Investing early on into getting LLC tax filing software is one of the surest ways for users to:
- Save money
- Reduce human error
- Streamline the tax preparation process
LLC users with a simple tax situation can take advantage of tax filing software that allows them to automate how they track income and expenses while also providing built-in checks and any technical support when they encounter obstacles or glitches. Intuitive software that is able to guide filers through deductions will protect users from non-compliance and fines and/or major penalty fees from the Internal Revenue Service.
Advanced Micro Solutions’ 1099-etc E-Filer software is the most affordable solution on the market and is highly customizable.
Users can choose between our E-File Direct (add-on module) and E-File Services options. The E-Filer acts as an extension of our base W-2/1099 Forms Filer program. Whether you purchase only the E-Filer or use it as part of a full-accounting suite of tools, users will have access to our live experts for any support that is needed.
Why is LLC Tax Filing Software A Good Idea?
Getting the best tax filing program for your LLC will look different for each user. Getting yourself new or first-time tax software is particularly worthwhile when:
- Your taxes are simple
- Saving money is a necessity
- You need better year-round financial organization
- Too much time is being wasted
- You make too many errors
- There are concerns about maintaining compliance
- You want more peace of mind
Simple Taxes – Single-member LLCs that are taxed as sole proprietors frequently have more straightforward finances than other companies. Getting an intuitive system will help you to run the necessary calculations without creating extra work or confusion for you.
Saving Money – Getting LLC tax filing software may end up being less expensive than if you choose to hire a tax professional. You need to see what sort of money you bring in each year and whether a tax preparer fee is worth it. Getting the most affordable product on the market, like our 1099-etc E-Filer, may save you money that you can then spend for other necessities.
Better Organization – Get an integrated tax filing system that allows you to send tax forms and documents directly to agencies from one unified system. An integrated system is useful during tax season for:
- Categorizing your documents and any transactions
- Staying prepared in the event of an audit
More Efficient – Automated LLC tax filing software should calculate and guide all of its users step-by-step through the filing process. Improving your company’s efficiency when it is time to handle any tax preparation and electronic filing is an essential way to make sure that all of the relevant deadlines are met.
Fewer Errors – Performing automatic calculations with LLC tax software helps to reduce the likelihood of making human errors from manual data entries.
There is a less than 1% error rate for e-filed returns compared to 21% for paper returns.
Software providers cannot guarantee that their program will eliminate all errors, but introducing built-in checks and live software support can drastically reduce the otherwise costly penalties.
Maintaining Compliance – Keeping your LLC tax filing software up-to-date is the best way to ensure complete compliance with the changing laws and regulations. Getting a fully integrated system that includes regularly updated state and federal tax tables can help users prevent any major compliance issues due to outdated liabilities or forms.
Less Stress – Navigating the tax season is stressful enough without adding more unnecessary work into the process. Speak with a provider before you make any purchase about whether their program offers:
- Built-in error checks
- Access to tax experts
- Audit support
Knowing that your tax filing questions will be answered by a live expert at the company and not by someone in a random call center should inspire confidence in your LLC tax filing software.
The Best Tax Filing Software Features For LLCs
Every tax software user needs certain fundamental features for when they invest in a new or first-time program. Core features that LLC tax software users should look for include:
- Pricing Transparency
- Expert Tax Assistance
- Comprehensive Security
- Federal and State Filing
The pricing structure that works for you will depend on how your company is taxed. Reviewing your options and choosing a solution that meets your needs without exceeding your budget, or straining it, is essential.
A positive, user-friendly experience will also make a world of difference for users. There is not a one-size-fits-all approach to getting LLC tax filing software. Utilizing intuitive software that helps users navigate federal and state filings should provide them with all of the essential filing dates and deadlines so that they stay compliant.
We pride ourselves at AMS on our transparent and affordable pricing, as well as knowing what small businesses need most. As a small business, ourselves, we understand that security and support go hand-in-hand to establish trust in a product’s capability in storing sensitive data.
Best Practices for LLC Tax Filing
Software users with an LLC learn quickly that the LLC tax filing process is dependant upon your tax classification and whether it is a:
- Sole proprietorship
- Partnership
- S corporation
- C corporation
The best practices for when you get new LLC tax filing software include:
Step 1: Choose the Right Tax Classification
It is one thing to know that your tax obligations and filing forms will differ based on your LLC’s tax treatment. It is another thing entirely to ensure that you have the correct default option or appropriately elect to be taxed as an S or C corporation. Figuring out your classification early allows you to:
- Know which forms are essential
- Correctly file forms the first time
- Avoid surprises when tax season rolls around
Step 2: Maintain Detailed Records
Keeping your records organized enables any company to have a smooth tax filing process while maximizing their deductions. Make sure when using your LLC tax filing software to:
- Keep your business and personal funds separate
- Track all of your income and expenses
- Organize your receipts
Getting a system that integrates tax filing and accounting is beneficial for categorizing all of your revenue and deductible business expenses. Staying on top of your receipts is also easier with a unified software system that can store digital or physical copies of essential documentation. Get started eliminating the risk of losing receipts or invoices in your disorganized filing cabinets.
Step 3: Know and Meet Your Deadlines
Missing an IRS deadline can result in costly fees and penalties that disrupt the operations of any business, but especially a smaller one on a tight budget. Using LLC tax filing software can help speed up the process when it comes to estimated tax payments and the annual filing deadlines.
Make sure to mark down the annual filing deadline dates:
- March 15: Partnerships (multi-member LLCs)
- March 15: S corporations
- April 15: Sole Proprietorships (single-member LLCs)
- April 15 (or the 15th day of the fourth month after the fiscal year ends): C corporations
When Should LLCs Hire An Accountant?
Hiring an accountant for your LLC may be necessary, or simply more practical, if:
- Your finances have become more complex
- The company’s growth is causing financial challenges
- Tax planning with an expert will save you significant money
Growing revenue and expenses or higher tax burdens are not always manageable with LLC tax filing software. It may simply be that you need to look for a different program, but it is also easy for people to get a system that is not right for them just because other people recommend it. It might also be best to stick with a tax expert if you:
- Have a multi-member LLC
- Have begun hiring employees and need payroll support
- Recently changed your LLC’s tax classification
- Operate your business in multiple regions or states
Many people and businesses will have opinions on whether a tax filing system or hiring a tax expert is best. Make sure that you do what feels right for you before paying for LLC tax filing software.
Is AMS’ E-Filer Right For Your LLC?
Picking either our E-File Direct or E-File Services option requires users to weigh the different features and determine which ones are the most important to them. The solution that is most cost-effective and comprehensive is the one that you should explore with the help of our free 1099-etc Demo software.
E-File Direct
- Flat fee
- Unlimited number of form filings
- Users can verify, view, and print files
E-File Services
- Volume pricing (fee per form)
- Forms are e-filed through a third-party vendor
- Different service levels available
One of the great features of our demo is that users can enter their real information. The demo will then carry that data over to the LLC tax filing software once you purchase the program. A group of five other optional add-on modules are available for purchase with the base program and the E-Filer. These modules include:
- AMS Payroll
- Software Generated Forms
- Forms Filer Plus
- 1042-S Filer
- Affordable Care Act Filer