.99
- Support: Phone and email support, live chat, Ask a Tax Pro, and access to tax pros with self-employed expertise
- Platform: Online
- Entity-return preparation: Business entity returns are not included in the Self-Employed product
Why TaxSlayer ranks here
TaxSlayer Self-Employed includes extra 1099 and Schedule C guidance plus tax-pro access.
That makes it materially different from simply buying the cheapest version that happens to accept business income.
Its federal-plus-one-state total is $122.98. That is more than FreeTaxUSA but below H&R Block Self-Employed.
The trade-off is straightforward: you are paying for more guided support without moving into full entity-return software.
Choose TaxSlayer Self-Employed when your business belongs on Schedule C and you want tax-pro access at a lower price than the premium guided products.
Do not choose it for Form 1065, 1120-S, or 1120.
What about H&R Block Premium & Business?
H&R Block Premium & Business deserves a look for desktop filers.
The product page lists it at $115, includes one state program, includes five federal e-files, and says the package handles personal and business taxes in one place.
H&R Block also says the product includes unlimited business returns.
The reason it is not one of the six primary picks is transparency.
Its public product page is less explicit about exact entity-form support than TaxAct’s form-specific business pages or TurboTax Desktop Business.
Independent comparisons identify H&R Block Premium & Business as supporting corporate and partnership returns, but a buyer should still confirm the exact federal and state forms required before purchase.
There is also a state e-file wrinkle: as of October 1, 2026, H&R Block says business state e-filing is available only in a limited set of states.
If your business return includes a state filing, check that before treating the $115 price as your real total.
Total cost matters more than the box price
The headline price is rarely the full decision. Small-business filers commonly encounter separate charges for:
- State returns
- State e-filing
- Expert assistance
- Personal-return software
- Audit services
- Extra entities
- Refund-payment options
A few examples at October 1, 2026 list prices show how quickly the numbers diverge.
| Filing scenario | Software cost before optional extras |
|---|---|
| FreeTaxUSA Schedule C plus one state | $15.99 |
| TaxSlayer Self-Employed plus one state | $122.98 |
| H&R Block Self-Employed plus one state | $179.00 |
| TaxAct partnership federal plus one state | $229.98 |
| TurboTax Desktop Business | $190 plus separate state download if needed |
The real question is not “Which product starts cheapest?” It is “What does my complete federal, state, entity, personal, and support workflow cost?”
An S corporation owner can finish the 1120-S and feel done, then realize the K-1 still has to land correctly on a personal Form 1040.
A partnership with three owners has the same handoff problem three times. The entity return is only part of the paperwork.
Online vs desktop
Online tax software solves installation problems and works naturally for Mac users, but desktop products still matter for business returns.
Choose online filing when you want browser access, easy switching between devices, cloud-stored returns, or you use a Mac and the business desktop product you are considering is Windows only.
Choose desktop when you prefer local software, want direct form entry where the product supports it, prepare several business returns under one license, or rely on an established prior-year desktop workflow.
Check platform compatibility first, because it can rule a product out entirely. TurboTax Desktop Business requiring Windows 11 is a good example.
If the software does not run on your operating system, the rest of the feature list is irrelevant.
Bookkeeping import is useful, but do not overvalue it
Business tax software is easiest when the bookkeeping is already clean. An import can save typing, but it cannot decide whether the books are correct.
TaxAct’s business products can import a trial balance from bookkeeping software through a CSV file in supported workflows.
TurboTax Premium advertises QuickBooks-linked deduction finding for a single Schedule C with limited availability.
Other products may import prior-year tax data or selected accounting information.
Before buying based on an integration logo, check exactly what moves:
- Does it connect to QuickBooks Online or QuickBooks Desktop?
- Does it import a trial balance or detailed transactions?
- Does it import prior-year tax files or PDFs?
- Does it move business return data or only personal information?
“Works with QuickBooks” can mean anything from a genuine data bridge to “you can export a report and type from it.”
Details are where integrations go to confess.
Error checking and forms transparency
Beginners want the software to make the forms disappear. Experienced DIY filers often want the opposite once something looks wrong.
Look for software that can show what it calculated, flag missing information, identify inconsistent entries, and let you trace a result back to a worksheet or form.
Error checks are useful, but they are not a substitute for understanding what you entered. Software can detect an impossible field.
It may not know that the perfectly valid number you typed belongs to a different tax concept.
This is especially important for depreciation, shareholder or partner basis, and K-1 items.
It matters just as much for material participation, accounting methods, multi-state activity, and elections.
In these areas, a guided interview starts to require real tax knowledge, often under deadline pressure.
When tax software stops being the right tool
DIY software works best when the business records are organized, the tax treatment is already understood, and the current year resembles a prior return you trust.
The risk rises when the software is teaching you both the tax rules and your own business facts at the same time.
Consider using a certified public accountant (CPA), enrolled agent, or other qualified tax professional when several of these are true:
- You changed entity type or made a tax election and are not sure which return applies.
- You have an S corporation or partnership and do not understand basis, allocations, distributions, or K-1 reporting.
- The books do not reconcile to bank accounts, payroll records, or prior-year balances.
- You have multiple states, foreign activity, unusual credits, complex depreciation, or major asset transactions.
- You are filing late, amending old entity returns, or cleaning up several tax years.
- Partners or shareholders disagree about allocations, capital accounts, compensation, or distributions.
- The software asks questions you cannot answer confidently even after reading the help material.
- You cannot explain where a material number on the return came from.
Typos are easy to catch. The more serious DIY error is a reasonable-looking answer to a tax question you misunderstood.
A prior CPA-prepared return can be a useful map for a stable business, but it is not proof that this year’s facts are the same.
If the business changed materially, last year’s return can lead you to the wrong assumption.
TaxAct vs TurboTax Business for S corporations and partnerships
Choose TaxAct Business when you want online entity filing, clear form-specific pricing, and a business-plus-personal bundle that can move K-1 information into the owner’s 1040 workflow.
TaxAct is also a better fit if you use a Mac and want to stay in the browser.
Choose TurboTax Desktop Business when you prefer installed Windows software, want five federal e-files included, and are comfortable handling the personal return separately.
The practical difference is workflow more than brand. TaxAct makes the entity-to-personal connection more explicit.
TurboTax Desktop Business is stronger for a traditional desktop process and multiple federal business e-files.
FreeTaxUSA vs TaxSlayer for self-employed filers
Choose FreeTaxUSA when price is the dominant factor and your Schedule C is straightforward enough that you do not expect heavy tax-pro involvement.
Federal filing is free, and one state costs $15.99.
Choose TaxSlayer Self-Employed when you want more self-employment guidance, priority support, live chat, and access to tax professionals.
Its federal-plus-one-state price is much higher than FreeTaxUSA, but it is still below the H&R Block Self-Employed total.
Neither is a substitute for software that prepares Form 1065, 1120-S, or 1120.
H&R Block vs TurboTax for Schedule C
Choose H&R Block Self-Employed when live expert help included in the package is the deciding feature.
Choose TurboTax Premium when the guided interview, Intuit ecosystem, and QuickBooks-linked Schedule C features matter more.
At October 1, 2026 list prices, H&R Block Self-Employed is $130 federal plus $49 per state, while TurboTax Premium lists $139 federal with state additional.
The difference is small enough that support model and workflow should matter more than the federal sticker price.
A buyer’s checklist before you pay
- Write down the exact federal return you need. Do not write “LLC.” Write Schedule C, Form 1065, Form 1120-S, or Form 1120.
- Confirm whether the product prepares that return or merely accepts information from it. K-1 generation and K-1 entry are not the same feature.
- Check your state return. Verify that the state entity return exists and that e-filing is supported if you need it.
- Calculate the complete cost. Add up the federal software, state modules, and state e-file fees. Then add personal-return software, expert help, and any second entity.
- Check the operating system. Do this before purchase, especially with desktop business products.
- Check how business and personal returns connect. If the entity creates a K-1, find out whether it transfers automatically or must be re-entered.
- Verify bookkeeping import details. Confirm the exact accounting product, file type, and data that can be imported.
- Check prior-year continuity. Find out whether the product imports last year’s tax file, carries depreciation and other data, or simply reads a PDF.
- Decide how much tax help you need. Technical support can fix a login or screen problem. Tax advice is a different service.
- Know your stop point. If you cannot explain a material answer the software is asking for, get professional help instead of guessing before the deadline.
How this guide was built
This is a research-based comparison, not a claim that every product was independently installed and tested.
Prices, form support, platform limits, support options, and state-filing details were checked against official product documentation.
IRS material was used for the distinction between Schedule C, Form 1065, Form 1120-S, and Form 1120.
Independent comparison pages were used as a cross-check rather than as a substitute for product documentation.
Community discussions were used to identify recurring owner problems such as wrong-product purchases, duplicate-income anxiety, hidden expense screens, and Mac and Windows conflicts.
They also surfaced K-1 confusion, unclear total pricing, and the point where DIY filing becomes more stressful than useful.
The product order is editorial and decision-based rather than the output of a numerical scoring formula.
Frequently asked questions
What is the best tax software for a small business?
It depends on the return.
TaxAct Business is the strongest DIY choice for separate entity returns, while FreeTaxUSA is the low-cost choice for Schedule C. See “Start with the return, not the brand.”
What is the best tax software for an LLC?
It depends on the LLC’s federal tax treatment.
A default single-member LLC often uses Schedule C, a multi-member LLC may file Form 1065, and an LLC taxed as an S corporation files Form 1120-S.
See the return table in “Start with the return, not the brand.”
Can FreeTaxUSA file small-business taxes?
Yes for Schedule C on an individual Form 1040, but no for separate Forms 1065, 1120-S, or 1120.
FreeTaxUSA can enter K-1 information after the entity return has been prepared elsewhere. See “FreeTaxUSA: best budget option for Schedule C.”
Can TurboTax file an S corporation return?
Yes, but not with the personal Premium product.
TurboTax Desktop Business supports S corporation returns, and TurboTax also offers business expert products for supported entity returns.
See “TurboTax Desktop Business: best Windows desktop option for entity returns.”
Can tax software file Form 1065 for a partnership?
Yes. TaxAct Business and TurboTax Desktop Business both prepare Form 1065 and generate Schedule K-1s for partners. See “How the six options compare.”
Do I need separate software for business and personal taxes?
Often, yes.
Schedule C belongs inside the personal Form 1040, but a partnership or S corporation files an entity return first and then passes K-1 information to the owners, and bundles can reduce that handoff.
See “Total cost matters more than the box price.”
What is the cheapest tax software for a sole proprietor?
FreeTaxUSA, among the products compared here: $0 federal and $15.99 per state as of October 1, 2026. See “Total cost matters more than the box price.”
What tax software works with QuickBooks?
TurboTax Premium, with limits: as of October 1, 2026, it advertises QuickBooks-linked Schedule C deduction finding with limited availability, while TaxAct business products can import a trial balance by CSV file.
See “Bookkeeping import is useful, but do not overvalue it.”
When should I use a CPA instead of tax software?
When several warning signs apply, such as an entity return, basis, or allocations you do not understand.
If you cannot verify a material answer, software speed is not a useful advantage. See “When tax software stops being the right tool.”
Final verdict
The best tax software for small businesses is the product that matches the business’s tax treatment and required return before it wins on price, interface, or brand familiarity.
Use FreeTaxUSA for a cost-focused Schedule C. Use H&R Block Self-Employed when a Schedule C filer wants included expert help.
Use TurboTax Premium when guided filing and the Intuit ecosystem matter. Use TaxSlayer Self-Employed for a lower-cost guided middle ground.
For Form 1065, 1120-S, or 1120, start with TaxAct Business or TurboTax Desktop Business and compare the complete entity-plus-personal workflow before paying.
- Identify the federal return your business files before you compare products.
- Confirm that the software prepares that return instead of only accepting K-1 information from it.
- Add up the federal, state, personal-return, and support costs before you pay.
Sources
IRS and federal tax-form guidance
- About Schedule C (Form 1040), Profit or Loss from Business
- Single member limited liability companies
- About Form 1065, U.S. Return of Partnership Income
- About Form 1120-S, U.S. Income Tax Return for an S Corporation
- Forms for corporations
- LLC filing as a corporation or partnership
TaxAct
- TaxAct Business tax software
- TaxAct Partnership and LLC taxes: Form 1065
- TaxAct S Corporation taxes: Form 1120-S
- TaxAct C Corporation taxes: Form 1120
- TaxAct business return bundles and sole proprietor product
- TaxAct business state tax pricing
FreeTaxUSA
- FreeTaxUSA pricing
- FreeTaxUSA small-business filing
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