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LLC Guides

State-by-state guides for setting up and maintaining your business.
Browse our popular guides or search for your state below.

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
Accounting

When to Hire a CPA

Navigating the Financial Landscape: When Should You Hire a CPA? In today’s dynamic and ever-evolving financial landscape, the…

Aug 29, 2023 · 5 min read
Business Formation

What is an LLC?

An LLC, or Limited Liability Company, is a legal business structure that combines the limited liability protection of…

Aug 17, 2023 · 10 min read
Business Formation

What is Accounting?

Accounting Definition What is accounting? Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions and…

Jul 14, 2023 · 8 min read
Business Formation

What is an EIN Number?

EIN (Employer Identification Number) Definition What is an employer identification number? An Employer Identification Number (EIN) is a…

Jul 13, 2023 · 7 min read
Business Formation

How to Start an LLC in Maryland: A Step-by-Step Guide

Starting an LLC in Maryland FAQs Why Start an LLC in Maryland? If you’re reading this, you’re probably…

Apr 4, 2023 · 8 min read
Business Formation

How to Start an LLC in Colorado: A Step-by-Step Guide

Starting an LLC in Colorado FAQs Why Start an LLC in Colorado? If you’re in Colorado, or planning…

Mar 31, 2023 · 7 min read
Business Formation

How to Start an LLC in Washington State: A Step-by-Step Guide

Starting an LLC in Washington State FAQs Why Start an LLC in Washington State? If you’re in Washington…

Mar 7, 2023 · 8 min read
Business Formation

How to Start an LLC in Oregon: A Step-by-Step Guide

Starting an LLC in Oregon FAQs Why Start an LLC in Oregon? If you’re in Oregon, or planning…

Mar 3, 2023 · 8 min read
Business Formation

How to Start an LLC in New Jersey: A Step-by-Step Guide

Starting an LLC in New Jersey FAQs Why Start an LLC in New Jersey? If you’re in New…

Feb 28, 2023 · 8 min read
Business Formation

How to Start an LLC in Texas: A Step-by-Step Guide

Starting an LLC in Texas FAQs Why Start an LLC in Texas? If you’re in Texas, or planning…

Feb 21, 2023 · 7 min read
Business Formation

How to Start an LLC in Florida: A Step-by-Step Guide

Starting an LLC in Florida FAQs Why Start an LLC in Florida? If you’re in Florida, or planning…

Feb 13, 2023 · 7 min read
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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.

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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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