A note on honesty
Collective wins on the S-corp formation + payroll + bookkeeping bundle, full stop. We don't offer S-corp formation today, we don't run payroll, and we don't file 1120-S returns. If you've decided an S-corp is right for you and you want one provider to handle everything, Collective is built for that.
We win on price for sole-prop bookkeeping (rung 1), where Collective doesn't really compete — they require you to be S-corp eligible to onboard.
This is the most-honest comparison page on this site. Read on for where each one fits.
What Collective actually is
Collective (founded 2020, San Francisco) is a "back office for the self-employed." Specifically: solopreneurs whose income justifies an S-corp election (typically $60K+ net profit; see our break-even analysis).
Collective handles:
- S-corp formation in your state
- Form 2553 election
- Monthly bookkeeping
- Owner-employee payroll
- 1120-S corporate tax return
- Personal 1040 prep
- Solo 401(k) setup and administration
- Quarterly tax payments
The pitch is "pay us $349+/mo and we'll handle the entire S-corp lifecycle." It's true and it's well-executed.
What ExpenseGhost is
ExpenseGhost is bookkeeping software for sole props and freelancers on Schedule C. We handle the books and tax estimate. We don't form entities, we don't run payroll, and we don't file returns.
Our market is the rung below Collective's — solo operators who haven't elected S-corp (and may never need to).
Where Collective wins (legitimately)
- The S-corp bundle — formation + payroll + 1120-S + personal 1040 in one provider. We don't do any of this.
- Solo 401(k) admin — Collective sets up and administers. ExpenseGhost doesn't touch retirement accounts.
- Quarterly estimated tax payments handled — Collective remits for you. We compute and remind; you remit.
- One-stop convenience — fewer logins, one bill, one team.
- For S-corp owners who don't want to think about it — the bundle is genuinely turnkey.
Where ExpenseGhost wins
- Price for sole-prop / Schedule C work — $192/yr vs $4,188+/yr. If you're not yet S-corp-eligible, Collective doesn't really serve you anyway, but for those in the "should I?" zone, ExpenseGhost is the bridge.
- Flexibility — pick any CPA, any payroll provider, any state of formation. With Collective you're inside one ecosystem.
- Pre-S-corp clarity — our break-even analysis helps you decide if an S-corp is worth it before locking in. Collective's incentive is to onboard you to the S-corp bundle.
- Live tax estimate dashboard — see projected federal + state tax in real time as you classify. Collective focuses on the year-end packet.
- Mobile-first receipt OCR — fast, included.
When to use Collective
- You've already decided on S-corp election and want it done by a provider
- Your net profit is consistently $80K+ (well above the S-corp break-even)
- You don't want to coordinate a CPA, a payroll provider, and a bookkeeping tool yourself
- You want a single 401(k) plan administered with your S-corp
When to use ExpenseGhost
- You're a sole prop or freelancer on Schedule C (no entity, or LLC taxed as sole prop)
- Your net profit is under ~$60K (below S-corp break-even)
- You want to keep operating costs low while you grow
- You already have a CPA you like and just need clean books to hand them
- You're considering S-corp but want to model the math first before committing
What we don't do
- S-corp formation or Form 2553 election
- W-2 payroll for owner-employees (use Gusto, Justworks, Roll, etc.)
- 1120-S corporate tax return
- 401(k) administration
- Health insurance enrollment for S-corp shareholders
What Collective doesn't do
- Sole-prop / Schedule C bookkeeping at sole-prop prices
- Help you decide if S-corp is right (the answer is built into their pitch)
- Schedule C export for non-S-corp taxpayers
How to decide
Path 1: You're under $60K net profit. Use ExpenseGhost. Don't elect S-corp yet — the friction outweighs the benefit. Re-evaluate annually.
Path 2: You're $60K–$100K and undecided. Use ExpenseGhost while you decide. Read our S-corp break-even analysis and reasonable comp guide. When you're ready, either DIY the S-corp setup with a CPA or move to Collective.
Path 3: You're $100K+ and want a turnkey S-corp bundle. Collective is exactly built for you. The price is real but the time savings are real too.
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.