Best Tax Software for LLC (2024 Detailed Comparison)
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, I partnered with a team of 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 Venture Smarter honest review of the best tax software you can use for your limited liability company.
Top 5 Tax Software For LLCs (December 2024)
1 - H&R Block
Pros and Cons
- User-friendly interface aids tax filing.
- Maximizes refund potential effectively.
- Streamlines process with easy document import.
- Fast processing for quicker tax return completion.
- High accuracy and tax expertise ensure correctness.
- Limited membership options, no free tier.
Who is it for?
Who is it for?
- For individuals and small businesses needing comprehensive tax filing options.
Who is it not for?
- Not for those looking for the cheapest, bare-bones filing solution.
The Verdict
H&R Block offers robust tax solutions with a range of filing options, making it ideal for diverse tax needs.
H&R Block is an American tax preparation company that was founded in 1955. The company operates in Canada, the United States, and Australia.
According to H&R Block, they processed 935 million tax returns worldwide, with 20 million filed in 2024 and 5 million customers switching to their services that year.
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.
2 - TurboTax
Pros and Cons
- Wide range of products for different filers.
- User-friendly and comprehensive experience.
- Free version available for simple tax situations.
- Live support with TurboTax Live for additional help.
- Total fees unclear until partway through the process.
Who is it for?
Who is it for?
- Ideal for users seeking hands-on support and extensive deductions.
Who is it not for?
- Not suited for those who need the most affordable filing options.
The Verdict
TurboTax provides an excellent user experience with expert help, suitable for complex tax situations.
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's software provides a tax preparation experience akin to an interview with a knowledgeable tax professional who adeptly prompts and guides you through the process."
- Delina Yasmeh, J.D./Tax LL.M, Distinguished Expert in Mergers & Acquisitions
- 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.
3 - TaxAct
Pros and Cons
- Good user experience, simplifying tax filing.
- Excellent mobile access for filing on the go.
- Accessible context-sensitive help provided.
- Affordable professional tax help available.
- Some help links lead to IRS documents.
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.
4 - TaxSlayer
Pros and Cons
- Strong for self-employed filers.
- More affordable than competitors.
- Phone and email support included.
- Free version lacks certain tax credits.
- Interface less intuitive than alternatives.
Who is it for?
Who is it for?
- Good for self-employed individuals or those with straightforward tax needs.
Who is it not for?
- Not for users who prefer the most intuitive user interfaces.
The Verdict
TaxSlayer delivers a cost-effective solution for varied tax scenarios with strong support options.
TaxSlayer is a privately owned tax preparation and financial technology company based in Augusta, Georgia.
According to TaxSlayer, their tax preparation software has been rated 4.3 out of 5 based on 26,143 reviews on Trustpilot.
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.
5 - FreeTaxUSA
Pros and Cons
- All federal returns are free regardless of tax situation.
- Basic support included for free through email.
- Simple and modern interface simplifies navigation.
- State returns are not free and cost $14.99 each.
- Lacks document upload feature, extending filing time.
Who is it for?
Who is it for?
- Best for those looking for free federal filing and simple to complex returns.
Who is it not for?
- Not for those expecting in-person tax support.
The Verdict
FreeTaxUSA excels in providing a free federal return service with comprehensive features for various needs.
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.
Why You Should Trust Us
When it comes to selecting the most suitable tax software for your LLC, my extensive expertise and personal experience provide a solid foundation for reliable guidance.
As the CEO, co-founder, and editor-in-chief of Venture Smarter, I have devoted over nine years to aiding startups and well-established businesses, helping them to grow and navigate the complexities of effective business management. My insights are built on a robust academic background in business management, further enhanced by a variety of industry certifications.
Throughout my professional journey, I've engaged with numerous tax software solutions, contributing significantly to the financial and operational efficiency of many businesses. This comprehensive experience has endowed me with a nuanced understanding of what LLCs truly require from their tax software, ensuring compliance and maximizing returns.
Therefore, when I highlight H&R Block as the top choice for your LLC's tax software needs, it stems from a blend of professional judgment and positive real-world impacts observed among clients.
Your success is my priority, reflected in my commitment to assisting businesses in achieving their financial goals. This makes my recommendation of H&R Block a well-considered advice rooted in years of practical involvement and success in business support.
Our Selection Process
In Venture Smarter comprehensive review process, we meticulously analyzed over 30 tax software options catering to LLCs. Our approach was to use these services as a typical customer would, ensuring an authentic evaluation of their capabilities.
Our team, consisting of tax professionals and business analysts, conducted this extensive research over several months.
We focused on a range of criteria, including the ease of use, accuracy of tax calculations, integration of the latest tax laws, and the quality of customer support.
Our goal was to identify software that simplifies the tax filing process and provides robust features suitable for the diverse needs of LLCs.
Here's a detailed explanation of our selection process:
1. Pricing
For LLCs, especially small and medium-sized ones, the cost of tax software is crucial. Affordable yet feature-rich software can significantly reduce the financial burden during the tax season.
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.
To assess pricing, we created a standardized set of business and personal tax scenarios applicable to different user profiles.
We then recorded the total costs, including base fees, state filing charges, and additional service fees for each scenario across the platforms.
We also evaluated the transparency of pricing structures, noting any hidden costs or misleading promotional pricing.
TaxAct and FreeTaxUSA are notable for their cost-effective solutions, offering advanced features at a lower price point.
TurboTax, while more expensive, offers comprehensive services that may justify its higher cost for LLCs needing extensive support.
2. Customer Support
Efficient customer support is vital for addressing complex tax queries and technical issues. It ensures a smooth tax filing experience for LLC owners.
We conducted a series of tests to evaluate the responsiveness, knowledgeability, and overall quality of customer support.
This included submitting a set of predefined tax-related questions via email, live chat, and phone to each service.
We tracked response times, the accuracy of the responses, and the level of detail provided.
Additionally, we reviewed available online resources like FAQs, guides, and video tutorials for their comprehensiveness and ease of use.
H&R Block and TurboTax stand out for their extensive access to human tax experts and comprehensive support options.
TaxAct and FreeTaxUSA, while offering professional support, lack detailed information on response times and the nature of their customer support, which could be areas for improvement.
3. Features
The range and quality of services offered by tax software are crucial for LLCs because they can significantly impact the efficiency and effectiveness of tax filing and planning.
We systematically tested the key features advertised by each software, such as deduction discovery, income import capabilities, and error checking.
Our tests involved entering data for a variety of tax situations, including self-employment, real estate investments, and charitable donations, to assess how well each platform handled complex scenarios.
We also evaluated the usability and helpfulness of any added tools like tax calculators, expense trackers, and audit risk meters.
H&R Block and TurboTax are the winners in this category, offering a wide range of services that cater to various needs, from basic to complex tax situations.
FreeTaxUSA, while efficient and cost-effective, may not offer as many comprehensive services as its competitors, making it less suitable for LLCs with more complex tax needs.
4. Reliability and Reputation
Reliability and reputation are crucial for tax software as they directly impact the trust and confidence users place in these tools.
Reliable software ensures accuracy in tax calculations and compliance with tax laws, which is essential for avoiding legal issues and penalties.
We used platforms like TrustPilot, Google Reviews, and even the software’s own website to provide insights into user experiences. High ratings and positive reviews indicated a good reputation.
H&R Block and TurboTax stand out as leaders in reliability and reputation in the tax software market for LLCs.
5. Ease of Use
User-friendly tax software saves significant time. LLC owners often juggle multiple responsibilities, and a straightforward platform enables quicker tax filing.
In our analysis we focused of tax software that ensured accurate filing for users with even minimal tax knowledge, making tax software more accessible to a broader range of users.
TurboTax and H&R Block are the leaders in ease of use, offering intuitive and comprehensive platforms that cater to a wide range of users.
FreeTaxUSA, while efficient, lacks some features that could enhance the ease of use, such as the import of key tax documents.
TaxSlayer, although user-friendly, may not match the sophistication of TurboTax or H&R Block in terms of interface design and advanced 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
According to the IRS, electronic returns exhibit a notably lower error rate than those prepared by hand [2].
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."
- Delina Yasmeh, J.D./Tax LL.M, Distinguished Expert in Mergers & Acquisitions
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.
Venture Smarter Verdict On The Best Tax Software For an LLC
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.
After a comprehensive review of the 5 tax software, we settled on H&R Block for its reputable tax software program that meets the specific needs of your LLC.
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.
Venture Smarter #1 Recommendation
H&R Block
- User-friendly interface aids tax filing.
- Maximizes refund potential effectively.
- Streamlines process with easy document import.
- Fast processing for quicker tax return completion.
- High accuracy and tax expertise ensure correctness.
- Get the BEST PRICE until the end of December
- Limited membership options, no free tier.
References:
- https://www.irs.gov/pub/irs-pdf/f1040.pdf
- https://apps.irs.gov/app/understandingTaxes/hows/tax_tutorials/mod13/tt_mod13_ai.jsp?backPage=tt_mod13_02.jsp
