There are a variety of important aspects to be aware of when preparing tax returns. Most of them are related to accounting methods used to report business income and expenses. Depending on whether an click entity is an accrual or cash entity the accounting method could be one of the two. A lot of small business owners must also make a quarterly estimated tax payments. These tax payments can be done using the Electronic Federal Tax Payment System or by submitting 1040 ES forms with a tax payment.

Intuit offers several levels of service to help small-sized businesses with their tax returns. Those looking for an easier approach to tax preparation can opt for the online TurboTax Self-Employed option or the more complex TurboTax Business application. This option pairs business owners with a tax expert who prepares their tax return, from start to finish.

TurboTax Business can also help with the preparation of 1099-MISC, W-2 and 1040-DIV for contractors and employees. It also calculates the estimated tax obligations that are generally required by the IRS if you expect to owe more than $1000 in taxes.

However it can be expensive. The cost can quickly mount up as the federal filing costing $200 and every state filing $55. There are many advantages, such as unlimited live assistance from an expert and a guarantee of 100 accuracy of calculations. However, these additional features can be difficult for small companies to afford. There are alternatives to TurboTax that are less expensive.