A separate bank account for freelancers isn’t always required by law, but you should have one anyway. If you work as a sole proprietor, you can legally run everything through your personal account. However, the IRS recommends a separate account, and it makes taxes, bookkeeping and audits far easier. If you have an LLC, a … Read more
Retirement plans for self-employed workers let you save far more than most employees can, and cut your taxes at the same time. The three main options are the SEP IRA, the Solo 401(k) and the Roth IRA. For most freelancers with no employees, a Solo 401(k) allows the biggest contributions. A SEP IRA is the … Read more
The best business bank accounts for freelancers cost nothing each month, help you set money aside for taxes and keep your business income separate from your personal life. After comparing fees, interest and tax tools on each provider’s website, these are our picks for 2026: Whether you work as a sole proprietor or run an … Read more
When to become an S corp depends on one number: your yearly profit. For most single freelancers in 2026, the S corp election starts to pay off at about $60,000 to $65,000 of profit. Below that, the extra costs usually eat the savings. Above it, the savings grow steadily, from about $1,000 a year at … Read more
Quick answer: Set aside 25–30% of every payment you receive. That covers federal income tax and self-employment tax for most freelancers, plus a typical state income tax. If you earn under about $40,000 in profit, 20% is usually enough. If you earn six figures or live in a high-tax state like California or New York, … Read more