Thinking about how much TurboTax charges for an LLC can feel like navigating a maze, right? With different types of LLCs and various service levels, the costs aren't always straightforward. But don't worry, you've come to the right place! This comprehensive guide will break down everything you need to know about TurboTax fees for your Limited Liability Company, helping you make an informed decision for your business.
Let's dive in and demystify TurboTax pricing for LLCs!
Understanding Your LLC's Tax Classification: The Crucial First Step
Before we even look at TurboTax's pricing tiers, the most important thing you need to understand is how your LLC is taxed. This isn't always as simple as "I have an LLC, so I file LLC taxes." The IRS allows LLCs a great deal of flexibility in how they choose to be taxed, and this directly impacts which TurboTax product you'll need and, consequently, how much you'll pay.
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| How Much Does Turbotax Charge For Llc |
Sub-heading: Single-Member LLCs (Treated as Sole Proprietorships)
If your LLC has only one owner and you haven't elected for it to be taxed as a corporation (S-Corp or C-Corp), then by default, the IRS treats your LLC as a disregarded entity. This means:
Your business income and expenses are reported on your personal tax return.
You'll typically file Schedule C (Form 1040), Profit or Loss from Business, along with your personal Form 1040.
This is the most common scenario for small, single-owner businesses.
Sub-heading: Multi-Member LLCs (Treated as Partnerships)
If your LLC has two or more owners and hasn't elected corporate taxation, the IRS treats it as a partnership. This means:
The LLC itself files an informational return, Form 1065, U.S. Return of Partnership Income.
Each partner then receives a Schedule K-1 (Form 1065), which reports their share of the partnership's income, losses, deductions, and credits.
Partners report this income on their personal tax returns (Form 1040).
Sub-heading: LLCs Electing S-Corp or C-Corp Taxation
While less common for simple small businesses, an LLC can elect to be taxed as an S-Corporation or a C-Corporation.
S-Corp LLCs file Form 1120-S, U.S. Income Tax Return for an S Corporation, and distribute K-1s to owners.
C-Corp LLCs file Form 1120, U.S. Corporation Income Tax Return.
Knowing your LLC's tax classification is paramount as it dictates which TurboTax product is even capable of handling your filing.
Step 1: Identify Your TurboTax Product for LLC Filing
Alright, now that you're clear on how your LLC is taxed, let's look at which TurboTax product you'll likely need. This is where the pricing journey truly begins!
Tip: Read carefully — skimming skips meaning.
Sub-heading: For Single-Member LLCs (Treated as Sole Proprietorships)
If your single-member LLC is filing as a sole proprietorship, you'll generally be directed to TurboTax's personal tax products that support Schedule C.
TurboTax Self-Employed (Online): This is the most recommended online version for single-member LLCs. It's designed specifically for freelancers, independent contractors, and small business owners who report their income and expenses on Schedule C. It helps you maximize business deductions and can import data from QuickBooks Self-Employed. As of May 2025, the federal filing cost is around $129.
TurboTax Premium (Online): Note: TurboTax Premium has largely replaced what was previously "Self-Employed" and "Premier" online. This online version covers everything in Deluxe plus investments, rental property income, and, critically for single-member LLCs, Schedule C for business income and expenses. If you also have investments or rental properties, this might be the most suitable online option. Pricing for Premium online is typically around $149 for federal filing.
TurboTax Home & Business (Desktop): If you prefer desktop software, this version is designed for self-employed individuals and small business owners, including single-member LLCs filing Schedule C. It offers robust features and the ability to prepare multiple returns. The cost for the desktop software is generally around $120 (one-time purchase).
Sub-heading: For Multi-Member LLCs (Treated as Partnerships) or LLCs Taxed as S-Corps/C-Corps
This is a critical distinction. If your LLC is a multi-member LLC (taxed as a partnership) or has elected S-Corp or C-Corp status, you cannot use the personal TurboTax Online products (like Self-Employed or Premium) or even the Home & Business desktop version for your business return.
TurboTax Business (Desktop Software): This is the only TurboTax product that can handle partnership (Form 1065), S-Corp (Form 1120-S), or C-Corp (Form 1120) tax returns. It's important to note that this is a desktop-only software, meaning you'll download and install it on a Windows PC (there's no Mac version for TurboTax Business). The cost for TurboTax Business desktop software is typically around $180 (one-time purchase). It usually includes 5 federal e-files.
Step 2: Factor in State Filings: An Almost Universal Additional Cost
Don't forget your state taxes! This is one of the most common "hidden" costs that surprises users. Almost without exception, state tax filings are an additional charge with TurboTax, regardless of which version you use.
Online Versions (Self-Employed/Premium): Expect to pay approximately $59 - $64 per state for online e-filing.
Desktop Versions (Home & Business/Business): State downloads for desktop versions are typically around $60 per state. A key difference here is that for TurboTax Business (desktop), e-filing your state return often costs an additional $25 per state, otherwise you'll need to print and mail it.
If your LLC operates in multiple states, these costs can add up quickly.
Step 3: Consider Upgrade Options and "Live" Services
TurboTax offers various levels of support and features that can significantly increase your final bill. These are often presented as upgrades as you go through the filing process.
Sub-heading: Live Assisted / Expert Review
What it is: This option provides you with access to a tax expert who can answer your questions as you prepare your return, and often includes a final review of your return before you file.
Cost impact: Adding Live Assisted to your Self-Employed or Premium online package can increase your cost significantly. For a single-member LLC using the Self-Employed online product, an upgrade to Live Assisted can add anywhere from $129 to $260 to the federal filing cost, pushing the total to $258 or more (federal only). For business returns (multi-member LLCs, S-Corps, C-Corps), TurboTax Live Assisted Business can cost around $219 for federal, plus state fees.
Sub-heading: Full Service
QuickTip: Reading carefully once is better than rushing twice.
What it is: With Full Service, you simply upload your tax documents, and a dedicated tax expert prepares and files your return for you from start to finish.
Cost impact: This is the most expensive option. For a single-member LLC, Full Service can push your total federal cost to $389 or more. For business returns (multi-member LLCs, S-Corps, C-Corps), TurboTax Live Full Service Business can cost upwards of $739 for federal, plus state fees.
Sub-heading: Audit Defense / Protection
What it is: This is an add-on service that provides support in case you are audited by the IRS or state tax authorities.
Cost impact: While some higher-tier packages or "Live" services might include audit support, it's often an additional fee if purchased separately. Pricing can vary but typically ranges from $40-$60.
Sub-heading: Other Potential Add-ons
Bank Products / Refund Processing Service: If you opt to have your TurboTax fees deducted from your tax refund, a separate processing fee (often around $40) is usually charged by the bank facilitating this.
Additional Forms/Schedules: While the main products generally cover necessary forms, some niche or very complex situations might lead to suggestions for additional forms or services, though this is less common for standard LLC filings within the appropriate product.
Step 4: Keep an Eye Out for Discounts and Promotions
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TurboTax, like many software providers, frequently offers discounts, especially early in the tax season.
Early Bird Discounts: Prices tend to be lower at the beginning of the tax filing season and often increase as the April deadline approaches. Filing early can save you money!
Bundle Deals: Sometimes you'll find bundles that include tax software with other Intuit products like QuickBooks Self-Employed, which can be beneficial if you need both.
Promotional Codes: Keep an eye out for coupon codes from partner websites or through email promotions.
These discounts can make a noticeable difference in your final cost, so it's always worth checking for them.
Step 5: Understand the Total Cost Breakdown – An Example
Let's illustrate with a couple of common scenarios to give you a clearer picture of potential costs:
Scenario 1: Single-Member LLC (Sole Proprietorship) in One State
TurboTax Self-Employed (Online) Federal: ~$129
State Filing (e.g., California): ~$59
Estimated Total (DIY Online): $188
If you add Live Assisted: ~$129 (federal) + ~$59 (state) + ~$129 (Live Assisted federal) + ~$59 (Live Assisted state, if applicable) = $376 (This can vary based on exact Live pricing which often bundles federal and state assistance).
Scenario 2: Multi-Member LLC (Partnership) in One State
TurboTax Business (Desktop) Federal Software: ~$180 (includes federal e-file)
State Download for Desktop: ~$60
State E-file Fee (for desktop): ~$25
Estimated Total (DIY Desktop): $265
As you can see, the costs can range significantly depending on your LLC structure and the level of service you desire.
QuickTip: Use posts like this as quick references.
Key Takeaways and Important Considerations:
LLC Tax Classification is King: Your LLC's tax status (sole proprietorship, partnership, S-Corp, C-Corp) fundamentally determines which TurboTax product you need. Don't guess!
Desktop vs. Online: For multi-member LLCs, TurboTax Business (desktop) is your only option within the TurboTax ecosystem for the business return itself. Single-member LLCs have both online and desktop choices.
State Fees are Almost Always Extra: Budget for these, as they're a consistent additional cost.
"Live" Support is a Significant Upsell: While helpful, services like Live Assisted or Full Service will substantially increase your overall expense.
Prices are Dynamic: TurboTax's pricing can change, often increasing as tax season progresses. The figures provided here are estimates as of May 2025. Always check the official TurboTax website for the most current pricing before you commit.
Complexity Matters: The more complex your business finances, the more likely you might lean towards higher-tier TurboTax products or even consider a professional tax preparer (CPA).
By carefully considering these factors and following the steps outlined, you can accurately estimate how much TurboTax will charge to file your LLC's taxes and avoid any unpleasant surprises.
10 Related FAQ Questions
How to choose the right TurboTax product for my single-member LLC?
Choose TurboTax Self-Employed (Online) or TurboTax Premium (Online) if you want to file online, as both handle Schedule C. For desktop software, opt for TurboTax Home & Business.
How to file multi-member LLC taxes with TurboTax?
You must use TurboTax Business (Desktop Software) to file Form 1065 for a multi-member LLC. There is no online TurboTax option for this entity type.
How to avoid paying extra for state filing with TurboTax?
Generally, you cannot avoid state filing fees with TurboTax. They are almost always an additional charge, ranging from $59-$64 per state for online versions and $60 per state for desktop versions (plus a potential $25 e-file fee for TurboTax Business desktop).
How to get expert help when filing my LLC taxes with TurboTax?
You can opt for TurboTax Live Assisted or TurboTax Live Full Service. Live Assisted offers expert guidance as you file, while Full Service means an expert prepares and files your entire return for you. Both come at a significant additional cost.
QuickTip: Don’t ignore the small print.
How to reduce the cost of TurboTax for my LLC?
File early in the tax season to take advantage of potential early bird discounts, and stick to the DIY online or desktop versions if you're comfortable preparing your own return, as "Live" services are the biggest cost drivers.
How to know if my LLC is taxed as a sole proprietorship or partnership?
If your LLC has only one owner and you haven't made a specific election with the IRS, it's typically taxed as a sole proprietorship. If it has two or more owners and no election, it's usually taxed as a partnership.
How to file an LLC taxed as an S-Corp or C-Corp with TurboTax?
Similar to multi-member LLCs, if your LLC has elected S-Corp or C-Corp taxation, you will need the TurboTax Business (Desktop Software) to file the appropriate corporate tax forms (Form 1120-S or Form 1120).
How to get audit protection for my LLC through TurboTax?
Some higher-tier TurboTax Live products may include audit support. Otherwise, you can often purchase an additional "Audit Defense" service for a fee.
How to import business data into TurboTax for my LLC?
TurboTax Self-Employed and Business versions often have features to import data from QuickBooks or bank accounts, which can streamline the tax preparation process.
How to determine if I need a CPA instead of TurboTax for my LLC?
If your LLC's finances are highly complex, you have multiple income streams, operate in many states, or require extensive tax planning and strategic advice beyond just filing, a Certified Public Accountant (CPA) might be a more suitable and ultimately cost-effective option.
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