The Multi-Business Tax: Why QuickBooks Charges Per Company (And Alternatives)

If you own multiple businesses, you already know the frustration.

You set up your second LLC, rental property, or side hustle. You go to add it to your accounting software. And then you see it: another subscription fee.

Most cloud accounting software charges per company. Two businesses? Double the cost. Three? Triple. Four? You're now paying more for accounting software than some people pay for their car.

This article breaks down exactly how much multi-entity owners are paying, why cloud vendors use this pricing model, and what alternatives exist for entrepreneurs who refuse to be taxed for being ambitious.

The Real Cost of Multi-Entity Accounting

Let's do the math with actual 2025/2026 pricing from major accounting software providers:

And these prices increase every year. QuickBooks has raised prices by an average of 10-15% annually over the past five years. Your multi-entity costs today will be even higher next year.

Who Gets Hit Hardest?

The per-company pricing model disproportionately affects certain groups:

Why Do Cloud Vendors Charge Per Company?

The official justification is usually some variation of "each company is a separate database" or "server costs." But let's be honest about what's really happening:

1. It's the Most Profitable Model

Cloud vendors discovered that ambitious entrepreneurs — the exact people who build multiple businesses — are willing to pay more. Per-company pricing extracts maximum revenue from their most successful customers.

2. It Creates Predictable Revenue

Every new company you create is another recurring subscription. Investors love this. Your growth directly increases their revenue without them having to acquire a new customer.

3. The Switching Cost Is High

Once you have 5 companies in QuickBooks, migrating to something else feels overwhelming. They're betting you'll just keep paying rather than deal with the hassle of moving.

The Hidden Multiplier Effects

Per-company pricing gets worse when you factor in add-ons:

• Payroll: $50-150/month per company with employees
• Payment processing: Often tied to each company subscription
• Additional users: $10-40/month per user, per company
• Advanced features: Premium tier pricing, per company

A real estate investor with 6 properties, each needing basic payroll for a property manager, could easily hit $500-800/month in accounting software costs alone.

What Are The Alternatives?

Not all accounting software uses per-company pricing. Here's what else is available:

Option 1: Desktop Software with Unlimited Companies

Traditional desktop accounting software typically allows unlimited company files with a single license. You install the software once and create as many companies as you need.

Examples:

• QuickBooks Desktop (while it's still available)
• Sage 50
• BizBooks Pro

Pros: One price for unlimited companies, data stays local, no recurring per-company fees

Cons: Need to install on computer, no automatic cloud sync (though most offer remote access options)

Option 2: Self-Hosted Solutions

Open-source accounting software that you host yourself:

Examples:

• Akaunting (free, open source)
• GnuCash (free, open source)
• ERPNext (free, open source)

Pros: Free or very low cost, complete control, unlimited everything

Cons: Technical setup required, you're responsible for backups/security, limited support

Option 3: Flat-Rate Cloud Services

Some newer cloud services are experimenting with flat-rate pricing:

Pros: Predictable costs, cloud convenience

Cons: Still relatively rare, may have other limitations

What to Look for in Multi-Entity Software

If you're evaluating accounting software for multiple businesses, ask these questions:

1. What's the cost for my 2nd, 3rd, 4th company? Get specific numbers, not just "contact sales."
2. Are there per-user fees that multiply across companies? This hidden cost adds up fast.
3. Can I switch between companies easily? You'll be doing this constantly.
4. Are reports consolidated or separate? Some businesses need cross-company reporting.
5. What happens if I add more companies later? Will my costs increase proportionally?
6. Is there a price lock or guarantee? Per-company costs that increase annually compound painfully.

The 5-Year Math for Multi-Entity Owners

Let's project the real cost difference over 5 years for someone with 4 companies, assuming 10% annual price increases for cloud software:

That's not a typo. A multi-entity owner could save over $26,000 in five years by choosing flat-rate software over per-company cloud pricing.

But What About Cloud Features?

The main argument for cloud accounting software is convenience: access anywhere, automatic updates, bank feeds. Fair points. But consider:

• Remote access: Desktop software can be accessed remotely via browser or VPN. It's not as seamless as pure cloud, but it works.
• Bank feeds: Most modern desktop software supports bank imports (CSV, OFX, QFX files). Some even have direct bank connections.
• Automatic updates: Desktop software updates too, just not every week. Is constant change really a feature?
• Collaboration: For most multi-entity owners (where you're the only user across all companies), this is irrelevant.

The question isn't whether cloud has advantages. It's whether those advantages are worth $5,000+ per year more for a multi-entity setup.

When Per-Company Pricing Makes Sense

To be fair, there are scenarios where per-company cloud pricing isn't unreasonable:

• Completely separate businesses with different teams: If each company has its own accountant and doesn't share any systems, separate subscriptions might make sense.
• You genuinely need advanced cloud features for each entity: Real-time collaboration with multiple users per company, complex integrations, etc.
• You're scaling so fast that software cost is irrelevant: If each company generates millions in revenue, $99/month is noise.

But for the majority of multi-entity owners — real estate investors, serial entrepreneurs, side hustlers, accountants — per-company pricing is just a tax on ambition.

Making the Switch

If you're currently paying per-company and want to switch to a flat-rate solution, here's the process:

1. Export your data from each company — Most software lets you export chart of accounts, customers, vendors, and transactions to CSV or IIF files.
2. Choose your target software — Look for unlimited company support and verify the import capabilities.
3. Start with your smallest/simplest company — Get comfortable with the new software before migrating complex entities.
4. Run parallel for one month — Keep your old software active while you verify the new setup works.
5. Cancel old subscriptions — Once confident, cancel each company subscription.

For detailed export instructions, see our guide to exporting QuickBooks data.

Key Takeaways

• Per-company pricing multiplies fast: 4 companies on QuickBooks Online Plus = $4,752/year.
• The cost compounds over time: Annual price increases make multi-entity costs grow exponentially.
• Alternatives exist: Desktop software and some cloud services offer flat-rate pricing for unlimited companies.
• 5-year savings can exceed $25,000: For multi-entity owners, software choice has real financial impact.
• Switching is possible: Export your data, set up new software, run parallel for safety, then cancel.

You built multiple businesses because you're ambitious. Your accounting software shouldn't penalize you for it.

Related Articles

• What QuickBooks Really Costs Over 5 Years
• The Hidden Costs of Cloud Accounting Software
• 7 Best QuickBooks Alternatives in 2025
• How to Export Your Data from QuickBooks
• QuickBooks Desktop Discontinued: What You Need to Know

Note: Prices cited are based on publicly available information as of January 2026 and may vary. Check vendor websites for current pricing. This article is for informational purposes and does not constitute financial advice.