Which TurboTax Does a Self-Employed Small Business Owner Need?
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If you run a sole proprietorship or a single-member LLC, your business income flows onto your personal return through Schedule C. You report your revenue, subtract your expenses, and the profit gets taxed alongside any other income you have. You also owe self-employment tax on that profit. Compared with a casual freelancer, a small business owner often has more moving parts: inventory, equipment, employees or contractors, vehicles, and a home office.
The complexity creeps in with things like depreciating equipment, handling a vehicle you use partly for business, paying subcontractors who need their own 1099s, and tracking inventory if you sell products. A multi-member LLC, S-corp, or partnership is a whole different animal and files its own entity return, which is a separate product.
TurboTax Premium (Online)
For a sole proprietor or single-member LLC, Premium handles Schedule C, self-employment tax, asset depreciation, and the full range of business deductions in an online format you can use from anywhere. It guides you through your expenses, vehicles, and home office step by step. If you'd rather work in installed software, Home and Business Desktop covers the same ground.
Alternatives to consider
Depreciation and big purchases
When you buy equipment, vehicles, or other long-lived assets, you usually deduct the cost over time through depreciation, though provisions like Section 179 and bonus depreciation may let you deduct more up front. Premium and Home and Business walk you through these choices and report them on Form 4562. Getting this right matters because it affects both this year's deduction and future years too.
When you need TurboTax Business instead
If your business is structured as an S-corporation, a partnership, or a multi-member LLC, the business itself files a separate return, a Form 1120-S or Form 1065, and issues K-1s to its owners. That's handled by TurboTax Business (Desktop), which is different from the products that prepare your personal return. You'd file the entity return first, then use the K-1 on your personal return.
Frequently asked questions
I have a single-member LLC. Do I need TurboTax Business?＋
Usually not. A single-member LLC is typically treated as a sole proprietorship for taxes and files Schedule C on your personal return, so Premium or Home and Business Desktop is the right fit.
Online or desktop, which is better for me?＋
Online Premium is convenient and you can get to it anywhere. Home and Business Desktop offers extra guidance and lets you prepare multiple returns from one purchase. Choose based on your preference and how many returns you file.
I paid a contractor over the threshold. What do I do?＋
You generally need to issue them a 1099-NEC. TurboTax's self-employment products and related tools can help you prepare those forms in addition to your own return.
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