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A blog to help freelancers with taxes - Collective

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Blog

Sole Proprietorship vs S Corp: Which Is Right for You?

A sole proprietorship is the simplest way to be self-employed: no formal setup, and all of your business…

Oct 15, 2026 · 9 min read
Blog

How S Corp Owners Navigate Mortgage Approval

One of the most persistent anxieties in self-employment is the mortgage question. Will lenders take me seriously? Will…

Apr 8, 2026 · 4 min read
Blog

NIL Income Is a Business: Why Athletes Are Switching to an S Corp.

The first time a brand deal hits your account, it’s a flex. You’re still a student, still grinding…

Feb 27, 2026 · 3 min read
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Freelancers Guide to LLCs and Taxes in California

Ah, taxes. No one can avoid them, including your LLC. So, once you’ve formed your LLC, you need…

Apr 15, 2024 · 10 min read
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Freelancers Guide to Filing an LLC in California – A Simple Step-by-Step Guide

Are you the type of person who takes the DIY approach to things in life? Then you might…

Apr 15, 2024 · 8 min read
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Freelancer’s Guide to S Corp Tax Treatment in California

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

Mar 21, 2024 · 11 min read
Small Business Hacks

How to improve your payments workflow

As a creator, doing the work is often the easy part. Getting paid? Well, that’s an entirely different…

Sep 29, 2021 · 4 min read
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How Women of Color Can Build Generational Wealth through Entrepreneurship

Generational wealth is a hot topic these days. From investing in real estate, the stock market and cryptocurrency,…

Apr 16, 2021 · 5 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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