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A blog to help freelancers with taxes - Collective

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Small Business Hacks

Blog

How to Take Parental Leave When You’re Self-Employed

Welcoming a new baby can be both exciting and stressful. On top of caring for your newborn, you…

Nov 6, 2023 · 5 min read
Blog

The 6 Lead Generation Mistakes to Avoid In Your Solo Consulting Business

This blog is written by guest author Melisa Liberman. Melisa has been an independent for the past 10…

Oct 4, 2022 · 10 min read
Blog

How To Establish An Effective Lead Generation Routine As An Independent Consultant – A Case Study

It’s common for independent consultants to miss an important step when designing their lead generation process. This blog…

Jun 8, 2022 · 9 min read
Blog

Tips for Creatives to Overcome Isolation and Loneliness

Being a Business-of-One has plenty of perks (hello having full control over when you work and where you…

Dec 8, 2021 · 4 min read
Blog

How to Turn a Referral Program Into a Main Source of Income

When I discovered Collective almost three years ago, I had little idea of what an incredible impact it…

Nov 10, 2021 · 5 min read
Small Business Hacks

How to improve your payments workflow

As a creator, doing the work is often the easy part. Getting paid? Well, that’s an entirely different…

Sep 29, 2021 · 4 min read
Small Business Hacks

Want a sustainable business? Try diversifying your income

I’m sure you’ve heard that the average millionaire has 7 streams of income. I know, not EVERYONE dreams…

Sep 9, 2021 · 5 min read
Blog

7 Tips for Successfully Hiring Your First Freelancer

Learning how to find and hire the right help to scale my business has been one of the…

Aug 27, 2021 · 9 min read
Small Business Hacks

The Self-Employed Guide to Health Insurance

When you’re self-employed, you don’t have a human resources department to pick your insurance plan. As the boss,…

Aug 13, 2021 · 8 min read
Blog

5 Tips on How to Scale a Business from a Successful Freelancer

In the early stages of my business, my main goal was to generate enough revenue to provide for…

Jun 30, 2021 · 9 min read
Blog

Four Queer Entrepreneurs Share their Advice for New LGBT+ Businesses

In the early days of my life as a queer entrepreneur, I agonized about how out I should…

Jun 23, 2021 · 4 min read
Blog

5 Ways to Build a More Queer and Trans Inclusive Business

For many LGBTQIA+ folks, Pride month is a time to celebrate our identities, honoring those who paved the…

Jun 23, 2021 · 4 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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