3 Recommended Small Business Tax Software Applications

Small business tax software is invaluable for entrepreneurs who cannot afford the services of a tax accountant. They are generally accurate, and if there's ever a problem, most companies will pay for any tax liability resulting from errors. You can prepare your taxes at home on your computer, in the middle of the night if you want, and e-file it with the Internal Revenue Service (IRS). You don't have to deliver or mail paperwork to a tax preparer, or meet with them to get your taxes done, which saves time and energy. Consider these 3 small business tax software applications for your upcoming tax filings:

1 - TurboTax by Intuit

TurboTax is by far the best small business tax software on the market, and it's easy to get started online. It's interesting to note that many high ranking government officials have used TurboTax to file their taxes, including the Treasury Secretary. The software is very easy to use, and hand-holds you through the process of filing your taxes. Some of the noteworthy features include:

  • Import last year's tax return, and update as needed
  • Software selects all the forms you'll need without you having to think about it
  • File federal and state tax returns together
  • File home and business taxes together or separate forms for corporations

There's a free e-file included when you pay for either the "Home & Business" or "Business" package. If for some reason your questions don't get answered by going through the filing process, you can obtain live support or read what others are saying about your topic in the TurboTax online community. You can download or buy a CD if you're don't want to file your taxes online.

2 - H&R Block Tax Software

H&R Block is a major competitor to TurboTax, and offers better prices on its packages. It's small business tax software is cheaper than its tax preparation services, and you still get expert advice from an H&R professional if you choose a "Premium" or "Best of Both" package.  Features vary among packages, including:

  • Checks for errors that you might have missed
  • "Worry-free Audit Support" if you want extra help
  • "Best of Both" includes unlimited live tax advice by phone or email
  • Tax planning resources

Packages also include a free federal e-file, so that you can submit your returns and payments directly to the IRS. You can also buy a CD or download the software, and bypass H&R Block's online products if you're more comfortable with that.

3 - TaxACT

A close third for small business tax software is TaxACT. It's not much different from TurboTax or H&R Block, except it doesn't have as much name recognition. The features that TaxACT offers include:

  • Free guidance from tax specialists by phone or email
  • Import previous tax forms saved in PDF
  • Video tutorials

Its prices are competitive for personal tax forms that you need to file, which is important since it's easier to complete home and business taxes using the same tax software application online.

Whichever of these small business tax software programs you choose, it's best to file your taxes online rather than buy a CD. You'll have to buy an updated version each year, and downloading a software program on your desktop or laptop does take up space. All three of these companies guarantee the security of your personal and business information, and there has been no scandal to date about identity theft in regards to online tax filing through TurboTax, H&R Block or TaxACT.