So, you're a business owner, a freelancer, or an independent contractor, and tax season is looming? You're probably wondering, "How much is TurboTax for business, and is it the right tool for me?" Well, you've come to the right place! Navigating the world of business taxes can feel like deciphering ancient scrolls, but with the right guidance, it becomes much clearer.
Let's break down the costs and considerations for using TurboTax for your business, step-by-step, so you can confidently tackle your taxes.
Understanding TurboTax for Business: It's Not Always One Size Fits All!
Before we dive into the numbers, it's crucial to understand that "TurboTax for business" isn't a single product. TurboTax offers different versions tailored to various business structures and complexities. This is where many people get confused, so let's clarify.
The Two Main Paths for Businesses with TurboTax:
TurboTax Self-Employed (Online Version): This is generally for single-member LLCs, sole proprietors, independent contractors, and freelancers who file their business income and expenses on a Schedule C (Form 1040, U.S. Individual Income Tax Return). Your business income and deductions are reported on your personal tax return.
TurboTax Business (Desktop Software): This is for multi-member LLCs (taxed as partnerships), S-Corps, C-Corps, trusts, and estates. These business entities file separate tax returns (e.g., Form 1065 for partnerships, Form 1120-S for S-Corps, Form 1120 for C-Corps). Important Note: TurboTax Business is a desktop-only software, not an online version, and requires a Windows PC.
Now that you know the fundamental difference, let's explore the pricing. Keep in mind that prices are subject to change, especially as tax season progresses or new tax years begin. The information below reflects pricing as of May/June 2025 for the 2024 tax year.
Step 1: Figure Out Your Business Structure (This is Crucial for Pricing!)
Alright, let's get started! Are you a lone wolf, a dynamic duo, or a full-fledged corporation? Your business structure is the single most important factor in determining which TurboTax product you'll need and, consequently, how much it will cost.
Sub-heading 1.1: I'm a Sole Proprietor, Freelancer, or Single-Member LLC
If your business is a sole proprietorship, you're an independent contractor (receive 1099-NEC), or you have a single-member LLC that's taxed as a sole proprietorship, you'll likely use TurboTax Self-Employed (Online). Your business income and expenses are reported on Schedule C of your personal Form 1040.
Sub-heading 1.2: My Business is a Multi-Member LLC, Partnership, S-Corp, or C-Corp
If your business has multiple owners and is structured as a multi-member LLC (taxed as a partnership), an S-Corporation, a C-Corporation, or a Trust/Estate, you'll need the TurboTax Business Desktop Software. These entities require dedicated business tax forms separate from your personal return.
Step 2: Unpacking the TurboTax Self-Employed (Online) Costs
For those falling into the sole proprietor/single-member LLC category, here's a detailed look at the potential costs for TurboTax Self-Employed (Online):
Sub-heading 2.1: Base Federal Filing Cost
TurboTax Self-Employed (Online): As of May/June 2025, the base cost for federal filing is around $129. This covers your federal tax return and the necessary Schedule C for your business income and expenses.
Sub-heading 2.2: State Filing Fees – The Often Overlooked Cost!
State Returns: This is where the price can increase significantly. Each state return typically costs an additional $59. If you operate in multiple states, this cost will multiply. So, if you file federal and one state, you're looking at approximately $129 + $59 = $188.
Sub-heading 2.3: Upgrades for Expert Help – When You Need a Helping Hand
TurboTax offers different levels of support that can impact the final price:
Live Assisted: If you want to do your own taxes but have the option to get unlimited expert help via video or phone as you go, and a final review of your return by a tax professional before you file, this upgrade can add anywhere from $129 to $260 to your base cost. This means your total could jump to $258 or more (federal + one state + Live Assisted).
Full Service: Prefer to hand everything over to a tax expert and have them prepare and file your taxes for you? The Full Service option can push your total bill up to $389 or more. This is the "done for you" option and will be the most expensive.
Sub-heading 2.4: Other Potential Add-ons and Hidden Fees
While the core costs are federal, state, and expert help, be aware of these potential extras:
Audit Defense: This is an optional add-on that provides representation and support in case of an IRS audit. It typically costs an additional fee.
Bank Products/Refund Advance: If you choose to pay your TurboTax fees directly from your tax refund, there's usually a processing fee charged by the bank (around $40 or more).
Extra Forms: While TurboTax Self-Employed covers most common forms, sometimes very specific or complex situations might require an upgrade or alert you to forms you didn't anticipate.
Step 3: Deciphering the TurboTax Business (Desktop) Costs
If your business is a multi-member LLC, S-Corp, C-Corp, Trust, or Estate, you'll be using the TurboTax Business Desktop Software.
Sub-heading 3.1: Base Federal Filing Cost
TurboTax Business (Desktop): The upfront cost for the federal version of TurboTax Business desktop software is typically around $180. This price usually includes the federal tax preparation and the ability to e-file up to 5 federal business returns.
Sub-heading 3.2: State Filing Fees – Don't Forget Your State Obligations!
State Returns (Desktop): Similar to the online versions, state returns are almost always an additional cost. For the desktop business software, each state return generally costs around $60.
E-filing Fees for State Returns (Desktop): This is a crucial point for desktop users: while federal e-filing is often included, e-filing your state business returns can incur an additional fee of about $25 per state. Otherwise, you'll need to print and mail them.
Sub-heading 3.3: Important Considerations for Desktop Software
Windows PC Required: As mentioned earlier, TurboTax Business desktop software does not have a Mac version or an online version. You'll need a Windows computer to install and run it.
No Live Assisted/Full Service Upgrades: Unlike the online versions, the desktop TurboTax Business software typically does not offer direct Live Assisted or Full Service upgrades within the software itself. If you need expert help, you'd generally seek out an independent tax professional.
Multiple Businesses: One advantage of the desktop software is the ability to prepare returns for multiple businesses (up to 5 federal e-files included in the base cost). This can be a cost-saver if you own several different entities.
Step 4: Comparing TurboTax to Alternatives (and Why Pricing Varies)
Now that you have a clearer picture of TurboTax's pricing, you might be asking, "Is it worth it?" and "Are there cheaper options?"
Sub-heading 4.1: Why TurboTax Tends to Be Pricier
TurboTax is often considered one of the more expensive tax software options on the market. This higher price point is generally attributed to:
User-Friendly Interface: TurboTax is renowned for its intuitive, step-by-step guidance and excellent user experience, making complex tax situations more manageable for individuals and small business owners.
Robust Features: It offers comprehensive features, including extensive deduction finders, direct import from many financial institutions, and thorough error checks.
Brand Recognition and Support: As a leading brand, TurboTax invests heavily in marketing and customer support (especially with their Live options).
Sub-heading 4.2: When TurboTax Might Be Your Best Bet
You Value Ease of Use: If you want a smooth, guided experience and are willing to pay a premium for it, TurboTax excels here.
Complex Self-Employment Income: If you have various types of self-employment income, numerous deductions, or need to navigate specific business schedules, TurboTax Self-Employed can be very helpful.
Specific Business Entity (for Desktop): If you have a multi-member LLC, S-Corp, or C-Corp, TurboTax Business is a dedicated solution for those entity types.
Access to Expert Help: If the peace of mind of having a tax professional review your return (Live Assisted) or prepare it entirely (Full Service) is valuable to you, TurboTax offers those integrated options.
Step 5: Strategies to Save Money on TurboTax for Business
While TurboTax can be an investment, there are ways to potentially reduce your costs:
Sub-heading 5.1: File Early!
Early Bird Discounts: TurboTax often offers discounts and promotional pricing earlier in the tax season (typically late January to mid-February). Prices tend to increase closer to the tax deadline.
Sub-heading 5.2: Be Prepared and Organize Your Documents
Avoid Upgrades Due to Lack of Information: Sometimes, users end up upgrading to a higher-priced version or seeking expert help because they're unsure how to handle a specific tax situation. Having all your documents organized (income statements, expense records, receipts, etc.) can help you confidently navigate the software yourself.
Utilize Import Features: If you use QuickBooks or other accounting software, many TurboTax versions allow you to import data, saving you time and potentially reducing errors that might lead to seeking paid assistance.
Sub-heading 5.3: Consider Desktop vs. Online (if applicable)
Multiple Returns (Desktop Benefit): If you have multiple sole proprietorships or single-member LLCs (each requiring a Schedule C), sometimes the desktop Home & Business version (which is essentially the desktop equivalent of Self-Employed for individuals, but includes Schedule C) can be more cost-effective as it allows multiple federal e-files from one purchase. However, for multi-member LLCs, S-Corps, etc., you're already on the desktop path.
Sub-heading 5.4: Do You Really Need the Live/Full Service Option?
Assess Your Confidence: If your business finances are relatively straightforward and you're comfortable with tax concepts, you might not need the Live Assisted or Full Service options, which significantly increase the cost. The Self-Employed online version itself provides ample guidance.
Conclusion: Making an Informed Decision
Deciding how much TurboTax will cost for your business isn't a simple "X amount." It depends heavily on your business structure, the level of support you desire, and how many states you need to file in.
For many freelancers, sole proprietors, and single-member LLCs, TurboTax Self-Employed (Online) offers a comprehensive solution, with a federal cost of around $129, plus $59 per state. Adding expert help can significantly increase this.
For multi-member LLCs, S-Corps, and C-Corps, the TurboTax Business (Desktop) software is the required tool, costing approximately $180 for federal, plus $60 per state, and potential $25 e-filing fees per state.
Always visit the official TurboTax website (turbotax.intuit.com) for the most current and accurate pricing for the tax year you are filing, as prices can change. By understanding your business structure and your personal comfort level with tax preparation, you can choose the TurboTax product that best fits your needs and budget.
10 Related FAQ Questions
How to determine if I need TurboTax Self-Employed or TurboTax Business?
Answer: You need TurboTax Self-Employed (online) if you are a sole proprietor, independent contractor, or single-member LLC (taxed as a sole proprietorship) and report your business income/expenses on Schedule C of your personal tax return. You need TurboTax Business (desktop) if your entity is a multi-member LLC (taxed as a partnership), S-Corp, C-Corp, trust, or estate, as these require separate business tax returns (Form 1065, 1120-S, 1120, etc.).
How to reduce the cost of TurboTax for my small business?
Answer: File early in the tax season to catch potential discounts, organize all your financial documents to avoid needing costly expert assistance, and consider if the base DIY version meets your needs before opting for Live Assisted or Full Service upgrades.
How to get the best price on TurboTax Business desktop software?
Answer: Look for promotions directly on the Intuit website or through reputable retailers (like Amazon, Best Buy) early in the tax filing season. Prices tend to be lowest at the beginning of the tax year and increase closer to the filing deadline.
How to file state business taxes with TurboTax?
Answer: For TurboTax Self-Employed (online), state filing options are integrated into the flow, and each state typically costs an additional fee. For TurboTax Business (desktop), you'll purchase state modules separately for about $60 per state, and there may be an additional $25 e-filing fee per state.
How to use TurboTax if I have multiple single-member LLCs?
Answer: If all your single-member LLCs are taxed as sole proprietorships, you can typically report them all on separate Schedule C forms within the same TurboTax Self-Employed (online) or TurboTax Home & Business (desktop) return, without needing multiple purchases of the software.
How to import QuickBooks data into TurboTax for business?
Answer: TurboTax generally offers features to import data from QuickBooks (and other financial software) into your tax return. Look for the "import" option within the software, usually early in the setup process, and follow the prompts. (Note: QuickBooks import may not be available for TurboTax Desktop Business on a Mac, as there is no Mac version of TurboTax Business.)
How to upgrade from TurboTax Self-Employed to a Live Assisted or Full Service option?
Answer: If you start with the DIY TurboTax Self-Employed online version, you'll typically see options to upgrade to Live Assisted or Full Service as you progress through your return, often before you are ready to file.
How to know if my LLC is a single-member or multi-member for TurboTax purposes?
Answer: A single-member LLC has only one owner and is generally taxed as a sole proprietorship by default (reported on Schedule C). A multi-member LLC has two or more owners and is typically taxed as a partnership (requiring Form 1065). Your LLC's operating agreement and how you've elected to be taxed by the IRS will confirm this.
How to find out the exact current price of TurboTax for business?
Answer: The most accurate and up-to-date pricing will always be on the official TurboTax website (turbotax.intuit.com). Look for their "Products" or "Pricing" sections for the current tax year.
How to get audit support with TurboTax for my business return?
Answer: TurboTax offers an optional add-on service called "Audit Defense" for an additional fee, which provides professional representation and assistance in case your business return is audited by the IRS. Some higher-tier Live service packages might also include some level of audit support.