Identifying the Right TurboTax Version for Your Small Business

⚙️There are significant differences between TurboTax Self-Employed and TurboTax Business in terms of the types of businesses they cater to and the tax forms they support.

💼TurboTax Self-Employed is suitable for sole proprietorships, while TurboTax Business is designed for S-corps, C-corps, and partnerships.

💻TurboTax Business is only available for Windows, and it cannot be used on a Mac. Mac users with S-corps, C-corps, or partnerships will need to explore alternative software or consider hiring a professional.

💰Small business owners who have over $40,000 in profit should consider forming an S-corporation, as it can provide significant tax savings.

📚Navigating the complexities of tax software can be challenging. Seeking guidance from a professional can ensure accurate and optimal tax preparation for your small business.

What is the difference between TurboTax Self-Employed and TurboTax Business?

—TurboTax Self-Employed is designed for sole proprietorships, while TurboTax Business caters to S-corps, C-corps, and partnerships. The software and tax forms supported by each version differ significantly.

Can I use TurboTax Business if I have a Mac?

—No, TurboTax Business is only available for Windows. Mac users with S-corps, C-corps, or partnerships will need to explore other software options or consider working with a tax professional.

Is TurboTax Self-Employed suitable for LLCs?

—Yes, TurboTax Self-Employed is suitable for single-member LLCs and multi-member LLCs that have not elected to be taxed as an S-corporation.

What are the benefits of forming an S-corporation for a small business?

—Forming an S-corporation can provide significant tax savings for small business owners. It allows for the allocation of income and payroll taxes, potentially reducing the amount owed in social security and Medicare taxes.

Should I hire a tax professional instead of using tax software?

—Navigating tax software can be complex, especially for small business owners. Working with a tax professional can ensure accurate and optimized tax preparation, taking advantage of all available deductions and credits.

00:00This video helps viewers choose the appropriate TurboTax version for their small business.

02:26TurboTax Self-Employed is suitable for sole proprietorships, while TurboTax Business is designed for S-corps, C-corps, and partnerships.

04:35TurboTax Business is not available for Mac users, posing limitations for those with S-corps, C-corps, or partnerships.

06:18Small business owners with over $40,000 in profit should consider forming an S-corporation for potential tax savings.

08:00Professional guidance is recommended to navigate the complexities of tax software and ensure accurate tax preparation for small businesses.