Freelancers and Solopreneurs

Tax and bookkeeping for independent business owners

Running your own business is complicated enough. Your finances should not be the part that keeps you up at night.

What We Handle

Everything your business finances need

Most freelancers and solopreneurs do not need a complicated accounting setup. They need someone who will keep their books clean, handle their quarterly taxes, and give them real advice when a financial decision comes up.

  • Monthly bookkeeping and reconciliation
  • Quarterly estimated tax calculations and payment reminders
  • Annual tax return preparation: Schedule C, self-employment tax
  • Deduction review: home office, mileage, equipment, health insurance
  • Entity structure analysis: LLC, S-Corp election timing
  • Retirement account guidance: SEP-IRA, Solo 401k
  • Multi-state tax compliance for remote workers
  • 1099 income reconciliation and contractor reporting
Self-EmployedQuarterly Taxes Schedule C1099Home Office

The tax things freelancers most often miss

  • Quarterly estimated tax payments , missing these triggers penalties even if you pay in full in April
  • Self-employment tax of 15.3% on net income, on top of income tax
  • The home office deduction, which requires a dedicated space used regularly and exclusively for business
  • Health insurance premiums, which are often deductible if you are self-employed
  • Retirement contributions to a SEP-IRA or Solo 401k, which reduce taxable income significantly

When the S-Corp conversation starts

When your net profit consistently exceeds $60,000 to $80,000, an S-Corp election often makes financial sense. We run the actual numbers for your specific income, salary level, and state before recommending anything. Use our S-Corp vs. LLC calculator to get a preliminary estimate.

FAQ

Freelancer Tax Questions

I just started freelancing. What do I need to do first?

Open a separate business bank account, start tracking income and expenses separately, and figure out your quarterly estimated tax obligation. Most first-year freelancers are caught off guard by the self-employment tax bill. Getting ahead of it early makes a significant difference.

Do I need an LLC?

An LLC provides liability protection but does not change your federal tax situation by default. Whether you need one depends on your state, your business type, and your risk tolerance. It is worth discussing, but it is not urgent for most freelancers in the early stages.

What if my income varies a lot month to month?

Quarterly estimated taxes are based on your best estimate of annual income. When income is variable, we often recommend paying based on the prior year safe harbor amount to avoid penalties, then true up in April. This smooths out the uncertainty without over or underpaying significantly.

I work remotely for clients in other states. Do I owe tax in those states?

Generally no , you typically owe income tax in your state of residence. But if you spend significant time working physically in another state, or if your business has nexus there, it gets more complicated. Multi-state situations are common and manageable with the right setup.

Running your own business?

Schedule a free consultation. We will tell you exactly what you need and what you can handle on your own for now.

Schedule a Consultation

Related:

Quarterly Tax Calculator Self-Employed Tax Guide S-Corp vs. LLC Calculator Bookkeeping