The tax software you pick for your LLC will depend on your specific needs and preferences, such as business structure and tax requirements.
To help you make a wise choice, we consulted our LLC accountants with over two decades of experience in tax planning.
We tested different small business tax software to evaluate cost, user experience, filing features, expert tax assistance, and customer support.
Here's our honest review of the best tax software you can use for your limited liability company.
Top 5 Tax Software For LLCs (October 2023)
1 - H&R Block
H&R Block is an American tax preparation company that was founded in 1955. The company operates in Canada, the United States, and Australia.
This tax software for small businesses offers a range of tax preparation services to its clients, including online tax preparation services, as well as in-person tax preparation services with tax professionals.
As new users, we were invited to choose from a list of prompts related to our previous year's tax position.
Based on our information, H&R Block matched us with the most appropriate packages.
You can either accept its recommendation or select an alternative product. If you are a returning user, your information from the previous year is autopopulated, making it easy to amend or add new details.
H&R Block also assists clients who have missed the tax deadline or filed an extension and can help explain and resolve IRS notices.
The company's tax professionals will handle all your tax needs and maximize your refunds.
- Free Online ($0 + $0 per state filed) : Includes simple returns for students, unemployment income, W-2 employees, and Child Tax Credit (CTC).
- Deluxe ($55 + $49 per state filed) : Everything from the Free Online package, plus store tax returns for six years, child and dependent care expenses, and itemized deductions.
- Premium ($75 + $49 per state filed) : Everything from Deluxe Online, plus rental business income, investments, and sold cryptocurrency.
- Self-employed ($115 + $49 per state filed ) : Everything from Premium Online, plus rideshare/food delivery drivers, marketplace sellers, and claiming business deductions.
- Easy step-by-step filing guidance
- Access to authentic tax specialists
- Unlimited access to video or chat customer support
- Reliable refund policy
- Audit support services
- Live chat customer service costs extra
2 - TurboTax
TurboTax is a software package produced by Intuit. TurboTax offers various versions, including TurboTax Deluxe and TurboTax Premier.
TurboTax is available for both Windows and Macintosh operating systems and Android and iOS mobile devices.
We appreciate that this online tax software offers a free version for filing LLC taxes, but not all small businesses and taxpayers qualify. The free version lets you submit a Form 1040 [1].
You can also claim the earned income tax credit and child tax credit and deduct student loan interest. TurboTax also offers various paid versions with more features and support.
We found TurboTax's interface design intuitive and user-friendly, and we accessed various human support options.
Users can also do their taxes themselves, have a dedicated tax expert do their taxes from start to finish, or get advice from tax experts who can help them finish their small business taxes error-free.
It's a great perk that TurboTax also offers a Maximum Refund Guarantee, which promises to find every tax deduction and credit you qualify for to boost your tax refund.
- TurboTax ($129) : You get step-by-step, filling in all the right tax forms, upload a photo of your W-2, and a maximum refund, guaranteed.
- Live Assisted ($219) : With Live Assisted, you get expert advice from tax specialists, a professional return review, and a dedicated tax expert who'll handle your business taxes.
- Full Service ($409) : You get all features from the lower plans plus access to experts and CompleteCheck™, which scans your return before submitting it.
- Easy to upload tax documents
- The live program gives access to a tax expert
- Easy-to-use interface
- Reliable tax return lifetime guarantee
- The free version supports basic tax filing only
3 - TaxAct
TaxAct is an American online tax software company based in Cedar Rapids, Iowa. It offers its software package, "TaxAct," to individual tax filers, small business owners, and professional affiliates.
TaxAct provides tax filing software for federal and state tax returns, tax planning tools, and access to tax advice.
We praise TaxAct for being thorough and easy to use. The software provided us with a seamless process and guided us through each filing process step.
TaxAct's products are generally less expensive than similar products from competitors, making it an attractive option for those who need advanced tax software but want to save money.
This tax software for small businesses is a member of the Free File Alliance, a program developed through a partnership between the IRS and private sector tax software companies to provide free federal tax preparation and electronic filing for eligible small business owners.
- TaxAct Free ($0 + $39.95 per state filed) : This plan is suitable for simple filers who need tax advice on unemployment income, student expenses, and retirement income.
- Deluxe Plan ($50.95 + $54.95 per state filed) : This plan is ideal for filers and homeowners who want tax advice on credit deductions, adjustments, childcare expenses, and student loan repayment plans.
- Premium Plan ($74.95 + $54.95 per state filed) : The premium plan is available for investors who want to file capital gains and individuals who own rental properties.
- All paid plans have access to a tax expert
- There is a free federal option
- Efficient document upload or import features
- Professional and personalized support
- Filing multiple state returns is costly
4 - TaxSlayer
TaxSlayer is a privately owned tax preparation and financial technology company based in Augusta, Georgia.
The company offers online tax preparation technology for American consumers and tax experts, allowing them to file their federal and state taxes electronically.
TaxSlayer provided us with step-by-step instructions during our trial, and it also has a 100% accuracy guarantee to take the stress out of tax filing.
This tax software for small businesses has four products available for at-home tax filers and sole proprietors, plus the tools needed to prepare and file federal, state and personal income taxes, and you can get started for free.
TaxSlayer's tax preparation software is designed to be user-friendly and offers a question-and-answer system that guides filers through the tax preparation process.
The software also includes various tax software options to help users prepare and file their taxes accurately and efficiently.
- Simply Free ($0 + state fees) : Simple tax filing like forms 1040, plus one free federal and one state return.
- Classic ($34.95+ state fees) : Includes all forms, deductions, and credits.
- Premium ($54.95 + state fees) : Includes Ask a Tax Pro and live chat, plus skip-the-line email and phone support.
- Self-Employed ($64.95 + state fees) : Includes personal and business income and expenses, 1099, and Schedule C.
- Available IRS audit assistant
- 100% accuracy guarantee
- Available one-on-one tax guidance
- Syncing with banks is restricted
- Lacks certain advanced features
5 - FreeTaxUSA
FreeTaxUSA is an online tax preparation service that allows users to file their federal tax returns for free. However, a cost of $14.99 may be associated with filing state returns.
FreeTaxUSA provides a clean interface and solid support features. It offers an efficient question-and-answer process to guide users through the tax filing.
Additionally, FreeTaxUSA supports various IRS forms and schedules, including Schedule C.
FreeTaxUSA offers optional add-ons for an additional cost. These include unlimited amended, mailed, printed, and professionally bound tax returns.
In our experience, we purchased their Deluxe service add-on for $7.99, which provided priority support, live chat, and other features.
Filers can create an online account and file taxes through the FreeTaxUSA website. However, FreeTaxUSA does not offer a mobile app, and you can be inconvenienced if this feature is a priority.
- Free Tax Software ($0) : This plan offers a maximum refund and free federal return filing. However, it'll cost $14.99 if you add a state return.
- Deluce Return ($7.99) : This plan offers priority support, live chat functions, and unlimited tax amendments.
- Efficient and low-cost
- Live support function
- Free e-file of federal tax returns
- Does not support import of W-2 or 1099 forms
- Lack of features
Advantages of Using Tax Software
Using small business tax software can provide several benefits, including the following:
1. Convenience
Small business tax software allows you to complete the filing process online, eliminating the need to work with an accountant or visit a tax professional in person.
You can file your taxes from the comfort of your own home, saving time and effort.
2. Cost Savings
Using tax software can be more cost-effective compared to hiring a tax professional. Online tax services are often more affordable and can save you money. Additionally, some tax software programs offer free options for simple tax returns.
3. Guidance and Support
Tax software programs provide step-by-step guidance through the filing process, making it easier for non-tax professionals to complete their taxes accurately.
These services walk you through the necessary steps and help you check all the required boxes before filing.
Some software programs offer live support and one-on-one assistance with a tax professional.
4. Record-Keeping
Online tax preparation software typically stores your prior years' information, making it easier to access and refer to when filing in subsequent years. This saves time and ensures consistency in your future tax filings.
5. Accuracy
Tax software can help reduce the risk of errors in your tax return. The software performs calculations automatically, minimizing the chances of mathematical mistakes. This can help you avoid potential penalties or audits due to incorrect filings.
6. Time-Saving
Tax software can save you significant time than manually filling out and mailing your tax return. The software identifies the necessary tax forms and documents you need, streamlining the filing process.
7. Flexibility
Tax software allows you to file taxes at your own pace and schedule. You can start and stop the process as needed, making it convenient for busy LLC owners.
8. Security
Reputable tax software programs prioritize the security of your personal and financial information. They use encryption and other security measures to protect your data.
9. Faster Refunds
Tax software allows you to file your taxes electronically, resulting in faster processing and quicker refunds.
10. Access to Updated Tax Laws
Tax software is regularly updated to reflect changes in tax laws and regulations.
"Using a tax software ensures that you are filing your taxes accurately and in compliance with the latest tax requirements."
- Howard Metro, LLC Attorney
Our Selection Process
We analyzed each tax software on various characteristics to find the best option for small company owners to submit their taxes. Here's a detailed explanation of our selection process.
1. Pricing
One of the most essential considerations was the cost. While some software is cheap and provides free federal filing, we strived to recommend other pricey ones with powerful features for filing large company taxes.
We looked at the pricing per plan and the features you get, such as the option to optimize deductions and credits.
2. Customer Support
Another feature we reviewed during the selection was accessing a tax professional or customer service personnel.
We ensured that all five of the top tax software programs provided assistance through email, chat, phone, or live video.
Our team also tested different tax software to assess whether a company operates ethically and promptly resolves consumer concerns.
3. Features
Regarding tax software, we looked for those that have essential features for comprehensive tax filing.
We purchased different plans from different tax companies and compared their offerings.
The key features we focused on include filing options, document upload and import, platform capability, disbursement options, deductions, and credits.
FAQs
Is Tax Software Deductible?
Yes, tax software is deductible if it is used exclusively for business purposes.
Is Tax Software Easy to Use?
Yes, tax software is easy to use because it is designed to be user-friendly and intuitive. However, it's worth noting that the ease of use can vary between different software options, with some being more user-friendly than others.
What Is the Best Tax Software For Your Business?
Using tax software for an LLC can simplify the tax filing process, save you time and money, and provide guidance and support along the way.
It is, therefore, important to choose a reputable tax software program that meets the specific needs of your LLC, like H&R Block.
H&R Block simplifies tax preparation by guiding users through interview-style inquiries, concise instructions, and comprehensive clarifications for various business income categories, deductions, and tax credits.
H&R Block is a wonderful tax software solution for filers who want to attempt filing on their own but also want to be able to call in expert help if they have problems or get stuck.
Our #1 Recommendation
H&R Block
- Easy step-by-step filing guidance
- Access to authentic tax specialists
- Unlimited access to video or chat customer support
- Reliable refund policy
- Audit support services
- Get the BEST PRICE until the end of October
- Live chat customer service costs extra
