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A blog to help freelancers with taxes - Collective

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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
Blog

Self-Employed Retirement Plans: Which is the Best for You?

When you work for yourself, no one is automatically setting money aside for your retirement. That responsibility is…

Aug 10, 2020 · 7 min read
Blog

Unemployment Insurance Options for Freelancers

In the past, when a self-employed contractor lost a client or gig, they were out of luck when…

May 1, 2020 · 5 min read
Blog

4 Hacks for Freelancing in a COVID-19 World

The world as we know it has changed. Since the coronavirus hit the U.S. early this year, businesses…

Apr 27, 2020 · 6 min read
Blog

6 Best Practices for Working from Home

Whether you’ve been moonlighting as a creative professional a few days a week or you’re brand-new to the…

Apr 16, 2020 · 5 min read
Blog

8 Grant Options for Freelancers During the Coronavirus Outbreak

Since the coronavirus outbreak shook (and closed down) the world last month, many freelancers have struggled to maintain…

Apr 15, 2020 · 5 min read
Blog

8 Loans Small Business Owners Should Know About During the Coronavirus Outbreak

We get it. The news regarding how the recent coronavirus pandemic is affecting small businesses is alarming. With…

Apr 1, 2020 · 7 min read
Blog

Everything Freelancers Need to Know about AB5

The first time I heard of AB5, I thought it was a fresh new droid from Star Wars.…

Mar 4, 2020 · 12 min read
Blog

The Complete Guide to AB5 for Small Businesses

If you’re a California based business who hires contractors then AB5 probably has you shook. It could mean…

Mar 4, 2020 · 13 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.

I agree to Collective Terms of Service & Privacy Policy. Additionally, by providing phone number to continue, I agree to receive calls, incl. autodialed or prerecorded sales calls, from Collective.

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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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