Running a small business is a rewarding journey, but it comes with responsibilities—like managing taxes. If you work with freelancers or contractors, filing 1099 forms is a must. Doing it manually can feel overwhelming, but the right software turns it into a breeze.
In this guide, we’ll explore the best 1099 software for small business owners. Whether you’re a solo entrepreneur or leading a small team, this article will help you find a tool that saves time, reduces errors, and keeps your taxes on track.
Why Small Businesses Need 1099 Software
Picture this: tax season is here, and you’re digging through receipts and emails to figure out what you paid your contractors. It’s stressful, and one small slip-up could lead to IRS trouble.
That’s where 1099 software steps in. It automates the process—filling out forms, sending them to contractors, and even submitting them to the IRS electronically. For small business owners, this means less worry and more time to focus on what matters: growing your business.
The best 1099 software for small business does more than save time. It ensures you follow tax rules, cuts down on mistakes, and often connects with tools you already use, like QuickBooks. With e-filing becoming standard, these solutions help you meet deadlines without the hassle.
Top Picks For The Best 1099 Software
After digging into what small businesses need—affordability, simplicity, and dependability—here are my top recommendations for 1099 software. These stand out for their features and value.
1. Tax1099.com – The All-in-One Choice
Tax1099.com is a go-to for small businesses because it’s straightforward and loaded with options. You can pull data from tools like QuickBooks or Xero, complete forms quickly, and e-file with the IRS in no time. It even sends 1099s to your contractors automatically, saving you the follow-up.
- Why I Like It: Affordable pricing (starts at $2.90 per form), secure system, and great support.
- Best For: Businesses wanting a reliable, no-stress option.
2. Track1099 – Ideal for Solo Owners
If you’re a freelancer or one-person shop, Track1099 is perfect. It’s user-friendly, offers e-filing or mailing, and has a clear dashboard to keep everything organized. You can test it for free before deciding.
- Why I Like It: Free trial, simple design, and works with tools like FreshBooks.
- Best For: Solo entrepreneurs who need something light and effective.
3. QuickBooks Online with 1099 Prep – Perfect for QuickBooks Fans
Already using QuickBooks? Their 1099 prep feature is a lifesaver. It grabs data from your records, creates 1099-NEC forms, and lets you e-file right from the platform. No extra software to learn—it’s all built in.
- Why I Like It: Smooth integration, trusted name, and no added cost for subscribers.
- Best For: Small businesses tied to QuickBooks.
4. eFile4Biz – Budget-Friendly and Simple
eFile4Biz keeps it basic and affordable. Enter your contractor details, and it takes care of filing with the IRS and mailing copies to your workers. Pricing starts at $1.95 per form, making it one of the cheapest options.
- Why I Like It: Low price and focus on small business essentials.
- Best For: Owners watching their budget.
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5. Yearli – Great for Expanding Businesses
Yearli offers more power for businesses that are growing. It handles various 1099 types (like 1099-MISC and 1099-NEC), supports bulk filing, and gives detailed reports. It’s still easy enough for non-experts to use.
- Why I Like It: Scales with your business and provides useful tracking.
- Best For: Companies with multiple contractors or bigger needs.
What to Look for in 1099 Software
Not sure which tool fits you? Here’s what to check when choosing the best 1099 software for small business:
- Ease of Use: You shouldn’t need a manual to figure it out. Pick something with a clear layout.
- Cost: Some charge per form, others have flat fees. Choose what matches your wallet.
- Integration: If you use QuickBooks or Xero, go for software that syncs with them.
- E-Filing: The IRS loves electronic filing, so make sure it’s an option.
- Support: Solid customer service can rescue you if something goes wrong.
These points help you find a tool that works with your business, not against it.
How to Use 1099 Software (Step-by-Step)
Let’s take Tax1099.com as an example. Here’s how it works in easy steps:
- Sign Up: Set up an account in a minute or two.
- Add Contractor Details: Type in names, addresses, and payments, or import them from your accounting tool.
- Check Forms: The software fills out 1099s for you. Review them to be sure.
- E-File with IRS: Click submit, and it’s sent electronically.
- Send to Contractors: Email or mail copies with one button.
Done! What once took hours now takes minutes. Tools like Track1099 or QuickBooks follow a similar flow—quick and painless.
Why Going Digital Makes Sense
Paper filing is becoming a thing of the past. The IRS is pushing e-filing more every year, especially for businesses with several 1099s. The best 1099 software for small business makes this shift simple.
Plus, with remote work on the rise, your contractors might be anywhere. Digital tools let you handle it all from your desk—or your couch—keeping your business flexible and ready for anything.
My Personal Experience
I’ve been in your shoes, running a small business and dreading tax season. The first time I tried 1099 software, it was a game-changer. No more late nights with spreadsheets or panic over deadlines.
If you’re still doing this by hand, I promise—switching to software is a decision you won’t regret. Pick one from this list, and you’ll see what I mean.
FAQs About the Best 1099 Software for Small Business
Q: What’s the best 1099 software for small business on a tight budget?
A: eFile4Biz is a solid choice—it’s just $1.95 per form and covers the basics without extras.
Q: Do I have to e-file my 1099s?
A: If you have 10 or more forms, the IRS requires e-filing. Software makes it simple, so you’re good either way.
Q: Is there free 1099 software out there?
A: Some, like Track1099, offer free trials, but fully free tools are rare and basic. Paid options are worth it for peace of mind.
Q: How do I know if my 1099 software is safe?
A: Check for encryption (like SSL) and user reviews. Trusted options like Tax1099.com and QuickBooks keep your data secure.
Q: What if I miss the 1099 deadline?
A: You might face IRS fines—$60 to $310 per form, depending on how late you are. Good software helps you avoid this.
Final Words!
Finding the best 1099 software for small business doesn’t have to be complicated. Whether you choose Tax1099.com for its all-in-one features, QuickBooks for its integration, or eFile4Biz for its low cost, you’re making a smart move toward easier tax filing.
These tools save you time, reduce stress, and keep you compliant—all while letting you focus on running your business.
Ready to simplify tax season? Try one of these options and see how much easier it can be. You’ve got everything you need to succeed!
