Introduction
The deadline is approaching. Whether you are a solo freelancer or a funded startup, the IRS expects your return by April 15, 2026.
For most founders, the question isn’t “Should I pay taxes?” (The answer is yes). The question is: “Which tool is the best tax software for startups to save me money on my 2025 return?”
In 2026, the “Big Three”—TurboTax, TaxAct, and H&R Block—are fighting for your business. However, they price their products very differently depending on if you are a Sole Proprietor or an S-Corp/LLC.
In this guide, we review the best tax software for startups to help you file quickly and get back to building your business.
🏆 Summary: Best Tax Software for Startups at a Glance
If you are in a rush, here is the quick breakdown of the top tools.
| Software | Best For… | Est. Price (Fed) | Rating |
| TurboTax Business | Best Overall (S-Corps & LLCs) | ~$190 (Desktop) | ⭐⭐⭐⭐⭐ |
| TaxAct Business | Best Value (Budget Friendly) | ~$110 (Online) | ⭐⭐⭐⭐☆ |
| FreeTaxUSA | Cheapest Option (Sole Props ONLY) | $0 (Fed) | ⭐⭐⭐⭐☆ |
| H&R Block | Best Support (In-Person Help) | ~$85 (Self-Emp) | ⭐⭐⭐⭐☆ |
🛑 STOP: Do You Have Your P&L Ready?
Before you buy any of the software below, ask yourself one question: “Do I have an accurate Profit & Loss (P&L) statement for the 2025 tax year?”
Tax software cannot organize your receipts for you. In fact, it is only a calculator. Consequently, if you type in the wrong numbers (because your bookkeeping is messy), you will file an incorrect return.
💡 The Fix: If you haven’t finished your bookkeeping yet, do that first. Software like QuickBooks Online or Xero can generate your P&L in one click.
👉 Read our guide: 5 Best Bookkeeping Tools to Get Tax-Ready Fast
1. TurboTax Business (The Industry Leader)
TurboTax is the giant of the industry. For 2026, they continue to offer the most guided, user-friendly experience on the market.
Why it wins: It feels like an interview. Specifically, TurboTax asks you simple questions (“Did you buy a computer this year?”) and puts the answers on the right tax forms for you.
Best Feature: Furthermore, if you use QuickBooks Online, TurboTax can import your data directly. This saves hours of manual data entry and reduces the risk of typing errors.
- Best For: S-Corps, C-Corps, and Multi-Member LLCs who want the safest, easiest experience.
- The Downside: It is usually the most expensive option.
- 2026 Pricing: Expect to pay around $190 for the Desktop Business version.
2. TaxAct Business (The Budget Alternative)
If you find TurboTax too expensive, TaxAct is your best alternative. It offers nearly the same features for business entities but typically costs significantly less.
Why it wins: TaxAct is fantastic for startups that need to file a separate business return but don’t want to pay TurboTax premiums. Additionally, it supports all major business forms including 1065 (Partnerships) and 1120-S (S-Corps).
- Best For: Bootstrapped startups who know a little bit about taxes and want to save money.
- The Downside: It does not import directly from QuickBooks Online. Instead, you must export your data as a CSV file first, then upload it to TaxAct.
- 2026 Pricing: Business returns start around $109.99.
3. FreeTaxUSA (The Secret Weapon for Solopreneurs)
This is the hidden gem of the tax world. While TurboTax spends millions on ads, FreeTaxUSA quietly offers free federal filing—even for self-employed freelancers.
⚠️ Crucial Warning: FreeTaxUSA is ONLY for Sole Proprietors (Schedule C) and single-member LLCs. Unfortunately, it CANNOT file Form 1065 (Partnerships) or Form 1120-S (S-Corps). If you have a business partner or an S-Corp, you cannot use this software.
- Best For: Freelancers, gig workers, and single-member LLCs with simple returns.
- The Downside: Zero support for complex business entities.
- 2026 Pricing: $0 for Federal, ~$15 for State filing.
4. H&R Block (The Hybrid Choice)
H&R Block is unique because they have physical offices everywhere. Therefore, if you get stuck online, you can upgrade to have a human review your return.
Why it wins: Their “Premium & Business” software is a robust desktop option that handles everything from payroll to rental income.
- Best For: People who want the safety net of being able to walk into a store if things go wrong.
- 2026 Pricing: Self-Employed Online is ~$85; Business Desktop is usually ~$100+.
Verdict: Which is the Best Tax Software for Startups?
- Choose TurboTax Business if: You have an S-Corp or Partnership and use QuickBooks. The direct import feature is worth the extra money.
- Choose TaxAct if: You have an S-Corp or Partnership but are on a tight budget.
- Choose FreeTaxUSA if: You are a Sole Proprietor (Freelancer).
But remember: None of these tools work if your numbers are wrong. Get your books in order first.
Link to Official IRS Tax Calendar (This fixes the Outbound Link error).
👉 Compare the Best Bookkeeping Software (QuickBooks vs Xero) Here
