Collective makes you elect S-corp before you've earned it
You can't even sign up for Collective as a sole prop. The S-corp election is a prerequisite, not an option. So before you've run the numbers once, you've signed up for payroll runs and a separate 1120-S.
- ExpenseGhost: books for any entity, sole prop to C-corp. $16/mo. No election required.
- Collective: formation, payroll, and bookkeeping in one bundle. $349+/mo. S-corp or nothing.
Year-over-year cost
| ExpenseGhost (Solo) | Collective (entry) | |
|---|---|---|
| Monthly | $16 | $349 |
| Year 1 | $192 | $4,188 |
| Year 5 | $960 | $20,940 |
Run the break-even before you commit
The S-corp election only pays off around $80K net profit. Under that line, what you save on payroll tax doesn't cover what the election costs to run. Collective charges you $349/mo either way.
Past $80K? Build it à la carte for a third the price
Cross $80K and the election makes sense. You still don't need a bundle. Assemble the same stack yourself:
- S-corp formation: $300–$500 once, with any CPA.
- Owner payroll: ~$40/mo with Gusto.
- Bookkeeping: $16/mo with ExpenseGhost.
- 1120-S: $1,200–$1,500/year with any CPA.
Total: ~$1,500/year. Roughly a third of Collective's $4,188.
What $16/mo gets you
- Plaid bank sync, 2 to 100 connections by plan.
- Receipt OCR, auto-matched.
- Schedule C lines mapped to specific IRS boxes.
- Live federal + SE tax estimate.
- Books that keep up if you do elect S-corp later.
- Export drops into any CPA's preferred tool.
ExpenseGhost provides tax estimates and tax-ready exports. We are not a tax preparer and do not file returns. Estimates are informational — verify every number with a licensed tax professional before filing.