Finance & Accounting

Best Tax Software for Small Business in 2026

Twelve US tax tools for small businesses: income tax filing, preparer software, sales tax engines and 1099 e-filing, compared on forms covered and price.

Tax software for small business covers the programs a small company uses to meet its tax obligations: preparing the federal and state income tax return for its legal form, collecting and filing sales tax, and issuing information returns such as Forms 1099 and W-2. In the United States the form depends on the entity: sole proprietors file Schedule C with their Form 1040, S corporations file Form 1120-S and issue K-1s, and partnerships file Form 1065.

This list compares twelve products available for the 2026 filing season across four groups: do-it-yourself and expert-assisted income tax filing (TurboTax, TaxAct, Keeper), professional preparer software used by the small accounting firms that serve most small businesses (Drake Tax), books that feed the return (QuickBooks Online), and specialist sales tax and information-return tools (Avalara, TaxJar, Stripe Tax, Numeral, Quaderno and Tax1099). Prices are those published by each vendor in November 2026.

Contents
  1. What is small business tax software
  2. History and market
  3. Key features to compare
  4. Pricing models
  5. How to choose
  6. Methodology
  7. The list
  8. Comparison table
  9. Alternatives by use case
  10. Recent developments
  11. Frequently asked questions
  12. See also

What is small business tax software

Small business tax software prepares, calculates or files a tax obligation for a business rather than an individual. Three kinds of obligation dominate. Income tax is reported annually on the return that matches the entity's structure: Schedule C, Schedule SE and quarterly Form 1040-ES estimates for sole proprietors; Form 1120-S with K-1 schedules for S corporations; Form 1065 for partnerships; and Form 1120 for C corporations. Sales and use tax is collected on transactions and remitted to state and local authorities, or to national authorities as VAT and GST elsewhere. Information returns such as 1099s and W-2s report payments to contractors and employees.

The category borders several others. Accounting software for small business keeps the books from which a return is prepared, but does not usually file the income tax return. Payroll software calculates and files employment taxes. Bookkeeping services and outsourced accounting services provide people rather than software, and tax firms use professional preparer software on their clients' behalf. This list includes one representative of each where it directly affects the tax result.

History and market

Intuit's TurboTax is a long-standing US desktop option for business returns; its Business edition still installs only on Windows. Intuit has extended the brand online with expert-assisted and full-service options for pass-through entities. A second group of brands has consolidated under Taxwell, which now owns TaxAct, Drake Software and 1040.com and reports more than 24 million filings a year across consumers and professionals.

Sales tax software expanded after US states adopted economic nexus rules, under which a remote seller can owe tax in a state where it has no physical presence once it crosses a sales threshold. Avalara reports more than 41,000 customers and more than 1,400 integrations; TaxJar served e-commerce sellers and was acquired by Stripe in 2021, which also built Stripe Tax into its payments platform. Newer entrants such as Numeral sell fully managed filing on a per-filing basis, while Vertex serves large enterprises and says more than 60% of the Fortune 500 use it.

Information-return filing changed when the IRS lowered the electronic-filing threshold: since tax year 2023, ten or more information returns must be e-filed, through the IRS's free IRIS portal or through software. No independently audited market-size figure for small-business tax software was used for this list.

Key features to compare

Entity and form coverage

The decisive question is whether a product supports the business's return. TurboTax's online expert products exclude C corporations and trusts, while its desktop edition includes them. Keeper prepares Forms 1120-S and 1065 only on its Business plan.

Professional involvement

Some products include a credentialed reviewer or preparer: Keeper has every return reviewed and signed by a tax professional, and TurboTax sells Expert Assist and Full Service levels.

State returns

State software and state e-filing are often extra; TurboTax Business sells its state product separately, and its online expert products cap the number of state filings at five.

Year-round bookkeeping

Keeper and QuickBooks Online categorise expenses throughout the year, which reduces work at filing time; QuickBooks also estimates quarterly payments on Essentials and above.

Sales tax nexus and filing

For sellers in several states, nexus monitoring, calculation accuracy and automated filing matter more than the income tax return. Avalara, TaxJar, Stripe Tax and Numeral all monitor nexus; they differ on whether filing is included in a subscription or charged per filing.

Information returns

Businesses paying contractors need W-9 collection, TIN matching and 1099 e-filing; Tax1099 and QuickBooks Advanced provide these.

Integrations

Sales tax tools must connect to the store, marketplace or billing platform: Avalara lists more than 1,400 integrations, TaxJar and Numeral connect to Shopify and Amazon, and Stripe Tax works natively with Stripe Billing.

Pricing models

Per-return or per-year licences apply to income tax software. TurboTax Business costs US$194 for tax year 2026 including five federal e-files. Expert-assisted online filing ranges from US$229 for a sole proprietor to US$1,549 for full-service preparation of an S corporation or partnership return. Keeper bundles bookkeeping and filing at US$199 to US$1,199 a year. Professional software is priced per practice: Drake Tax Pro lists US$3,145 for a multi-user unlimited licence, or US$74.99 per business return on pay-per-return plans.

Subscription by volume dominates sales tax: TaxJar from US$39 a month at 200 orders, Quaderno from 24 a month at 25 transactions, and Stripe Tax Complete from US$90 a month. Avalara's AvaTax starts at US$699 per state per year.

Per-transaction and per-filing fees are the third model: Stripe Tax Basic charges 0.5% per transaction, Numeral charges US$75 per filing and US$150 per registration, and Tax1099 charges from US$0.72 per form.

How to choose

Sole proprietors and freelancers filing Schedule C can choose between expert help from TurboTax at US$229 and a year-round app such as Keeper that also tracks deductions.

S corporations and partnerships preparing their own return usually choose TurboTax Business on Windows or TaxAct; those wanting a professional to sign the return can use Keeper Business or TurboTax Full Service. C corporations are excluded from TurboTax's online expert products and from Keeper, leaving the desktop edition or an accountant.

E-commerce sellers should prioritise sales tax: TaxJar or Numeral for marketplace sellers, Stripe Tax for Stripe-billed SaaS, Quaderno for international digital sales, and Avalara once the business runs an ERP or sells in many states.

Any business with contractors filing ten or more information returns must e-file them, using IRIS, Tax1099 or QuickBooks Advanced. Firms that outsource their returns will find that their accountant's choice, such as Drake Tax, determines cost more than the owner's own software.

Methodology

The list covers software sold to or used for US small businesses for the 2026 filing season. Products were included if the vendor's own website, opened during research in November 2026, documented the forms or taxes covered. Ranking order reflects, first, how directly the product files a small business's own tax return; second, breadth of entity coverage; third, published and verifiable pricing; and fourth, disclosed scale. Income tax products are ranked ahead of supporting tools because every business must file an income tax return. Several consumer tax brands, including H&R Block and FreeTaxUSA, blocked automated access to their pricing and product pages; because no claim about them could be verified, they are not ranked. TaxAct is included on the basis of its parent company's disclosures, without prices. No hands-on testing, user ratings or review-site scores were used.

The list

1

TurboTax Business (desktop)

Best for: Owners of S corps, partnerships and small C corps who prepare their own return

TurboTax Business is Intuit's do-it-yourself desktop product for entity returns. It handles S corporations, C corporations, partnerships, multi-member LLCs, trusts and estates, which in IRS terms means Forms 1120-S, 1120, 1065 and 1041. Alongside the main return it prepares W-2 and 1099 forms through Quick Employer Forms, distributes Schedule K-1s electronically, calculates asset depreciation and lets one licence prepare returns for several businesses.

For tax year 2026 the product is listed at US$194, with US$204 shown as the anticipated late-season price; the offer runs to 30 April 2027. The price includes federal preparation, printing and up to five federal e-files; state software is sold separately and state e-filing may carry additional fees.

The product is Windows-only and requires Windows 11 (64-bit) with administrator rights, which excludes Mac-only offices. Unlike Intuit's online expert service, the desktop program covers C corporations and trusts, so it remains the main Intuit route for a small C corporation filing without an accountant. There is no built-in review by a tax professional, and owners who are unsure about basis, depreciation elections or multi-state apportionment may need outside advice.

Key features

  • Forms 1120-S, 1120, 1065 and 1041
  • Quick Employer Forms for W-2 and 1099
  • Electronic K-1 distribution
  • Asset depreciation schedules
  • Multiple businesses on one licence
  • Up to 5 federal e-files included

Pricing

US$194 for tax year 2026 (US$204 late-season price); includes up to 5 federal e-files; state product and state e-file sold separately.

Vendor
Intuit
Platform
Windows 11 only
Price (TY2026)
US$194

Strengths

  • Covers C corporations and trusts as well as pass-throughs
  • One-off licence rather than subscription
  • Prepares W-2s, 1099s and K-1s

Limitations

  • Windows only
  • State software costs extra
  • No professional review included
2

TurboTax Experts for Business

Best for: Sole proprietors and pass-through entities wanting expert help online

Intuit also sells online business tax filing in two service levels. Expert Assist Business lets the owner prepare the return with on-demand help from a tax expert; Expert Full Service Business hands preparation to an expert entirely. Both cover sole proprietors filing Schedule C, S corporations filing Form 1120-S with K-1s and partnerships filing Form 1065 with K-1s.

Published prices are US$229 for a sole proprietor on Expert Assist (filed by 31 March to receive that price) and US$639 for an S corporation or partnership; Full Service for an S corporation or partnership is listed at US$1,549 if filed by 30 April. Full Service prices are estimates based on uploaded and expected forms, with the final price set at filing.

The online expert products have explicit exclusions: they do not support C corporations or entities electing C corporation treatment, trusts and estates, tax-exempt organisations, or returns needing more than five state filings. Owners in those situations need the desktop product or an accountant. The main attraction is access to a credentialed preparer without engaging a firm, but the price for pass-through entities approaches what some small accounting practices charge.

Key features

  • Schedule C, Form 1120-S and Form 1065
  • On-demand expert assistance
  • Full-service preparation option
  • K-1 schedules for owners
  • Online, no software install

Pricing

Expert Assist Business: US$229 (sole proprietor); US$639 (S corp or partnership). Expert Full Service Business: US$1,549 (S corp or partnership); sole-proprietor price set by situation. Prices tied to early filing dates; final price set at filing.

Vendor
Intuit
Entity coverage
Schedule C, 1120-S, 1065
Excludes
1120, 1041, nonprofits

Strengths

  • Professional involvement without hiring a firm
  • Works on any browser
  • Single vendor for business and personal returns

Limitations

  • No C corporation or trust support
  • Full Service pricing is an estimate until filing
  • Cap of five state filings
3

TaxAct

Best for: Owners already using TaxAct for personal returns

TaxAct is a consumer and professional tax software brand owned by Taxwell, a tax technology group whose portfolio also includes Drake Software and 1040.com. Taxwell describes TaxAct as its consumer filing brand, including an AI-assisted tool called TaxAct Intelligence, and sells TaxAct Professional as workflow software for tax firms. Across its brands the group reports more than 3 million DIY filers, more than 100,000 tax professionals, more than 24 million filings a year and 7 million small businesses and solopreneurs served.

TaxAct's own pricing pages blocked automated access during research for this list, so its current prices and form coverage could not be verified and are not reported here.

Buyers comparing TaxAct with TurboTax should check the current price of the business edition, which states are supported for entity e-filing and whether expert help is included, directly on TaxAct's site. Its main structural advantage is that firms using TaxAct Professional or Drake can work within the same corporate family's tools.

Key features

  • Consumer and business filing products
  • TaxAct Intelligence AI-assisted filing
  • TaxAct Professional for firms
  • Part of Taxwell with Drake and 1040.com

Pricing

Not verified: TaxAct's pricing pages could not be retrieved for this review.

Parent
Taxwell
Sister brands
Drake Software, 1040.com

Strengths

  • Part of a large tax group with professional products
  • Consumer and business filing under one brand
  • AI-assisted filing tool

Limitations

  • Prices could not be independently verified
  • Smaller expert network than Intuit's
  • Business products less known than TurboTax
4

Keeper

Best for: Freelancers, 1099 contractors and single-owner S corps

Keeper Tax, Inc., based in San Francisco, sells an app that tracks expenses and deductions throughout the year and then files the owner's return, with each return reviewed and signed by a tax professional. It targets freelancers and contractors, solo business owners, and S corporations and partnerships.

Bookkeeping features common to all plans include automatic expense tracking, AI categorisation of deductions, unlimited bank and card connections, income tracking and mileage tracking. The Standard plan, at US$199 a year, adds a federal return and up to two state returns. Premium, at US$399 a year, adds audit protection, three or more state returns, rentals, K-1s and investments, quarterly tax payments, meetings with a tax professional, amendments and late filing up to five years back. Business, at US$1,199 a year, adds a year-end book review and close plus S corporation (Form 1120-S) and partnership (Form 1065) filing. A Bookkeeping Only plan is US$20 a month, and every plan has a 14-day free trial.

Keeper's model combines bookkeeping and filing in a subscription, which is good value for a sole proprietor who would otherwise buy both. It does not prepare C corporation returns, and owners with employees still need payroll software.

Key features

  • Automatic expense and deduction tracking
  • Mileage tracking
  • Federal and state returns signed by a tax pro
  • Quarterly estimated payments (Premium)
  • Form 1120-S and 1065 filing (Business)
  • Year-end book review (Business)

Pricing

Bookkeeping Only: US$20/month. Standard: US$199/year. Premium: US$399/year. Business: US$1,199/year. 14-day free trial on all plans.

Headquarters
San Francisco, CA, US
Pricing
US$199–1,199/year
Trial
14 days

Strengths

  • Professional signs every return
  • Bookkeeping and filing in one subscription
  • Covers S corp and partnership returns on Business

Limitations

  • No C corporation returns
  • Business plan cost exceeds DIY software
  • Not a payroll or 1099-issuing tool
5

Drake Tax

Best for: Small accounting practices and in-house preparers handling many entity returns

Drake Software, LLC, based in Franklin, North Carolina, makes professional tax preparation software and is described on its site as a Taxwell company, a sister brand of TaxAct and 1040.com. It is aimed at accountants and enrolled agents rather than business owners, but it is relevant to small businesses because many outsource their entity returns to small practices that use it.

For tax year 2026, Drake Tax Pro allows unlimited individual and business returns (or 250 returns on a lower tier) and lists a multi-user price of US$3,145 against a retail US$3,295. Drake Tax 1040 covers individual returns, with business returns at US$74.99 each. A desktop Pay-Per-Return package costs US$379.99 for ten individual returns, and the cloud product Drake Tax Online starts at US$299.99 including the first user, with additional users at US$99, individual returns at US$49.99 and business returns at US$74.99. Every edition includes e-filing, multi-state filing, diagnostics and free US-based support by phone, email or chat.

Licences are annual, per physical site and EFIN, and practice-management tools such as client portals, workflow and e-signature are a separate bundle starting at US$599.

Key features

  • Individual and business returns
  • Desktop and cloud (Drake Tax Online)
  • Multi-state filing and diagnostics
  • Client billing and role-based access
  • Free US-based support
  • Free trial available

Pricing

TY2026: Drake Tax Pro multi-user US$3,145 (retail US$3,295). Pay-Per-Return US$379.99 for 10 individual returns; extra individual US$49.99, business US$74.99. Drake Tax Online US$299.99 incl. first user; extra users US$99. Practice Essentials bundle from US$599.

Headquarters
Franklin, North Carolina, US
Parent
Taxwell
Licence
Annual, per site and EFIN

Strengths

  • Unlimited-return licence option
  • Per-return pricing for small volumes
  • Support included at no charge

Limitations

  • Designed for preparers, not owners
  • Practice-management tools cost extra
  • Per-site licensing for desktop
6

QuickBooks Online

Best for: Businesses that want tax-ready books and quarterly estimates

QuickBooks Online is Intuit's cloud accounting product, included here because, for most small businesses, the quality of the books determines the cost and accuracy of the tax return. Its US price list runs from a Free plan for one user through Simple Start at US$38, Essentials at US$85, Plus at US$140 and Advanced at US$340 per month, with introductory discounts for the first three months.

Several tax-specific features are tied to tier. Simple Start and above advertise deduction maximisation through categorisation; Essentials and above include Business Tax AI to estimate quarterly payments; Plus and Advanced include Sales Tax AI to catch discrepancies before filing; and Advanced includes free 1099 e-filing bundled with Bill Pay Elite approval workflows. Accountant access is included, with two accountant seats on most paid tiers and three on Advanced.

QuickBooks does not itself file income tax returns. Its value is in producing a clean trial balance that flows into TurboTax Business, an accountant's professional software or a filing service. Sales tax features are less complete than dedicated engines such as Avalara or TaxJar for multi-state e-commerce sellers.

Key features

  • Categorisation for deductions
  • Quarterly estimated tax (Essentials+)
  • Sales Tax AI (Plus, Advanced)
  • 1099 e-filing (Advanced)
  • Accountant user seats

Pricing

Free: US$0. Simple Start: US$38/month. Essentials: US$85/month. Plus: US$140/month. Advanced: US$340/month. 50% off for 3 months on paid plans.

Vendor
Intuit
Pricing
US$0–340/month
Users
1–25 by plan

Strengths

  • Feeds directly into Intuit and most accountant software
  • Quarterly estimate tooling
  • Free tier available

Limitations

  • Does not file income tax returns
  • Tax features gated to higher tiers
  • Sales tax handling lighter than specialist engines
7

Avalara

Best for: Multi-state sellers and growing companies with ERP-based billing

Avalara is a specialist in indirect tax automation. It reports more than 41,000 customers in more than 75 countries and more than 4,700 employees across 15 offices; its AvaTax product page also cites over 200,000 direct and indirect customers and more than 54 billion transactions or API calls a year.

AvaTax calculates sales and use tax line by line, with an average response under 10 milliseconds, using geospatial address matching rather than ZIP codes across more than 12,000 US jurisdictions and more than 900,000 tax rules. It tracks economic nexus, supports product taxability codes with AI item classification, handles use tax accrual on purchases and offers more than 1,400 partner integrations including Shopify, NetSuite, QuickBooks, SAP and Salesforce. Avalara is a Streamlined Sales Tax Certified Service Provider, through which qualifying sellers may receive state-funded calculation and filing in participating states.

AvaTax pricing is usage-based on annual transactions, with plans starting at US$699 per state per year; Avalara Select sales tax and returns plans start at US$69 a month. For a single-state seller, a lighter tool such as TaxJar or Stripe Tax may be cheaper.

Key features

  • Real-time sales tax calculation
  • Geospatial jurisdiction matching
  • Economic nexus tracking
  • Use tax accrual for purchases
  • 1,400+ integrations
  • SST certified service provider

Pricing

AvaTax from US$699 per state per year, tiered by annual transactions; Avalara Select from US$69/month.

Customers
41,000+ (vendor figure)
Employees
4,700+
Integrations
1,400+

Strengths

  • Deepest jurisdiction and rules coverage
  • Very wide integration catalogue
  • SST programme can offset costs

Limitations

  • Per-state pricing adds up for small sellers
  • Configuration effort for complex catalogues
  • Enterprise orientation in sales process
8

TaxJar

Best for: Shopify, Amazon and multi-channel e-commerce sellers

TaxJar was founded in 2013 to automate US sales tax compliance for e-commerce companies, and was acquired by Stripe in 2021. It says more than 20,000 businesses use it.

The product imports orders from marketplaces and stores, calculates sales tax, tracks nexus and files returns through its AutoFile service. Both plans include a product tax code catalogue, exemption customer support, exemption certificate storage and an address validation API, with up to ten team users.

Pricing is tiered by monthly order volume. At the 200-order tier, Starter costs US$39 a month with up to three data-import integrations and two free AutoFile credits a year (further credits US$50); Professional costs US$99 a month with up to ten integrations, phone support, a customer success manager, four AutoFile credits (further credits US$55) and API access. Annual billing saves at least 10%, and flex fees let a seller move temporarily to a higher tier in peak months. Starter has a 30-day free trial; Professional is sold through sales. TaxJar itself notes that Stripe Tax may suit sellers whose billing already runs on Stripe.

Key features

  • Marketplace and store order imports
  • Sales tax calculation API
  • Nexus tracking
  • AutoFile return filing
  • Exemption certificate storage
  • Address validation

Pricing

At 200 orders/month: Starter US$39/month (2 AutoFile credits/yr; extra US$50); Professional US$99/month (4 credits; extra US$55). Annual billing saves 10%+. 30-day trial on Starter.

Founded
2013
Owner
Stripe (since 2021)
Customers
20,000+ (vendor figure)

Strengths

  • Published, order-based pricing
  • Built around marketplace sellers
  • Free trial without card

Limitations

  • Each filing consumes paid credits beyond the allowance
  • API access only on Professional
  • US sales tax focus
9

Stripe Tax

Best for: SaaS and online businesses billing through Stripe

Stripe Tax is the tax module of the payments company Stripe. It monitors where a business has obligations, calculates tax across more than 700 product and service types and collects it in more than 100 countries.

Two plans are offered. Tax Basic has no recurring fee: it costs 0.5% per transaction where the seller is registered when used through Stripe Billing, Checkout, Invoicing or Payment Links, or 50 cents per transaction with ten calculation calls included when used through the API. Tax Complete adds registrations, automated filings and filing-ready data on a one-year contract, from US$90 a month for two registrations, 200 transactions and four filings a year, up to US$1,500 a month for ten registrations, 5,000 transactions a month and 32 filings a year.

Stripe handles registration and filing directly in the US, Canada (federal simplified) and the EU non-Union OSS scheme, and uses partners elsewhere, with partner pricing. The product is most efficient for companies whose revenue already flows through Stripe; businesses selling through multiple payment processors or marketplaces may find a standalone engine more practical.

Key features

  • Obligation monitoring and alerts
  • Calculation in 100+ countries
  • Registration in 90+ countries
  • Automated filings (Tax Complete)
  • No-code integration with Stripe Billing and Checkout

Pricing

Tax Basic: 0.5% per transaction (no-code) or US$0.50 per transaction (API). Tax Complete: US$90, US$430, US$1,000 or US$1,500/month on a 1-year contract; custom above.

Vendor
Stripe
Calculation coverage
100+ countries
Pricing
0.5% per transaction or from US$90/month

Strengths

  • No setup for existing Stripe users
  • International VAT and GST coverage
  • Transparent tiered pricing

Limitations

  • Percentage fee grows with revenue
  • Best value only inside Stripe
  • Non-US filings often via partners
10

Numeral

Best for: Growing online sellers wanting done-for-you filing without a contract

Numeral, operated by Numeral Two, Inc., provides managed US sales tax compliance and announced a US$100 million Series C round led by Insight Partners and Salesforce Ventures. It guarantees on-time filing and states that it pays resulting penalties and interest if it misses one.

The free Monitoring plan connects to a seller's stores or billing platforms, runs a nexus study, monitors physical and economic nexus, alerts on new jurisdictions and audits historical exposure. The Professional plan adds registrations, filings and remittance in all US states, autofiling, a virtual mailbox, AI product classification, exemption certificate management and integrations with Shopify, Stripe, Amazon and QuickBooks; the first 50 exemption certificates are free. Enterprise adds coverage in more than 90 countries, a tax engine and API, and consultations with tax lawyers.

Pricing is per event rather than per month: US$75 per filing and US$150 per registration on Professional, with no setup fee and no contract required on standard month-to-month accounts. This suits sellers registered in a handful of states; at high filing frequencies across many states, per-filing costs can exceed flat-fee alternatives.

Key features

  • Free nexus study and monitoring
  • Registrations and filings in all US states
  • Filing-on-time guarantee
  • AI product classification
  • Exemption certificate management
  • Shopify, Stripe, Amazon, QuickBooks integrations

Pricing

Monitoring: free. Professional: US$75 per filing, US$150 per registration; no setup fee; month-to-month. Enterprise: custom.

Legal name
Numeral Two, Inc.
Funding
US$100m Series C (Insight Partners, Salesforce Ventures)
Pricing
US$75/filing

Strengths

  • Free nexus monitoring
  • No contract on standard plans
  • Penalty guarantee

Limitations

  • Per-filing cost rises with filing frequency
  • International coverage Enterprise-only
  • Younger company than Avalara
11

Quaderno

Best for: Digital product and SaaS sellers with international customers

Quaderno is a tax calculation and invoicing service that is part of the Visma group. It calculates sales tax, VAT and GST worldwide, issues automatic and customisable invoices, supports e-invoicing compliance, monitors nexus and thresholds, and produces multichannel tax reports; return filing and registration are offered as a done-for-you service.

Plans are priced monthly by transaction volume: Hobby at 24 a month for 25 transactions and one jurisdiction; Startup at 41 for 250 transactions; Business at 83 for 1,000 transactions; and Growth at 124 for 2,500 transactions, the last three with unlimited users, jurisdictions and integrations. Enterprise is custom. API calls are capped at ten times the included transactions, and a business exceeding its limit is moved automatically to the next tier. A seven-day free trial needs no credit card. (The pricing page shows amounts without a currency label in the text extracted for this review.)

Quaderno is most useful to software and digital-goods sellers with customers in many countries who need compliant invoices as well as calculation. It is lighter than Avalara on US product taxability rules.

Key features

  • Sales tax, VAT and GST calculation
  • Automatic compliant invoices
  • E-invoicing support
  • Nexus and threshold alerts
  • Done-for-you filing and registration
  • API

Pricing

Hobby 24/month; Startup 41/month; Business 83/month; Growth 124/month; Enterprise custom. Automatic tier upgrade above limit; 7-day trial.

Group
Visma
Pricing
From 24/month
Trial
7 days

Strengths

  • Invoicing and tax calculation in one
  • Global VAT/GST coverage
  • Low entry tier

Limitations

  • Automatic upgrades if volume spikes
  • Filing is a separate service
  • Less depth on US product taxability
12

Tax1099

Best for: Businesses issuing contractor 1099s and small W-2 runs

Tax1099 is an online filing service for information returns operated by Zenwork, Inc., with offices in Fayetteville, Arkansas and Westlake, Texas. It describes itself as an IRS-authorised e-filing platform able to file with the IRS, the Social Security Administration and the Combined Federal/State Filing programme.

The relevance for small businesses is the federal e-file requirement: since tax year 2023, any business with ten or more information returns, counting W-2s, must file them electronically. Tax1099 creates, validates and schedules 1099, W-2 and related forms, generates 1096 and W-3 summaries, resubmits IRS-rejected forms, runs real-time and bulk TIN matching and USPS address validation, collects W-9 and W-8 forms and delivers recipient copies electronically or by print and mail. Data can be uploaded in bulk or imported through more than 12 integrations including QuickBooks, Xero and BILL.

Prices start from US$0.72 per form, with payroll forms from US$1.99 per form for tax year 2026; a full schedule is available through a quote or calculator. The IRS also runs a free portal, IRIS, which handles small volumes without software.

Key features

  • 1099, W-2 and related form e-filing
  • Federal, state and SSA filing
  • TIN matching and address validation
  • W-9/W-8 collection
  • Recipient eDelivery and print-and-mail
  • QuickBooks, Xero and BILL imports

Pricing

From US$0.72 per form; payroll forms from US$1.99 per form (TY2026); full pricing by calculator or quote.

Operator
Zenwork, Inc.
Offices
Fayetteville, AR; Westlake, TX
Pricing
From US$0.72/form

Strengths

  • Handles the e-file mandate for small volumes
  • TIN matching reduces IRS notices
  • Many accounting imports

Limitations

  • Full price list not published on the homepage
  • Does not prepare income tax returns
  • IRS IRIS portal is a free alternative for low volumes

Comparison table

ProductTypeForms or taxesStarting priceProfessional reviewPlatform
TurboTax BusinessDIY income tax1120-S, 1120, 1065, 1041US$194NoWindows
TurboTax Experts for BusinessAssisted income taxSchedule C, 1120-S, 1065US$229YesWeb
TaxActDIY income taxBusiness and individualNot verifiedOptionalWeb / desktop
KeeperBookkeeping + filingSchedule C; 1120-S, 1065 on BusinessUS$199/yearYesWeb / mobile
Drake TaxPreparer softwareIndividual and businessUS$299.99 (Online)PreparerDesktop / cloud
QuickBooks OnlineAccountingQuarterly estimates, sales tax, 1099FreeAccountant seatsWeb
AvalaraSales taxUS sales and use tax; globalUS$699/state/yearNoCloud API
TaxJarSales taxUS sales taxUS$39/monthNoCloud
Stripe TaxSales tax / VAT100+ countries0.5% per transactionNoCloud (Stripe)
NumeralManaged sales taxAll US statesFree monitoring; US$75/filingManaged serviceCloud
QuadernoSales tax / VAT / GSTGlobal24/monthNoCloud
Tax1099Information returns1099, W-2, relatedUS$0.72/formNoWeb

Alternatives by use case

  • Very low-cost individual return with business income: 1040.com, a Taxwell brand, charges one flat US$34.99 for federal and state returns, though its page does not specifically mention Schedule C.
  • Large enterprise indirect tax: Vertex, used by about 4,500 companies, covers 195 countries and integrates with SAP, Oracle and Workday.
  • Free information-return filing: the IRS IRIS Taxpayer Portal.
  • Hiring a preparer: accounting firms for startups and bookkeeping services typically use professional software such as Drake Tax.

Recent developments

  • Tax year 2026 season: TurboTax Business priced at US$194, rising to US$204 late in the season; offer runs to 30 April 2027.
  • 2026: Drake lists tax-year 2026 discount prices valid through 30 November, with retail prices from 1 December.
  • 2026: Avalara offers MCP servers that let AI agents call AvaTax APIs; Taxwell promotes TaxAct Intelligence, an AI-assisted filing tool.
  • Ongoing: S corporations filing ten or more returns of any type in a calendar year must e-file Form 1120-S, for returns due on or after 1 January 2024.

Frequently asked questions

What is the best tax software for an S corporation?

For owners preparing the return themselves, TurboTax Business (US$194 for tax year 2026, Windows only) supports Form 1120-S with K-1s. Owners who want a professional to prepare or sign the return can use TurboTax Expert Full Service Business or Keeper's Business plan at US$1,199 a year, which also includes bookkeeping.

Can a sole proprietor use personal tax software?

Yes. A sole proprietor reports business profit or loss on Schedule C attached to Form 1040, and also files Schedule SE for self-employment tax and Form 1040-ES for quarterly estimates. Products such as TurboTax's sole-proprietor option and Keeper's Standard plan handle these forms.

Does TurboTax support C corporation returns?

The Windows desktop edition of TurboTax Business supports C corporations as well as S corporations, partnerships and trusts. Intuit's online Expert Assist and Full Service business products do not support C corporations, entities electing C corporation treatment, trusts, estates or tax-exempt organisations.

Do small businesses have to e-file 1099s?

Since tax year 2023, a business with ten or more information returns in total, including W-2s, must file them electronically. The IRS offers a free IRIS portal for this, and paid services such as Tax1099 or QuickBooks Advanced also e-file 1099s.

What is the difference between Avalara and TaxJar?

Both calculate and file US sales tax. Avalara is broader, with more than 1,400 integrations and coverage of over 12,000 US jurisdictions, and AvaTax starts at US$699 per state per year. TaxJar, owned by Stripe since 2021, targets e-commerce sellers with order-based plans from US$39 a month.

Is Stripe Tax enough for sales tax compliance?

Stripe Tax Basic calculates and collects tax for 0.5% per transaction but does not file returns. Tax Complete adds registrations and filings from US$90 a month. It suits businesses billing through Stripe; companies also selling through marketplaces or other processors may need a standalone tool.

How much does small business tax software cost?

Prices published in November 2026 range from about US$0.72 per 1099 form and US$39 a month for sales tax, to US$194 for TurboTax Business desktop, US$229 to US$639 for expert-assisted online filing and US$1,549 for full-service preparation of an S corporation or partnership return.

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