Tax season is the absolute worst and it feels like every year gets more challenging. As a solopreneur, I dread filing my taxes and making sure I’m getting the most tax benefits possible. Since we’re in the heart of tax season, I decided to take a look at both Collective and TurboTax to see which accounting service is right for my business-of-one.
If you’re a full-time solopreneur earning over $60,000 per year…Collective
Collective is built to help self-employed entrepreneurs with no employees or sales tax, who make at least $60,000 a year. Collective’s tax experts will help you form an S Corp to maximize your tax savings. On average, Collective members saved $10,000 on their taxes in 2022. TurboTax will do your taxes, but your business formation needs aren’t covered in their standard offering.
If you’re looking for an all-in-one financial solution…Collective
Collective not only sets up your company, but it also does all the backend work: payroll, bookkeeping, compliance, accounting, and quarterly taxes. No more chasing down documents and cleaning up your books at year’s end. With Collective, you know that your taxes are going to be accurate because their team of pros is continually keeping your records in tip-top shape. You also have a team of business advisors to make recommendations that can help you optimize your savings.
If you only need help with your taxes…TurboTax
If you’re only interested in filing your yearly taxes, TurboTax has a lower price at $999 for full-service federal business filing (extra for each state) and $399 for full-service federal individual filing (extra for each state). That’s about $1,400 each year.
Collective on the other hand offers a lot more than just tax filing. You get S Corp formation, compliance, payroll, tax, year-round bookkeeping, and accounting services for just over $3,000 a year.
If you’d prefer the better value option…Collective
First, let’s be clear, this isn’t exactly an apples-to-apples comparison, more like apple pie-to-apples. For the sake of the yearly comparison, we’ll assume you have an S Corp in both scenarios and you’re using TurboTax’s full-service program.
As you can see, the charges from TurboTax for additional services start to quickly add up. You can save big by choosing Collective for your business needs.
My ultimate pick…Collective
As a solopreneur, the choice is pretty clear - Collective’s all-inclusive service saves me money and makes my life easier. While TurboTax is an affordable option compared to a CPA firm, you’re still spending a lot of money throughout the year to take care of everything your business-of-one needs. There’s more to running a business than taxes alone and Collective’s experts make it easy.