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A blog to help freelancers with taxes - Collective

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Business Formation

Business Formation

Ultimate Guide to Forming an S Corp in Illinois

Running your own business is exciting no matter what stage you’re in! Whether you’re just starting out as…

Mar 21, 2022 · 14 min read
Business Formation

Freelancers Guide to LLCs in Texas – What You Need to Know

Are you a freelancer who’s ready to officially form their own business? That’s great! Just keep in mind…

Feb 16, 2022 · 12 min read
Business Formation

Sole Proprietorship In California: A Guide for Solopreneurs

Starting a business comes with responsibilities. And it can seem complicated from the outside. But most states and…

Oct 28, 2021 · 11 min read
Business Formation

How to Start an LLC in Georgia

Your Georgia Business-of-One is flourishing like a peach farm in high summer – and you’re thinking “It may…

Oct 25, 2021 · 9 min read
Business Formation

The Complete Guide to LLC Costs in California

Running a business of any kind comes with expenses. Even a Business-of-One operating out of your own home…

Sep 1, 2021 · 9 min read
Business Formation

LLC California: Starting and Maintaining an LLC in California

So you’re ready to take your business to the next level and form an LLC. California LLCs comes…

Aug 12, 2021 · 24 min read
Business Formation

Corporate Bylaws Template

A good set of rules ensures that businesses run smoothly. When a corporation sets out to define these…

Aug 3, 2020 · 2 min read
Business Formation

S Corp and Self Employment Tax: What you need to know

Are you considering becoming an S Corp for your business? While there are some pretty neat perks, including…

Jul 27, 2020 · 7 min read
Business Formation

Sole Proprietorship vs LLC: What’s the difference?

No matter how much cash you earned this year, being self-employed can be a complicated business. You’re responsible…

Jul 8, 2020 · 8 min read
Business Formation

LLC Taxed as S Corp: The Basics

So, you’ve decided on an LLC for your business. You may not know there’s a whole menu of…

Jul 8, 2020 · 7 min read
Business Formation

LLC vs Corporation: What’s the Difference?

Perhaps this is the year you’ve decided to take your business to the next level. Your colleagues may…

Jul 8, 2020 · 8 min read
Business Formation

S Corp vs. C Corp: What’s the Difference and Which Is Better for Your Business?

The main difference between an S Corp and a C Corp is how the IRS taxes the business.…

Jun 22, 2020 · 12 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.

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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.

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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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