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Collective

A blog to help freelancers with taxes - Collective

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Business Setup

Blog

Sole Proprietorship vs S Corp: Which Is Right for You?

A sole proprietorship is the simplest way to be self-employed: no formal setup, and all of your business…

Oct 15, 2026 · 9 min read
Blog

What Is an Artist Corporation? Colorado’s New Business Structure for Artists, Explained

Colorado recently created a new business structure for artists, and the name is already causing confusion. An artist…

Oct 8, 2026 · 12 min read
Blog

LLC vs S Corp in New York State: Which Is Right for You?

If you run a Business-of-One in New York State, the LLC vs S Corp decision includes a state…

Oct 8, 2026 · 12 min read
Blog

LLC vs S Corp in New York City: Which Is Right for Your Business?

If you live or do business in the five boroughs, the LLC vs S Corp decision works differently…

Oct 8, 2026 · 14 min read
Blog

LLC vs S Corp in Georgia: Which Is Right for You?

If you run a Business-of-One in Georgia, the LLC vs S Corp decision starts with federal taxes but…

Oct 8, 2026 · 10 min read
Blog

LLC vs S Corp in Florida: Which Is Right for You?

If you run a Business-of-One in Florida, the LLC vs S Corp decision comes down mostly to federal…

Oct 7, 2026 · 9 min read
Blog

LLC vs S Corp in Texas: Which Is Right for Your Business?

If you run a Business-of-One in Texas, the LLC vs S Corp decision comes down mostly to federal…

Oct 7, 2026 · 9 min read
Blog

LLC vs S Corp: The Difference and Tax Benefits in California

If you run a Business-of-One in California, the LLC vs S Corp decision has a layer the federal…

Oct 7, 2026 · 12 min read
Business Setup

What Is the Best Business Structure for Real Estate Agents in 2026?

You closed a big sale, the commission check hit your account, and then tax season arrived and took…

Sep 2, 2026 · 10 min read
Blog

The Real Cost of an S Corp (And When the Savings Are Worth It)

The S Corp election gets pitched as a tax-savings move. What doesn’t get pitched: what it costs to…

Aug 11, 2026 · 5 min read
Blog

Your LLC Turns One. Here’s What to Do Next.

One year in means something. You have real income, real expenses, and at least one tax season behind…

May 20, 2026 · 6 min read
Blog

You Just Formed Your LLC. Now What?

Forming an LLC is a real milestone. You’ve got a legal business structure, liability protection, and something that…

May 19, 2026 · 6 min read
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First, tell us about your business

Net profit = Total revenue - total expenses

  1. Find total revenue. Add up all money your business earned from sales of goods or services during the year.
  2. Subtract your expenses. Deduct all business costs like supplies, rent, utilities, software, contractor payments, and loan interest.

An estimate is fine, you don't need exact figures.

W2 employees are people on your payroll

You withhold income tax, Social Security, and Medicare from their paychecks, and they get a W-2 form from you at the end of the year.

Don't count yourself (even if you pay yourself a salary) or 1099 contractors and freelancers.

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We are experts in the unique needs and challenges of self-employed people and know that our confidence gives others confidence, too. Reach out to say hello and join our team.

We are experts in the unique needs and challenges of self-employed people and know that our confidence gives others confidence, too. Reach out to say hello and join our team.

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Collective provides a suite of tools, back-office support, and general information. Our services are not intended as tax, legal, or professional advice.

* Savings estimates reflect the average 2023 federal self-employment (SE) tax savings for Collective members with an S Corp tax election, based on business profits that would've otherwise been subject to SE tax. Actual savings will vary based on individual circumstances.

** Based on data sourced from Shopify blog, QBO Essentials, QBO Live, Gusto, Taxfyle, Intuit "Tax Pro" Research, LegalZoom and JustAnswer.com as of August 2025.

† Individual tax return packages are billed as an annual, one-time add-on fee.

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