Once the holidays subside, there's another big day you'll want to circle on your calendar: tax day. If this will be your first time filing your taxes as a business owner — whether it's your full-time job or a side hustle — there are a few things you'll want to do in order to prepare.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
The Deluxe plan comes with priority support and live chat, while the paid Pro Support tier adds access to a tax pro, phone support, live screenshare and assistance with federal and state returns
Guarantees 100% accuracy and maximum refund
TaxAct Xpert Assist is available starting at $45
100% accuracy and maximum refund
Terms apply
Know your deadline
Your tax filing deadline can depend on your business structure and how its taxed. Here are the deadlines to be aware of:
- Sole proprietorships and single-member LLCs: Apr. 15, 2026
- C corporations: Apr. 15, 2026
- S corporations: Mar. 16, 2026
- Partnerships: Mar. 16, 2026
Start combing through your bank statements for business expenses
The first year of business can feel like a whirlwind and you may have found yourself paying for some business expenses on a personal credit card or not really keeping track of how much your business is spending or how much you pay yourself.
Now's the time to start getting financially organized if you haven't already. It'll make it so much easier for you to file taxes in 2026 and you won't need to scramble to go through bank statements line by line.
Software like QuickBooks Accounting and FreshBooks help you track your business expenses and income. Both platforms also let you create invoices for clients and customers, and they link to payment platforms like Stripe. You can also manually enter or import previous expenses so you can still use these platforms to organize business activity you've had throughout the year.
QuickBooks
Cost
Costs may vary depending on the plan selected but take advantage of a limited time offer - 50% off for 3 months
Standout features
Tracks your business expenses as they happen, as well as your income. Users can use app to do invoicing, accept payments, manage their cash flow, maximize tax deductions, track travel miles, run reports, send estimates, manage bills and 1099 contractors, plus pay employees
Categorizes your expenses
Yes
Links to accounts
Yes, bank and credit cards, plus third-party apps like PayPal and Square
Availability
Accessible from any web browser and also offered in both the App Store (for iOS) and on Google Play (for Android)
Security features
Verisign scanning, password-protected login, firewall protected servers and the same encryption technology (128 bit SSL) used by the world's top banks. QuickBooks also offers multiple permission levels that you can set for additional users' access
Terms apply.
Pros
- Offers a 30-day free trial
- Syncs to your bank accounts, credit cards and third-party apps like PayPal and Square
- Offers real-time dashboards so you can stay updated on all financial transactions related to your business
- The most basic "Simple Start" plan tracks income, sales and expenses, organizes receipts, creates invoices, helps you prepare your taxes, categorizes your business and personal trips, offers a QuickBooks Cash account, runs reports like P&Ls and balance sheets and includes 1 user
- "Essentials" plan, in addition to the above, helps you pay your bills, clock employee time and billable hours and includes up to 3 users
- "Plus" plan, in addition to the above, lets you oversees projects, track inventory and includes up to 5 users
- "Advanced" plan, in addition to the above, provides business analytics and insights, speeds up transactions, gives users access to VIP service QuickBooks Priority Circle that includes a dedicated account team and free online QuickBooks training includes up to 25 users. QuickBooks offers a fourth "Self-Employed" plan for freelancers
- Security features include Verisign scanning, encryption technology (128 bit SSL) used by the world's top banks and customized access for other users
Cons
- Some user reviews complain of glitches in app and a not so user-friendly interface
FreshBooks
Cost
Cost varies depending on the plan. Click "Learn More" for details
Standout features
Extremely easy to get started; Lite plan offers a lot of features; it's easy to upload receipts (including mileage) and create invoices. App offers time tracing. Very mobile friendly interface.
Categorizes your expenses
Yes
Links to accounts
Yes, credit cards and bank accounts
Availability
Available for Web, iOS and Google Play
Security features
FreshBooks utilizes 256-bit SSL encryption, secure firewalls, multi-factor authentication and regular vulnerability scanning and AI-driven fraud detection.
Pros
- Easy-to-use interface
- All plans include time tracking and unlimited invoices and expenses
- Clients can view and pay invoices via portal on mobile app
Cons
- Cost for additional team members and FreshBooks integrations can make it expensive
- Lower tiers lack double-entry accounting reports and have limits on billable clients
Even if you plan on working with a tax professional next year, getting organized now will make tax filing so much easier.
Recover receipts
Business owners get to claim tax deductions that W-2 employees don't — like the cost of transportation, part of your rent and more. But you need to keep your receipts for the deductions you want to claim and for the expenses you want to write off. If you're ever audited by the IRS, these receipts are proof of your expenses to make sure you're claiming the appropriate deductions and write-offs.
Set aside money for your tax bill
The last thing you want is to get hit with a tax bill next year...and realize you have no money to pay it. General guidance suggests putting aside 25% to 30% of your business' net income to cover taxes. If you already opened a business checking account, you'll likely also have an option to open a business savings account there, too. The savings account can be a good place to move money to for your tax bill.
Mercury offers a business checking and savings account combo that can help you organize your cash immediately. You can also create and send invoices directly through your Mercury account.
Mercury
Special offer
None
Monthly maintenance fee
$0
Minimum deposit to open
$0
Minimum balance
$0
Annual Percentage Yield (APY)
Up to 4.43% APY for users of Mercury Treasury, the investment advising arm of Mercury
Free ATM network
Mercury doesn't charge ATM fees, however, the ATM operator may charge a fee
ATM fee reimbursement
Yes, see here for more details
Small business perks
Offers startup guides, users who sign up for the IO Credit Card can earn 1.5% cash back
Overdraft fee
$0
Mobile check deposit
Yes
Terms apply.
Pros
- No monthly fees, balance minimums or overdraft fees
- Offers a debit card
- Mobile check deposit available
- IO credit card offers 1.5% cash back on purchases
- Users can send domestic and international wire transfers in over 30 different currencies
- USD international wires are free to send
- Integrates with several bookkeeping and accounting tools
Cons
- No cash deposits allowed
- No APY earned for checking account balances
The Bluevine Business Checking account actually makes it even easier to divvy up your cash for these kinds of expenses. Within your account, you can create "buckets" for saving up for different things (including taxes). Your money is all in the same account, but you can still separate it based on what you need it for.
Bluevine Business Checking
Special offer
A *$500 bonus by applying for a Bluevine Business Checking account using the referral code CNBC500 before 1/31/2027. Minimum qualifications must be fulfilled in order to be eligible for this bonus.
Monthly maintenance fee
Standard $0; Bluevine Plus $30 (with options to waive); Premier $95 (with options to waive)
Minimum opening deposit
$0
Minimum balance
$0
Annual Percentage Yield (APY)
Standard 1.3% APY on balances up to $250,000 if you meet a monthly activity goal*; Bluevine Plus 1.75% on balances up to $250,000; Premier 3.0% APY on balances up to $3 million
Free ATM network
No fees at over 38,000 ATM locations nationwide
ATM fee reimbursement
No
Small business perks
Two free checkbooks
Overdraft fee
$0
Mobile check deposit
Yes
Terms apply. Bluevine accounts are FDIC insured up to $3 million per depositor through Coastal Community Bank, Member FDIC
Pros
- High APY available for eligible accounts
- No monthly fees or charges for ACH payments, overdrafts or incoming wire transfers
- Deposits are FDIC-insured up to $3 million
- Access to 37,000+ free ATMs in the MoneyPass network
Cons
- No physical branches
- Fee for cash deposits, which are handled through a third-party network
- No refunds for out-of-network ATM transactions
- Outgoing domestic wires cost $15.
*The requirements to earn the $500 bonus:
Customers must apply for a Bluevine Business Checking account by using the referral code above before 1/31/2027. After opening the account, customers must add funds within 30 days, then meet at least one of the following eligibility requirements every 30 days for the next 90 days from account funding:
- Deposit at least $5,000 from eligible merchant services to your Bluevine account
- Make at least $5,000 of outbound payroll payments from your Bluevine account using eligible payroll providers
- Spend at least $2,000 with your Bluevine Business Debit Mastercard® and/or Bluevine Business Cashback Mastercard®
*The requirements to earn interest are either:
- Debit Card Spend: Spend $500 per month with Bluevine Business Debit Mastercard® issued by Coastal Community Bank pursuant to a license from Mastercard inc, which can be used everywhere Mastercard® is accepted.
- Incoming Payments: Receive $2,500 per month in customer payments into Bluevine Business Checking account via ACH, wire transfer, mobile check deposit, or directly from merchant payment processing provider
Make an appointment with a tax professional
For some business owners, it may make sense to work with a tax professional — especially if this is their first year in business or if they want to claim some more complex deductions. It can be a good idea to start making appointments with professionals to go over your tax and business situation and start figuring out what they may need from you (before things get super busy).
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
The Deluxe plan comes with priority support and live chat, while the paid Pro Support tier adds access to a tax pro, phone support, live screenshare and assistance with federal and state returns
Guarantees 100% accuracy and maximum refund
TaxAct Xpert Assist is available starting at $45
100% accuracy and maximum refund
Terms apply
FAQs
How do I pay myself from an LLC?
With an LLC, you can take what's known as an owner's draw where you just transfer money from your business account to your personal account. If you chose to have your LLC taxed as a corporation, you can set up a payroll system and pay yourself a salary.
What are common tax mistakes for the self-employed?
If you're self-employed, some common tax pitfalls may include underpaying on your taxes, not setting aside enough money to pay your tax bill, not knowing your tax deadline (and filing late as a result) and trying to handle a complex situation without the help of a professional.
What happens if an LLC makes no money?
If your LLC doesn't make any money, you should still report any operating costs and losses.
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