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A blog to help freelancers with taxes - Collective

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Money Management

Blog

How to Use your Personal Financial Identity to Grow your Business

On your self-employed journey, there may be issues and roadblocks that affect the speed with which you scale…

Feb 2, 2021 · 4 min read
Blog

9 Reflection Questions to Help Your Business Level Up Next Year

As a busy business owner, you’re probably concerned about looking towards the future. After all, you’ve got a…

Dec 8, 2020 · 7 min read
Blog

How the 80/20 Rule Helped me 3x my Revenue in Less than a Year

If you don’t have a finance or accounting background, it may not always be clear why keeping detailed…

Oct 26, 2020 · 5 min read
Blog

How to Create an Authentic Budget for Your Business

When it comes to creating a budget for your business, there’s more than one way to do it…

Sep 7, 2020 · 7 min read
Blog

Create a Better Business Using Values-Based Spending

Whether you’re just starting out or have been freelancing for years, the question of whether you’re purchasing something…

Aug 31, 2020 · 7 min read
Blog

Level Up Your Freelance Finances with These Expert Tips

When you first started your business, you probably put some effort into your finances. Maybe you set up…

May 15, 2019 · 5 min read
Blog

How to Pay Yourself When You’re a Freelancer

Whether you’re first starting out as a freelancer or you’re a self-employed freelancer who’s already making money, it’s…

Jan 29, 2019 · 9 min read
Blog

How Much Should You Pay Yourself? S Corp Salary Guide for Freelancers

Many Business-of-One owners with an LLC elect S Corp tax treatment because of the potential tax savings. But…

Jan 24, 2019 · 14 min read
Blog

How to Open a Business Bank Account for Your New Business

Starting a new business is an exciting time with so much potential in the air. And in the…

Jul 26, 2018 · 8 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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