H&R Block for Small Business Review: Flexible Tax Services for Many Types of Business Owners

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H&R Block for Small Business

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H&R Block for small business offers a wide range of services for small business owners, including freelancers and contractors. This flexibility means more business owners may be able to benefit from H&R Block’s tax products and services.

Accommodating Tax Solutions for Small Businesses

Managing taxes, bookkeeping and payroll can be daunting. That’s why many entrepreneurs and freelancers turn to companies like H&R Block® for support. Getting help from reputable online tax services or a tax professional can make tedious and often confusing financial tasks easier to manage.

A key benefit of working with H&R Block is the flexibility it offers. You can purchase software to file your own taxes, get in-person or virtual support with taxes and payroll, or opt for many other year-round business financial services. Here are some of the tax, bookkeeping and payroll options available through H&R Block for small businesses.

H&R Block Small Business Services Overview

H&R Block offers services to support small businesses in four main areas:

• Tax return preparation: Business owners can use H&R Block tax preparation software or work with tax professionals to prepare business tax returns. Several tax preparation options are available, with varying prices and features.
• Bookkeeping: You can elect this standalone service to help your small business stay on top of tax obligations throughout the year.
• Payroll services: This is also a standalone service that can help business owners manage payroll and stay compliant and organized for tax time.
• Business formation services: H&R Block can help you select the right business structure, such as S corporation or limited liability company, to set up your venture for success and help you save on taxes.

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Tax Preparation Services

H&R Block

As a small business owner, there are two ways H&R Block can help prepare your business tax return. You can use the company’s software to prepare your tax return (desktop and online versions are available). You can also work with a tax professional to prepare your paperwork for the IRS.

File Online

Eligible small business owners (e.g., freelancers, contractors and other self-employed individuals) can also prepare their business tax returns online with H&R Block. The cost for this service depends on whether you want access to a tax expert via chat or whether you select the do-it-yourself option.

• Deluxe: This is a good option for those who have multiple income streams and are looking for some help from a tax expert.
• Premium: This product is designed with investors in mind and also offer guidance for rental property owners
• Self-Employed: Those who own their own business and want to do things like claim small business expenses can benefit from this tier.

An additional fee will also apply for each state tax return you file.

Tax Software

H&R Block’s Premium & Business tax software may be a good fit for small business owners who want a user-friendly option to file tax returns and other tax forms (like W-2s and 1099s) themselves. The software currently starts at $99 to download to your computer. An extended download option (up to two years) is also available for an additional $5.99.

One state is included with the federal price, but itt will cost an additional $19.95 to e-file additional state tax returns. But the software includes up to five federal e-files. So, this H&R Block desktop software could be a money saver for business owners who need to file multiple federal returns.  

If, for some reason, you don’t like the tax software, you can submit a request before you file and receive a full refund of the purchase price. The desktop software also includes free support at no extra charge if you or your business is audited and you need representation.

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Work With a Tax Professional

Some small business owners prefer to work with a tax professional when it comes to filing annual tax returns. If your business is an S Corporation, C Corporation, Partnership, or you are self employed, H&R Block offers three ways to work with a tax professional.

• Meet in person
• Virtual tax preparation
• Drop off files at an office

Tax preparation costs for the three options above start at $203. Unless you are dropping off files, you will need to schedule an appointment in advance. 

You also have the option to add Business Tax Audit Support protection to your tax return for $75. If you add this coverage and the IRS decides to audit your S Corporation, C Corporation or Partnership tax return, H&R Block tax professionals will research, review and respond on your behalf.

Bookkeeping Services

Bookkeeping services, like those from Block Advisors by H&R Block, can help small business owners manage business cash flow (both revenue and expenses), forecast business financials, stay on top of tax obligations, and more. According to H&R Block, its full-service bookkeeping fees could cost half as much as professional accounting services elsewhere. But it’s always wise to do your own research when it comes to price comparisons.

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Pricing

The cost of small business bookkeeping services with Block Advisors by H&R Block varies based on the types of services you choose:

• Self-service, $39 per month: Basic income and expense management you do yourself.
• Full-service, $175 per month: Get a dedicated accountant, yearly books review and more.
• Premium: $299 per month: Everything in Full-Service plus more tracking and inventory tools, estimates, charts and more.

Both the full-service and premium bookkeeping options offer on-demand access to expert advice from a dedicated account manager. The full-service option also features built-in quarterly support, monthly account reconciliation, financial statement creation, real-time transaction categorization and the preparation of your company books for tax time. 

Block Advisors by H&R Block offers a free 30-minute consultation to discuss the differences between the company’s two bookkeeping options. You can use the free consultation to see if either is right for your business.

Payroll Services

As a small business owner, your tax responsibilities to the state and federal government are more than a once-a-year occurrence. Depending on your business structure and whether you have employees (including yourself), you may have to file tax reports and pay tax withholdings on a quarterly and monthly basis—including payroll tax filings. (Even freelancers have to pay taxes.)

Block Advisors by H&R Block offers back-office support for payroll services that can help free up time for small business owners and make sure they remain compliant. The service is available to both self-employed individuals and small businesses with multiple employees.

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Pricing

As with Block Advisors by H&R Block’s other services, the cost of payroll services varies based on your business’ needs.

• Basic, $59 per month: Dedicated accountant, standard reporting and good for self-employed folks.
• Plus, $79 per month + $10 per employee: Offers year-end W-2s and 1099s, provides detailed reports, makes paying contracts easier.
• Premium, $140 per month + $10 per employee: Provides benefits of Plus, along with workers' comp and retirement benefits services.

A free consultation is available. You can set up an appointment to talk to a specialist and find out if the service is a good fit for your business. Just keep in mind that specialists are sales representatives. So it’s wise to do your own research before making a final decision.

Business Formation Services

H&R Block now also offers business formation services to help small businesses pick the right business structure for their needs. Common business structures include limited liability company, S corporation, C corporation and nonprofit. Each has its own pros and cons, as well as tax implications. H&R Block can guide you toward the best choice for your specific business scenario.

Pricing

Business formation through Block Advisors starts at $149. This cost includes state formation too, and you'll get an employer identification number through the process, which is helpful at tax time or for other business identification purposes, like applying for credit. It's worth noting that you may be charged separate fees by your state, as well.

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Is H&R Block for Small Business Right for Your Tax Needs?

H&R Block for small business offers a wide range of services for small business owners, including freelancers and contractors. This flexibility means more business owners may be able to benefit from H&R Block’s tax products and services.

Nonetheless, it’s always wise to shop around and compare multiple options before you make your final decision. With fee-based tax preparation services in particular, you may want to consider the average cost of getting your taxes done and see how H&R Block’s fees compare.