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A blog to help freelancers with taxes - Collective

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California Guides

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

Blog

LLC vs S Corp: The Difference and Tax Benefits in California

If you run a Business-of-One in California, the LLC vs S Corp decision has a layer the federal…

Oct 7, 2026 · 12 min read
Business Formation

How to Start an LLC for all 50 States

Starting an LLC FAQs This comprehensive guide on how to start an LLC in all 50 states provides…

Jan 5, 2023 · 37 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

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
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
Business License

Freelancer’s Guide to Getting a Business License for LLCs & S Corps in California

Even if you managed to survive without a business license when you were a sole proprietor, now that…

May 8, 2019 · 3 min read
Business Formation

The Ultimate Guide to Starting a Business In California

Are you ready to start a business in California? We’ve got some great news for you: there’s never…

Sep 18, 2018 · 10 min read
Business Formation

Guide to Single Member LLC Post Entity Formation Setup in California

After you’ve filed your articles of organization with the California Secretary of State, your LLC will begin its…

Jul 26, 2018 · 7 min read
Business Formation

A Complete Guide to Disregarded Entities in California

Whenever you establish a business, it receives a type of tax treatment automatically from the IRS.  The good news…

Jul 26, 2018 · 7 min read
Business Formation

Sole Proprietorships vs. Single Member LLCs in California

Ready to start your business all on your own? Well, one of the first things that you need…

Jul 26, 2018 · 10 min read
Business License

Business License California: What you Need to Know

If you do business in California, you might need a California business license, permit, or certificate to operate. …

Jul 20, 2018 · 10 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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