{"id":9635,"date":"2026-07-06T06:00:00","date_gmt":"2026-07-06T13:00:00","guid":{"rendered":"https:\/\/www.quicken.com\/blog\/?p=9635"},"modified":"2026-07-06T15:02:14","modified_gmt":"2026-07-06T22:02:14","slug":"best-tax-preparation-and-compliance-tools-for-small-businesses-in-2026","status":"publish","type":"post","link":"https:\/\/www.quicken.com\/blog\/best-tax-preparation-and-compliance-tools-for-small-businesses-in-2026\/","title":{"rendered":"Best Tax Preparation and Compliance Tools for Small Businesses in 2026"},"content":{"rendered":"\n<p>Managing business taxes involves more than a once-a-year sprint in April. For most small businesses, the real challenge is year-round: tracking deductible expenses as they happen, separating business and personal spending, estimating quarterly payments, and then \u2014 if you have employees, partners, or a formal entity structure \u2014 handling the forms that come with all of that.<\/p>\n\n\n\n<p>The tools available in 2026 cover the full spectrum of those needs, but they&#8217;re built for different jobs. Some help you file a return. Others help you organize the records that make filing possible. Still others handle the sales tax your business collects from customers \u2014 a completely separate compliance obligation from income tax. The right combination depends on your business structure and what time of year you need help.<\/p>\n\n\n\n<p>This guide covers our picks for the leading tax preparation and compliance tools for small businesses in 2026.<\/p>\n\n\n\n<p><strong>Best overall:<\/strong> Quicken Business &amp; Personal \u2014 year-round tax-ready financial management<br><strong>Best for filing business entity returns:<\/strong> TurboTax<br><strong>Best for working with a tax professional:<\/strong> H&amp;R Block \/ Block Advisors<br><strong>Best for cost-conscious entity filers:<\/strong> TaxAct<br><strong>Best for businesses already using QuickBooks for accounting:<\/strong> QuickBooks<br><strong>Best for bookkeeping and 1099 management:<\/strong> Xero<br><strong>Best for freelancers and sole proprietors on a budget:<\/strong> TaxSlayer Self-Employed<br><strong>Best free option for Schedule C filers:<\/strong> FreeTaxUSA<br><strong>Best professional tax software for tax firms:<\/strong> Drake Tax<br><strong>Best for automated sales tax compliance:<\/strong> TaxJar<br><strong>Best for AI-powered sales tax monitoring:<\/strong> Kintsugi<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Quick comparison<\/h2>\n\n\n\n<p>Prices are in USD, verified as of June 2026, and subject to change.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Tool<\/th><th>Best for<\/th><th>Starting price<\/th><th>Files business entity returns?<\/th><\/tr><\/thead><tbody><tr><td><strong>Quicken Business &amp; Personal<\/strong><\/td><td>Year-round tax-ready financial management<\/td><td>$4.99\/month<\/td><td>No \u2014 organizes records and exports to filing software<\/td><\/tr><tr><td><strong>TurboTax<\/strong><\/td><td>Filing S-corp, C-corp, and partnership returns<\/td><td>$190 (desktop)<\/td><td>Yes (desktop version)<\/td><\/tr><tr><td><strong>H&amp;R Block \/ Block Advisors<\/strong><\/td><td>Professional tax filing assistance<\/td><td>$115 (DIY) \/ $250+ (pro service)<\/td><td>Yes (Block Advisors professional service)<\/td><\/tr><tr><td><strong>TaxAct<\/strong><\/td><td>Lower-cost business entity filing<\/td><td>$109.99\u2013$169.99<\/td><td>Yes<\/td><\/tr><tr><td><strong>QuickBooks<\/strong><\/td><td>Businesses already on QuickBooks for accounting<\/td><td>$38+\/month + add-on<\/td><td>Yes (Expert Business Tax add-on)<\/td><\/tr><tr><td><strong>Xero<\/strong><\/td><td>Accounting and bookkeeping with 1099 management<\/td><td>$25\/month<\/td><td>No \u2014 accounting only<\/td><\/tr><tr><td><strong>TaxSlayer Self-Employed<\/strong><\/td><td>Freelancers and sole proprietors filing a 1040<\/td><td>$74.99<\/td><td>No \u2014 1040 and Schedule C only<\/td><\/tr><tr><td><strong>FreeTaxUSA<\/strong><\/td><td>Free federal filing for Schedule C filers<\/td><td>Free (federal)<\/td><td>No \u2014 1040 and Schedule C only<\/td><\/tr><tr><td><strong>Drake Tax<\/strong><\/td><td>Tax professionals and CPA firms<\/td><td>$379.99\/tax year<\/td><td>Yes<\/td><\/tr><tr><td><strong>TaxJar<\/strong><\/td><td>Automated sales tax compliance<\/td><td>$39\/month<\/td><td>N\/A \u2014 sales tax only<\/td><\/tr><tr><td><strong>Kintsugi<\/strong><\/td><td>AI-powered sales tax monitoring<\/td><td>Free tier<\/td><td>N\/A \u2014 sales tax only<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">The best tax tools for small businesses in 2026<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Quicken Business &amp; Personal \u2014 best overall<\/h3>\n\n\n\n<p><strong>Best for:<\/strong> Small business owners who want to stay tax-ready throughout the year, not just during filing season.<\/p>\n\n\n\n<p>Quicken Business &amp; Personal takes a different approach than the other tools on this list. Rather than helping you prepare a return once a year, it keeps your financial records organized every day \u2014 so when tax season arrives, your data is already in order.<\/p>\n\n\n\n<p>Transactions from more than 14,000 connected financial institutions sync automatically and are categorized in real time. Business and personal spending are tracked separately, so you can see a clean view of your business finances without your personal expenses muddying the picture. Receipts captured through the app are stored for IRS-compliant recordkeeping. And built-in tax reports generate the data your tax preparer or filing software needs for the schedules most small businesses file: Schedule C (self-employment and business income), Schedule E (rental and pass-through income), Schedule F (farm income), and Schedules A and B.<\/p>\n\n\n\n<p>The built-in Tax Planner helps you estimate what you&#8217;ll owe each quarter based on your business profit and personal income, so you can plan payments throughout the year rather than face a surprise at filing time. When you&#8217;re ready to file, you can export your financial data as a .txf or .txj file that imports directly into tax software like TurboTax.<\/p>\n\n\n\n<p>Quicken Business &amp; Personal also lets you manage up to 10 businesses from a single account, handles invoicing with Stripe integration, and supports tagging expenses as billable to clients. It also includes the complete suite of personal financial management features \u2014 spending plans, savings goals, projected cash flow, investment tracking, and retirement modeling \u2014 making it a comprehensive tool for business owners who need to manage both sides of their financial life.<\/p>\n\n\n\n<p>Quicken has been named to Time&#8217;s list of America&#8217;s Best Financial Services (2026), recognized by PCMag as one of the best personal finance software options (2024 and 2025), and named Personal Finance App of the Year by the FinTech Breakthrough Awards (2026).<\/p>\n\n\n\n<p><strong>What it doesn&#8217;t do:<\/strong> Quicken Business &amp; Personal is a financial management and tax organization tool \u2014 it doesn&#8217;t e-file tax returns directly. You&#8217;ll export your financial data to dedicated filing software for the actual filing step.<\/p>\n\n\n\n<p><strong>Price:<\/strong> From $4.99\/month (promotional rate)<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">TurboTax \u2014 best for filing business entity returns<\/h3>\n\n\n\n<p><strong>Best for:<\/strong> Business owners who need to file entity-level returns \u2014 S-corporations, C-corporations, multi-member LLCs, or partnerships \u2014 or who want access to a dedicated tax expert for year-round guidance (sole proprietors and single-member LLCs).<\/p>\n\n\n\n<p>TurboTax offers two distinct small business products, and understanding which one applies to your situation matters.<\/p>\n\n\n\n<p><strong>TurboTax Business (desktop)<\/strong> is the option for entity-level returns. It prepares S-corporation returns (Form 1120-S), C-corporation returns (Form 1120), partnership and multi-member LLC returns (Form 1065), and trust and estate returns (Form 1041). It also creates the W-2s, 1099s, and Schedule K-1s those entities are required to distribute. This is Windows-only desktop software, priced at $190 for the tax year.<\/p>\n\n\n\n<p><strong>TurboTax Expert 365 Business<\/strong> is a subscription service ($99\/month) that gives you a dedicated tax expert for year-round bookkeeping, quarterly reviews, and tax planning. However, this service is available only to sole proprietors and single-member LLCs \u2014 it does not support S-corporations, C-corporations, or partnerships.<\/p>\n\n\n\n<p>TurboTax covers a wide range of business structures across its product line. Keep in mind that the desktop product requires Windows, and the year-round CPA subscription is limited to the simplest business types.<\/p>\n\n\n\n<p><strong>Price:<\/strong> TurboTax Business (desktop) $190; Expert 365 Business $99\/month<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">H&amp;R Block \u2014 best for working with a tax professional<\/h3>\n\n\n\n<p><strong>Best for:<\/strong> Business owners who want professional tax filing assistance \u2014 especially those with S-corporations, C-corporations, or LLCs \u2014 or who prefer working with a tax expert over DIY software.<\/p>\n\n\n\n<p>H&amp;R Block offers two paths for small business tax preparation.<\/p>\n\n\n\n<p><strong>H&amp;R Block Premium &amp; Business<\/strong> is DIY software (Windows only, $115) for individual filers \u2014 primarily those with Schedule C income. It includes AI Tax Assist, up to five federal e-files, audit support, and state e-filing at $19.95 per state.<\/p>\n\n\n\n<p><strong>Block Advisors by H&amp;R Block<\/strong> is a professional filing service for businesses that need more comprehensive help. Small business certified tax professionals handle S-corporations, C-corporations, and LLCs, and are available in-office, online, or by drop-off. Professional filing starts at $250 plus $75 per state filed \u2014 which Block Advisors states is up to 30% less than a typical CPA or accountant. The service includes preparation of a profit and loss statement, a tax savings analysis, year-round availability, and a 100% accuracy guarantee. Block Advisors serves over 2 million businesses each year.<\/p>\n\n\n\n<p><strong>Price:<\/strong> H&amp;R Block Premium &amp; Business (DIY software) $115; Block Advisors professional service starting at $250 + $75\/state<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">TaxAct \u2014 best for cost-conscious business entity filers<\/h3>\n\n\n\n<p><strong>Best for:<\/strong> Business owners who need to file S-corp, C-corp, or partnership returns and are looking for a lower-cost option.<\/p>\n\n\n\n<p>TaxAct offers separate online products for each major business structure: $109.99 for sole proprietors, $159.99 for partnerships, and $169.99 each for S-corporations and C-corporations. Each product covers the corresponding federal forms; state filing is an additional cost. TaxAct has served over 690,000 businesses.<\/p>\n\n\n\n<p><strong>Price:<\/strong> Sole proprietors $109.99; partnerships $159.99; S-corps and C-corps $169.99 each<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">QuickBooks \u2014 best for businesses already using QuickBooks for accounting<\/h3>\n\n\n\n<p><strong>Best for:<\/strong> Small businesses already running their bookkeeping in QuickBooks who want an integrated tax filing option without switching platforms.<\/p>\n\n\n\n<p>QuickBooks is primarily an accounting and bookkeeping platform. Its tax filing capability \u2014 Intuit Expert Business Tax, powered by TurboTax \u2014 is an add-on service available on all QuickBooks Online plans. It handles S-corporations, partnerships, LLCs, and sole proprietors, with expert help from TurboTax-affiliated tax professionals. Pricing for Expert Business Tax varies by entity type and can be found by logging into a QuickBooks account.<\/p>\n\n\n\n<p>QuickBooks Online plans range from $38\/month (Simple Start, 1 user) to $275\/month (Advanced, 25 users), with Essentials at $75\/month and Plus at $115\/month. If you&#8217;re already using QuickBooks to manage your books, adding Expert Business Tax keeps your financial data in one ecosystem. If you&#8217;re starting fresh and primarily need year-round tax organization rather than full accounting functionality, the overall cost will be higher than some alternatives.<\/p>\n\n\n\n<p><strong>Price:<\/strong> QuickBooks plans $38\u2013$275\/month; Expert Business Tax add-on pricing varies by entity type<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Xero \u2014 best for bookkeeping and 1099 management<\/h3>\n\n\n\n<p><strong>Best for:<\/strong> Small businesses that want cloud-based accounting software with built-in sales tax tracking, W-9 management, and 1099 reporting.<\/p>\n\n\n\n<p>Xero is a cloud-based accounting platform used by more than 4.9 million customers worldwide. Its three plans \u2014 Early ($25\/month), Growing ($55\/month), and Established ($90\/month) \u2014 all include bank reconciliation, invoicing, sales tax, and W-9 and 1099 management. The Established plan adds employee expense tracking, project time and cost tracking, and a 180-day cash flow forecast.<\/p>\n\n\n\n<p>Xero does not prepare or file income tax returns \u2014 it organizes your financial data and supports accounting functions that a tax professional or separate tax software would use at filing time. Payroll is available through a Gusto integration (a separate Gusto subscription is required).<\/p>\n\n\n\n<p><strong>Price:<\/strong> Early $25\/month; Growing $55\/month; Established $90\/month<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">TaxSlayer Self-Employed \u2014 best for freelancers and sole proprietors on a budget<\/h3>\n\n\n\n<p><strong>Best for:<\/strong> Freelancers, independent contractors, and 1099 workers who file a personal return with Schedule C income.<\/p>\n\n\n\n<p>TaxSlayer Self-Employed ($74.99) is designed for self-employed filers. It covers Schedule C income and deductions, self-employment taxes (Schedule SE), 1099-NEC and 1099-MISC income, the qualified business income (QBI) deduction, and includes access to tax professionals with self-employed expertise. Built-in quarterly estimated tax payment reminders help you stay on top of payments throughout the year. State returns are $47.99 per state.<\/p>\n\n\n\n<p>One important limitation: all TaxSlayer products \u2014 including Self-Employed \u2014 file Form 1040 and related schedules only. TaxSlayer does not offer partnership returns (Form 1065), S-corporation returns (Form 1120-S), or C-corporation returns (Form 1120). If your business files a separate entity-level return, you&#8217;ll need a different tool.<\/p>\n\n\n\n<p><strong>Price:<\/strong> $74.99 federal + $47.99\/state<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">FreeTaxUSA \u2014 best free option for Schedule C filers<\/h3>\n\n\n\n<p><strong>Best for:<\/strong> Sole proprietors, freelancers, and self-employed individuals who want to minimize tax preparation costs.<\/p>\n\n\n\n<p>FreeTaxUSA files federal returns for free \u2014 including Schedule C (self-employment income), Schedule E (rental and pass-through income), Schedule F (farm income), self-employment taxes (Schedule SE), the home office deduction (Form 8829), depreciation (Form 4562), and the qualified business income deduction (Form 8995). State returns are $15.99 each. The platform carries a 4.8\/5 rating based on more than 678,000 reviews, and more than 82 million returns have been filed through it.<\/p>\n\n\n\n<p>Like TaxSlayer, FreeTaxUSA files Form 1040 only. It does not prepare partnership returns (Form 1065), S-corporation returns (Form 1120-S), or C-corporation returns (Form 1120). Pass-through income reported on a K-1 can be entered on a personal 1040, but the entity return itself must be filed elsewhere.<\/p>\n\n\n\n<p>Optional upgrades include Deluxe support \u2014 live chat, priority access, and unlimited amended returns \u2014 for $7.99, and Pro Support with personal tax advice and phone access for $64.99.<\/p>\n\n\n\n<p><strong>Price:<\/strong> Federal free; state $15.99; Deluxe $7.99; Pro Support $64.99<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Drake Tax \u2014 best professional software for tax firms<\/h3>\n\n\n\n<p><strong>Best for:<\/strong> Tax professionals, CPAs, and accounting firms who prepare returns for multiple business clients \u2014 not for business owners filing their own returns.<\/p>\n\n\n\n<p>Drake Tax is professional-grade tax software used by more than 70,000 tax professionals, with a track record going back to 1977. It covers the full range of tax forms \u2014 Form 1040, 1120, 1120-S, 1065, 1041, and more \u2014 with all states included and no additional e-filing fees. The platform includes hundreds of return diagnostics, LookBack tools to compare prior-year data, and LinkBack features that trace calculated results to their source entries.<\/p>\n\n\n\n<p>Pricing is structured for firms. Drake Tax Pro (unlimited individual and business returns) starts at $3,145 per tax year for the multi-user version. A pay-per-return option is available starting at $379.99, which includes 10 individual returns, with additional individual returns available at $49.99 each and business returns at $74.99 each. Drake Tax Online provides a cloud-based pay-per-return alternative. Drake Tax received the 2026 CPA Practice Advisor award for Federal\/State Income Tax Preparation.<\/p>\n\n\n\n<p>If you work with a CPA or tax preparer, they may already use Drake Tax or similar professional software to prepare your returns.<\/p>\n\n\n\n<p><strong>Price:<\/strong> Drake Tax Pro from $3,145\/tax year (unlimited returns); pay-per-return from $379.99<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">TaxJar \u2014 best for automated sales tax compliance<\/h3>\n\n\n\n<p><strong>Best for:<\/strong> E-commerce businesses, retailers, and SaaS companies selling across multiple states that need to automate sales tax calculations, tracking, and filing.<\/p>\n\n\n\n<p>TaxJar focuses entirely on sales tax compliance \u2014 it does not handle income tax preparation. Its platform automates the full sales tax lifecycle: calculating rates across 11,000 jurisdictions, tracking economic nexus thresholds by state, generating reports, and filing returns through its AutoFile feature. It integrates with platforms like Amazon, Shopify, and WooCommerce, and offers a developer API for custom setups.<\/p>\n\n\n\n<p>TaxJar is used by more than 20,000 businesses and carries a 4.7\/5 rating on G2. Plans start at $39\/month (Starter) or $99\/month (Professional), and both plans include a 30-day free trial.<\/p>\n\n\n\n<p><strong>Price:<\/strong> Starter $39\/month; Professional $99\/month; 30-day free trial<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Kintsugi \u2014 best for AI-powered sales tax monitoring<\/h3>\n\n\n\n<p><strong>Best for:<\/strong> Growing businesses that want AI-assisted sales tax exposure monitoring, automated filing, and multi-country compliance without long-term contract commitments.<\/p>\n\n\n\n<p>Kintsugi is an AI-powered sales tax compliance platform. Its AI assistant, Kin, helps with product tax classification, address validation, and compliance risk alerts in real time. The platform monitors nexus exposure across the US and more than 100 countries and integrates with more than 40 billing, payment, and ERP systems \u2014 including Shopify, Stripe, Chargebee, and BigCommerce.<\/p>\n\n\n\n<p>Kintsugi&#8217;s pricing model differs from most compliance platforms: a free tier covers global exposure monitoring and nexus threshold tracking, while the Starter plan charges $75 per filing or registration rather than a monthly subscription. A custom Premium plan is available for high-volume or multi-country businesses. Kintsugi is SOC2 Type II compliant.<\/p>\n\n\n\n<p>Like TaxJar, Kintsugi is a sales tax compliance tool \u2014 it does not handle income tax preparation.<\/p>\n\n\n\n<p><strong>Price:<\/strong> Free monitoring tier; Starter $75 per filing or registration; Premium custom pricing<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">How to choose the right tax tool for your small business<\/h2>\n\n\n\n<p>The right approach depends on your business structure, the volume and complexity of your transactions, and what part of the year you need the most help.<\/p>\n\n\n\n<p><strong>If year-round organization is your biggest challenge<\/strong> \u2014 keeping business and personal expenses separated, making sure deductions are captured before tax season, and estimating quarterly payments on time \u2014 a financial management tool like Quicken Business &amp; Personal is designed for exactly that. It keeps your records in filing-ready shape throughout the year, so tax time is a summary step rather than a scramble.<\/p>\n\n\n\n<p><strong>If you need to file a business entity return<\/strong> (S-corp, C-corp, or partnership), you need software or a professional service that specifically handles those forms. TurboTax Business (desktop), TaxAct&#8217;s business products, and Block Advisors all support entity-level filings. Your accounting situation and budget will determine which is the right fit.<\/p>\n\n\n\n<p><strong>If you&#8217;re a sole proprietor or freelancer<\/strong> filing Schedule C on your personal 1040, TaxSlayer Self-Employed and FreeTaxUSA handle the return at a significantly lower cost than entity-filing tools.<\/p>\n\n\n\n<p><strong>If you sell products or services across multiple states<\/strong>, sales tax compliance is a separate obligation from income tax. Tools like TaxJar and Kintsugi automate that compliance and are typically used alongside \u2014 not instead of \u2014 income tax software.<\/p>\n\n\n\n<p><strong>If you work with a CPA or tax preparer<\/strong>, they may already use professional software like Drake Tax. In that case, your role is to provide organized, accurate financial records \u2014 which is where a tool like Quicken Business &amp; Personal adds the most value.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently asked questions<\/h2>\n\n\n\n<p><strong>What is the difference between tax preparation software and sales tax compliance software?<\/strong><\/p>\n\n\n\n<p>Tax preparation software \u2014 such as TurboTax, TaxAct, and H&amp;R Block \u2014 helps you prepare and file your annual federal and state income tax returns. Sales tax compliance software \u2014 such as TaxJar and Kintsugi \u2014 handles the sales tax your business collects from customers at the point of sale, including tracking nexus obligations across states, calculating the correct rates, and filing returns with state tax authorities. These address two different tax obligations, and businesses that have both needs typically use separate tools for each.<\/p>\n\n\n\n<p><strong>Does Quicken Business &amp; Personal file my taxes for me?<\/strong><\/p>\n\n\n\n<p>Quicken Business &amp; Personal is a year-round financial management and tax organization tool. It tracks income and expenses, generates reports for Schedules A, B, C, E, and F and Form 1040, stores receipts for recordkeeping, and helps you estimate quarterly tax payments through its built-in Tax Planner. When you&#8217;re ready to file, you can export your financial data as a .txf or .txj file that imports directly into tax filing software like TurboTax. It does not e-file tax returns directly, but it keeps your records organized so that filing step is straightforward.<\/p>\n\n\n\n<p><strong>Can the same software file both my personal return and my business entity return?<\/strong><\/p>\n\n\n\n<p>It depends on the software. Most consumer-facing filing tools \u2014 including TaxSlayer Self-Employed and FreeTaxUSA \u2014 handle personal returns (Form 1040) that may include Schedule C business income, but they do not prepare separate entity-level returns for partnerships (Form 1065), S-corporations (Form 1120-S), or C-corporations (Form 1120). TurboTax Business (desktop version) and TaxAct&#8217;s business products handle entity returns separately from personal returns.<\/p>\n\n\n\n<p><strong>What is economic nexus, and does my small business need to worry about it?<\/strong><\/p>\n\n\n\n<p>Economic nexus is a sales tax concept: if your sales in a state exceed certain revenue or transaction thresholds, you may be required to collect and remit sales tax in that state \u2014 even if your business has no physical location there. Thresholds vary by state. Tools like TaxJar and Kintsugi track these thresholds automatically across all states and alert you when you&#8217;re approaching a filing requirement.<\/p>\n\n\n\n<p><strong>Is there a free option for filing small business taxes?<\/strong><\/p>\n\n\n\n<p>FreeTaxUSA offers free federal tax filing for sole proprietors and freelancers, including Schedule C and other self-employment forms. State returns are $15.99 each. Free filing options are generally limited to personal returns (Form 1040) \u2014 if your business is structured as an S-corporation, C-corporation, or partnership, entity-level returns require paid software or professional services.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Compare the top tax tools for small businesses in 2026, from year-round financial management to filing software and sales tax compliance.<\/p>\n","protected":false},"author":59,"featured_media":9636,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","inline_featured_image":false,"footnotes":""},"categories":[113],"tags":[],"class_list":["post-9635","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-small-business"],"acf":[],"jetpack_featured_media_url":"https:\/\/www.quicken.com\/blog\/wp-content\/uploads\/2026\/06\/Best_Tax_Preparation_and_Compliance_Tools_for_Small_Businesses_in_2026.jpg","_links":{"self":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/9635","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/comments?post=9635"}],"version-history":[{"count":2,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/9635\/revisions"}],"predecessor-version":[{"id":9657,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/9635\/revisions\/9657"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/media\/9636"}],"wp:attachment":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/media?parent=9635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/categories?post=9635"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/tags?post=9635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}