Overview
The LLC Membership Tier is designed for business owners who operate as single-member LLCs (Limited Liability Companies). This plan provides everything you need to confidently form, manage and stay up-to-date with tax filings as an LLC.
Our goal is to simplify your back office, so you can focus on growing your business while we handle filings, bookkeeping and tax essentials.
Who It’s For
This plan is ideal for:
- Founders, freelancers and consultants who want to form an LLC or already have one
- Solopreneurs who want to simplify tax filings and bookkeeping with automation and expertly-built workflows
- Self-employed individuals who want year-round support to stay organized and tax-ready
What’s Included
Your membership includes:
- LLC Formation & EIN Application: For new businesses
- Operating Agreement Template: Available upon request; our team will help create one customized to your business if you don’t already have one
- Registered Agent Service: Coverage in one state (additional states available for additional fees)
- Automated Bookkeeping: Transaction import, categorization, and monthly reconciliations
- End-of-Year Book Cleanup: Rebuild your books from the later of January 1 of the current tax year or your LLC formation date . For example, if your LLC was formed in March, your book cleanup will start from March; if it was formed before this year, it will start from January 1 of the year you sign up.
- Integrated Invoicing: Custom-branded invoicing and Stripe payments
- Personal Tax Filing: Preparation and filing of your individual return (Form 1040) with Schedule C. This covers the tax year in which you’re a Collective member. For example, if you join Collective in 2025, we’ll prepare and file your 2025 taxes (due April 2026)
- California SMLLCs: Taxpayers required to file California Form 568 will have it included at no additional cost
- Quarterly Estimated Tax Calculation: Automatic calculations and reminders to stay on track with IRS and state estimated tax deadlines throughout the year
- AI-Powered Support Assistant: On-demand answers to bookkeeping, tax and filing deadline questions
- Access to Collective Community & Self-Employed Resources: Connect with other business owners and access educational resources designed for solopreneurs
What’s Not Included
This plan does not include payroll setup or W-2 salary support and Collective does not support additional W-2 employees at this time.
It also does not include a separate business tax return (Form 1120-S), since single-member LLCs report their business income and expenses directly on their personal tax return (Form 1040 with Schedule C).
As a single-member LLC, you aren’t required to pay yourself through formal payroll — instead, you take owner distributions (transfers from your business bank account to your personal account) as your form of compensation.
Pricing
- LLC Membership Tier is $199 per month, or $169 per month when paid annually ($2,028 upfront)
- A one-time onboarding fee of $199 applies upon joining
- State LLC formation fees are additional and passed through at cost, when applicable
This plan is designed for single-member LLCs that don’t require a separate S Corp tax return or payroll setup.
Frequently Asked Questions
What’s the difference between the LLC and S Corp tiers?
While both memberships include business setup, bookkeeping, invoicing and tax support, the main difference comes down to how you pay and report taxes and the level of service needed to support that structure.
LLC Tier:
This plan is designed for single-member LLCs taxed as sole proprietors. You don’t need payroll to pay yourself a formal salary, and your business activity is reported directly on your personal tax return (Form 1040 with Schedule C). Because there’s no separate business tax return or payroll requirement, this tier offers a simpler setup and streamlined workflows at a lower price point.
S Corp Tier:
This plan supports members who have elected or want to elect S Corp tax status and require additional administrative support. You’re required to pay yourself a reasonable salary through payroll and file a separate business tax return each year. To make that easy, your membership includes the following additional services:
- Payroll platform setup and management
- Ongoing payroll processing
- Quarterly payroll tax filings
- Preparation and filing of the annual S Corp tax return (Form 1120-S)
In short: the LLC membership covers what's needed to manage your books and file your personal taxes as a self-employed individual, while the S Corp membership adds payroll and business tax filings.
Do I need payroll as an LLC?
No. LLC owners don’t run payroll for themselves and don’t receive W-2 wages. Instead, you pay yourself via owner’s distributions — simply transferring funds from your business account to your personal account. You’ll pay both income tax and self-employment tax on your profits, including what you take as distributions, through quarterly estimated payments throughout the year.
How will I pay taxes on my LLC income?
As a single-member LLC, your business is considered a disregarded entity for tax purposes — meaning your LLC doesn’t pay taxes separately from you. Instead, profits “pass through” to your personal tax return. You’ll:
- Report income and expenses on Schedule C (part of your Form 1040)
- Make quarterly estimated tax payments throughout the year to cover income and self-employment taxes
- Receive tax filing and payment guidance directly through your Collective dashboard
Collective's Quarterly Tax Estimate (QTE) tool and recommends your quarterly estimated tax payments, so you’ll always know how much to send, when to pay, and where to submit each payment.
I don’t have a business formed yet - can Collective form my LLC?
Yes. Collective provides tools and support to help you form your LLC and obtain your EIN. We handle the required state and IRS filings using the information you provide. Your membership includes a Registered Agent service covering (1) state to receive official notices on your behalf.
If I already have an LLC, can I join under the LLC Tier?
Yes. If your LLC already exists and you haven’t elected S Corp status, we’ll help you transfer it into the Collective ecosystem and ensure your LLC is in good standing and get your books up-to-date.
What tax filings are included?
-
Included: Personal tax return (Form 1040, one Schedule C)) and one state filing
- More complex returns are subject to additional fees
- Included (CA members only): California Form 568 for state LLC reporting
- Not Included: S Corp (1120-S), partnership (1065), or corporate returns
Do I get bookkeeping and invoicing tools?
Yes. Your plan includes:
- Connection of your business bank and credit card accounts
- Automated bookkeeping (transaction import, categorization, reconciliations)
- Built-in invoicing integrated with Stripe for payments
- Real-time visibility into key financial statements (Profit & Loss, Balance Sheet, Cash Flow Statement and Trial Balance)
What support do I get?
You’ll have access to:
- AI-powered support assistant for instant answers
- A team of LLC and S Corp specialists when you need human help
When does the LLC plan make sense vs. S Corp?
The LLC plan is best for business owners who don’t yet need the added structure or filings that come with an S Corp. If your profits are modest, you earn significant W-2 income elsewhere, or you’re in a state where S Corps are less favorable, staying an LLC often keeps things simpler and more cost-effective.
You may benefit more from the LLC plan if:
- Net profit is under ~$60K–$80K
- You have high W-2 earnings from another job
- You operate in a less S-Corp-favorable state
The LLC tier keeps workflows light – no payroll setup or separate business tax return – while still providing bookkeeping, estimated tax calculations, and personal tax filing support through Collective.
Can I have employees as an LLC?
While an LLC can generally hire employees, Collective does not support additional W-2 employees at this time. Your membership is designed for single-member businesses without staff payroll.
What about independent contractors?
You can work with independent contractors as an LLC and continue paying them however you prefer — Zelle, PayPal, Venmo, check, etc. We simply recommend that all contractor payments come from your business checking account for clean bookkeeping and clear documentation.
If you pay a contractor above certain thresholds, you may be required to file Form 1099-NEC — learn more in our independent contractor compliance and 1099 filing guide.
If I’m already an S Corp with Collective - can I switch to the LLC tier?
If you’re already an S Corp member with Collective, nothing changes about your current membership. The new LLC tier was created to expand Collective’s ability to serve more types of business owners, including those who operate as single-member LLCs and haven’t elected S Corp status.
Once you’ve elected to be taxed as an S Corp, reverting back to single-member LLC (Schedule C) treatment isn’t automatic — and it can get complicated. Revoking an S Corp election requires multiple formal steps and filings, including:
- Submitting a formal revocation of your S Corp election to the IRS
- Making a new election for disregarded (single-member LLC) tax treatment — it doesn’t happen automatically
- Understanding that if no new election is made, your business defaults to C Corp taxation (i.e. a 21% federal corporate tax rate)
- Managing potential mid-year complications, like filing final and partial-year S Corp returns
- Separating bookkeeping and income reporting between your S Corp period and post-revocation LLC activity
In addition, once an S Corp election is revoked, the IRS generally won’t allow you to re-elect S Corp status for five years without special permission. These steps can be time-consuming and create additional filing and bookkeeping complexity. At this time, Collective cannot support the changes required when an S Corp election is revoked.
Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as legal, financial, or tax advice. It is not intended to be a substitute for obtaining legal, accounting, or other financial advice from an appropriate and/or licensed adviser, or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.