Do you own a business or freelance? Are you wrestling with the idea of tackling your business taxes yourself, but are unsure about the costs involved with tax software? You're in the right place! Understanding "how much is TurboTax Business" can feel like navigating a maze, with different pricing structures for various business types and levels of support. This comprehensive guide will break down the costs, help you understand which version is right for you, and outline potential additional fees. Let's dive in and demystify TurboTax Business pricing!
Demystifying TurboTax Business: A Step-by-Step Guide to Understanding Costs
TurboTax offers various products tailored to different tax situations. For businesses, the landscape can be a bit more nuanced than simply filing a personal 1040. The cost largely depends on your business structure and the level of assistance you require.
Step 1: Identify Your Business Structure – This is Crucial!
Before you even think about pricing, the first and most critical step is to accurately identify your business structure. Are you a sole proprietor, an LLC, a partnership, or a corporation? This single factor determines which TurboTax product you'll need and, consequently, how much you'll pay.
Sole Proprietor/Independent Contractor/Freelancer (Single-member LLC): If you operate as a sole proprietor, a freelancer, an independent contractor, or have a single-member LLC (meaning you're the only owner and it's taxed as a sole proprietorship), you'll typically use TurboTax Self-Employed (often referred to as TurboTax Premium Online in some iterations). This is an online-based product designed to handle Schedule C income and expenses, which are reported on your personal tax return (Form 1040).
Multi-Member LLCs, Partnerships, S-Corporations, C-Corporations: If your business is structured as a multi-member LLC (taxed as a partnership), a partnership (Form 1065), an S-Corporation (Form 1120-S), or a C-Corporation (Form 1120), you'll need TurboTax Business. This is desktop software and is specifically designed for these more complex business entities. It is not an online version.
Take a moment right now and confirm your business structure. Knowing this will streamline your understanding of the pricing options.
Step 2: Explore TurboTax Product Options and Their Base Costs
Once you know your business structure, you can pinpoint the relevant TurboTax product and its starting price. Keep in mind that prices can fluctuate throughout the tax season, with early-bird discounts often available. The prices mentioned below are based on current estimates for the 2025 tax season (for filing 2024 taxes).
Sub-heading: For Sole Proprietors, Freelancers, and Single-Member LLCs (Taxes on Schedule C)
TurboTax Self-Employed (Online): This online version is the go-to for individuals with self-employment income.
Federal Filing: Typically ranges from $129 to $149. This covers your federal tax return (Form 1040) including Schedule C for your business income and expenses.
State Filing: This is almost always an additional cost, usually around $59 per state. If you operate in multiple states, this can add up quickly.
Key Features: Designed to help you find industry-specific deductions, snap and auto-fill 1099-NEC and 1099-K forms, track mileage and vehicle deductions, and get guidance on home office expenses.
Sub-heading: For Multi-Member LLCs, Partnerships, S-Corps, and C-Corps
TurboTax Business (Desktop Software): This is a downloadable software program for Windows PCs (note: there is no Mac version for this specific product).
Federal Filing (Software Purchase): The cost of the desktop software itself is usually around $180 to $190. This includes 5 federal e-files.
State Filing: State tax preparation is sold separately, typically costing around $60 per state download.
E-filing State Returns: A surprising additional cost that often catches users off guard is the e-filing fee for state returns with the desktop version, which can be around $25 per state. Otherwise, you'll need to print and mail your state returns.
Key Features: Guidance and support for S-Corp, partnership, C-Corp, and multi-member LLC or trust tax forms. It also allows you to create and e-file W-2s and 1099s for your employees and contractors using Quick Employer Forms.
Step 3: Consider the "Live" Options and Their Costs
TurboTax offers different levels of support, which can significantly impact the final price. These "Live" options connect you with tax experts.
Sub-heading: TurboTax Live Assisted
This option allows you to do your own taxes with the ability to connect with a tax expert for unlimited answers and advice, and a final review before you file.
For Self-Employed (Online):
Federal Filing: Can range from $209 to $258 (including federal and one state filing).
State Filing: State e-filing is typically an additional $69 per state.
For Business (Desktop Software - Limited Availability/Specific Services): While primarily a desktop product, some "Live" assistance might be offered for business entities, but it's often more tailored to the "Full Service" model for these complex returns. It's best to check the TurboTax website directly for specific Live Assisted offerings for TurboTax Business desktop software.
Sub-heading: TurboTax Live Full Service
With this premium option, a dedicated tax expert does your taxes for you from start to finish. You simply upload your documents, and they handle the rest.
For Self-Employed (Online):
Federal Filing: Prices typically start around $389 and can go higher depending on the complexity of your return. This generally includes federal and one state return.
State Filing: Additional state filings will incur further charges, usually around $69 per state.
For Business (Desktop Software - Expert Preparation): For multi-member LLCs, partnerships, and corporations, this can be a significant investment, often starting much higher due to the complexity of these returns. Pricing is highly variable and usually requires a consultation.
Step 4: Be Aware of Potential Additional Costs
Beyond the base price and "Live" services, several other factors can increase your final TurboTax bill.
Multiple State Filings: As mentioned, each additional state return is an extra fee. If your business operates in several states, this can quickly inflate your total cost.
E-filing Fees (for Desktop Business): This is a hidden cost for users of the TurboTax Business desktop software. While federal e-filing is often included, each state e-file can cost an additional $25.
Bank Products/Refund Advances: If you opt for a refund advance or choose to have your TurboTax fees deducted from your tax refund, financial institutions typically charge an additional fee for this convenience, often $40 or more.
Prior Year Returns: If you need to file a prior year's business return, you'll likely need to purchase the software for that specific tax year, incurring separate costs.
Audit Defense: While some TurboTax products offer basic audit support, enhanced audit defense services are often an upsell.
Promotional Pricing vs. Standard Pricing: Be aware that TurboTax often displays "starting at" or promotional pricing early in the tax season. The full, standard rates can be significantly higher, especially closer to the tax deadline (April 15th for most individual and some business returns, March 15th for partnerships and S-Corps).
Step 5: Weigh the Value Against the Cost
Ultimately, the "cost" of TurboTax Business isn't just a number; it's about the value it provides for your specific situation.
Are you confident in doing your own business taxes? If so, the Self-Employed online version or the desktop Business software might be a cost-effective solution.
Do you have a complex business structure or unusual transactions? The added cost of Live Assisted or Full Service might be a worthwhile investment to ensure accuracy and maximize deductions.
Time vs. Money: Consider how much your time is worth. If spending hours trying to figure out complex tax forms takes away from your business operations, paying for expert assistance might be a smart financial move.
Pro Tip: Always verify the current pricing directly on the official TurboTax website when you are ready to file, as pricing models and offers can change.
10 Related FAQ Questions
Here are 10 frequently asked questions about TurboTax Business, with quick answers:
How to choose between TurboTax Self-Employed and TurboTax Business?
Choose TurboTax Self-Employed (online) if you are a sole proprietor, freelancer, independent contractor, or have a single-member LLC taxed as a sole proprietorship. Choose TurboTax Business (desktop software) if you have a multi-member LLC, partnership, S-Corporation, or C-Corporation.
How to save money on TurboTax Business?
File early to take advantage of promotional pricing, consider a desktop version if you have multiple businesses of the same entity type (as the desktop software typically includes multiple federal e-files), and only pay for "Live" support if you truly need expert assistance or a review.
How to find out the exact price of TurboTax Business for my situation?
The most accurate way is to visit the official TurboTax website (turbotax.intuit.com) and go through their product selection process, which will guide you to the appropriate version and display the current pricing.
How to know if TurboTax Business (desktop) will work on my computer?
TurboTax Business desktop software currently only works on Windows PCs. There is no Mac version available.
How to handle state business taxes with TurboTax?
Both TurboTax Self-Employed (online) and TurboTax Business (desktop) offer state tax filing as an add-on, typically for an additional fee per state. Be aware of separate e-filing fees for state returns with the desktop version.
How to get expert help if I use TurboTax Business?
For TurboTax Self-Employed (online), you can upgrade to TurboTax Live Assisted or Full Service. For TurboTax Business (desktop), direct "Live" assistance integrated into the desktop software is less common, and you might need to explore separate TurboTax Live Full Service options for business returns, which involve an expert doing your taxes for you.
How to import my business data into TurboTax?
TurboTax generally allows you to import data from QuickBooks and Quicken, and sometimes from other financial institutions or prior-year TurboTax returns, to streamline the process.
How to know if I qualify for a free TurboTax option for my business?
Generally, free TurboTax options are for very simple personal tax returns (W-2 income, standard deduction). Business income, especially from Schedule C or any corporate/partnership forms, will not qualify for free filing through TurboTax's free editions.
How to upgrade from TurboTax Self-Employed to TurboTax Business if my structure changes?
If your business structure changes from a sole proprietorship to a multi-member LLC, partnership, or corporation, you will need to switch from TurboTax Self-Employed (online) to the TurboTax Business (desktop) software, as they are separate products for different entity types.
How to get audit support with TurboTax Business?
Some TurboTax products offer basic audit support included. For more comprehensive audit defense, you might need to purchase an additional service or utilize the audit support that comes with TurboTax Live options.