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Taxation

Guides

The Freelance Designer’s Tax Survival Guide: Keep More of What You Earn

Freelance design taxes come down to a few habits: know what you owe, set money aside as you…

Oct 26, 2026 · 12 min read
Guides

1099 Taxes: A Complete Guide for Freelancers & Contractors

When people search for “1099 taxes,” they usually mean the taxes they owe on freelance or contract income.…

Oct 16, 2026 · 10 min read
Guides

S Corp Taxes: The Complete Guide for Small Business Owners

Understanding S Corp taxes can feel confusing because there isn’t one S Corp tax. Instead, as an owner,…

Oct 8, 2026 · 11 min read
Blog

How to Run Payroll When You’re an S Corp Owner-Employee and Hiring Contractors

Running a business-of-one often involves wearing many hats, but once you elect S Corp status, you officially become…

Feb 12, 2026 · 5 min read
Guides

California – Annual S Corporation Franchise Fee Payment Instructions

Most states follow the federal IRS rules and don’t require S Corps to pay income tax, but California…

Dec 10, 2024 · 5 min read
Guides

1099-NEC Guide for LLC Owners

1099-NEC is a tax form used when paying contractors and vendors. NEC is short for ‘nonemployee compensation.’ If…

Dec 26, 2023 · 7 min read
Guides

Guide to Tax Deductions for Real Estate Agents

“In this world, nothing is certain except death and taxes.”  – Benjamin Franklin Did you know that there…

May 1, 2023 · 7 min read
Guides

S Corp Tax Treatment in California – Guide for Freelancers

The Golden State isn’t as “golden” as it used to be, at least for those who are self-employed. Freelancers…

Jun 1, 2019 · 11 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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