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A blog to help freelancers with taxes - Collective

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Business Setup

Business Setup

Switching to an S Corp Mid-Year: What to Know Before You Do It

The S Corp election is one of the more impactful decisions a solopreneur can make, but most of…

May 13, 2026 · 8 min read
Business Setup

LLC vs. S Corp for Creators: Your Questions Answered

If you’ve spent any time in creator communities, you’ve probably seen the conversation loop: someone asks whether they…

May 6, 2026 · 6 min read
Business Setup

The Best Structure for Solo Consultant Taxes

Running a consulting practice means wearing every hat. Account executive, project manager, delivery lead, and eventually, the person…

May 6, 2026 · 5 min read
Business Setup

Formation Solutions for Solopreneurs: A Comparison Guide

For a solopreneur, forming an LLC is one of the most consequential early decisions you’ll make — not…

Apr 30, 2026 · 5 min read
Blog

Why Athletes Need an LLC: Building a Foundation for Your Career

For a student-athlete or a rising star navigating the world of Name, Image, and Likeness (NIL), you are…

Mar 11, 2026 · 4 min read
Blog

NIL Income Is a Business: Why Athletes Are Switching to an S Corp.

The first time a brand deal hits your account, it’s a flex. You’re still a student, still grinding…

Feb 27, 2026 · 3 min read
Business Setup

How to Look Up Your Business Entity and Check Your Good Standing

Whether you are just starting out or have been in business for years, maintaining your entity’s “Good Standing”…

Feb 9, 2026 · 5 min read
Blog

Forming an S Corp vs. Accepting a W-2 Role: Pros and Cons

If you’re exploring a new role, you may be asked to choose between traditional employment and contract work.…

Jul 22, 2024 · 8 min read
Blog

What is an S Corp and is it right for your business

You may have heard the term S Corporation (or S Corp for short) floating around. And even though…

May 1, 2024 · 8 min read
Blog

What is a Retroactive S Corporation Election?

If you’ve read about S Corps and wish you had turned your business into an S Corp sooner,…

Apr 2, 2024 · 6 min read
Blog

Forming an LLC or S Corp at Year-End: Are the Tax Benefits Still Worth It?

Whether you’re an entrepreneur starting a new business, or ready to take the next steps in legitimizing your…

Dec 11, 2023 · 6 min read
Blog

How to Start an S Corp: What You Need to Know

Starting an S Corp may sound intimidating, but anyone can do it with a computer and the right…

Oct 30, 2023 · 9 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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