FAQ

The short answer is, yes. But don’t feel bad. 90% of solopreneurs overpay on taxes because our financial system was built to help corporations, not individuals. The good news is you no longer have to navigate this maze alone. We’ve developed the technology and playbook to make taxes easy and turn them from a burden into an opportunity.

Yes! But that's just the cherry on top. Our customers also average $18k in retirement contributions annually and the compounding effect of that is the key to building long-term wealth. Over the course of five years, our typical customer will save $50k in taxes and contribute $90k in strategic retirement investment accounts that are growing, compounding, and working for you. But you don’t have to take our word for it, see what our Tax Happy customers have to say.

If your full-time job pays you via 1099 and you're earning more than $100k gross annually, you employ less than five people, don't pay sales tax or carry inventory, and want to ensure you never overpay on taxes again, then Formations is the solution you need!

Formations helps self-employed professionals across all industries plan, manage, and pay their taxes. Not sure if we’ve got you covered? Just give us a call and we’ll figure it out together! And if you’re a list type of person, our solution was designed to support independent businesses of one such as Real Estate Agents, Freelancers, Consultants, Coaches, Developers, Designers, Video Editors, Music Supervisors, Copywriters, Producers, Architects, Lawyers, Insurance Agents, Traveling Nurses, Therapists, Psychiatrists, Trainers, Chiropractors, Hair Stylists, Tattoo Artists, and so many more.

CPAs are great—we’ve got a few of them on our team! But most CPAs don’t have the expertise—or the time—to provide the insights and guidance you require as a self-employed pro. Think of your CPA as a generalist, kind of like visiting a practitioner at urgent care that keeps you waiting and doesn't know your unique history or niche challenges. Formations, on the other hand, is like an on-call, award-winning surgeon with the best team and tech on the planet. Who would you want by your side during a major operation?

We get that. With Formations, you get the best of both worlds! Our technology was created by tax and accounting experts to make things as easy as possible for you. And guess what? They still run the company. In fact, when you join Formations, you get a dedicated team that learns your business. When you have a question that can’t be answered by our knowledge base, your team is just a click or call away.

One is a legal entity (LLC) and one is a Federal filing election with the IRS (S-Corp). You can’t have your business file to be an S-Corp without a legal entity in place (such as LLC). Simply put, S-Corp filing allows you to leverage similar benefits that corporations do while remaining independent.

While we might not be able to help you personally, we can be a great resource for educating your 1099 employees. We partner with organizations throughout the U.S. to deliver critical, financial education to teams at scale, while also supporting your team's individual financial needs. It’s a win-win-win! You help your team keep more of their money, achieve financial peace of mind, and spend less time dealing with their books so they can focus more on growing their book of business.

Tax strategy and management is our core service, but we also help our customers with things like retirement, audit protection, emergency funds, cash-flow management, and more.

Due to state or city regulations in the tax code, Formations is currently unable to serve clients in Connecticut, New Jersey, Tennessee, Vermont, Washington D.C., West Virginia, Wisconsin, Texas, and New York City. However, we are researching and vetting new areas continually, and encourage you to join our waitlist if your place of business is listed above.

At the moment, there are only a few types of businesses that we’re still developing the playbook for. Those include businesses that carry inventory, pay/charge sales tax, have more than five employees, and do business in multiple states.