Company expands service offerings to help the growing independent workforce build smarter business foundations

1-800Accountant announced the launch of a new business setup service built for 1099 workers, freelancers, and gig economy professionals. The product addresses a persistent gap in tax and financial services for independent workers, many of whom carry larger tax burdens due to operating without the correct business structures.

A Structural Tax Problem Hiding in Plain Sight

Of the roughly 16 million self-employed Americans, the Bureau of Labor Statistics reports that 9.4 million operate as unincorporated businesses. This gap highlights a widespread issue: millions of independent workers are still operating without a formal business setup or LLC structure, leaving them exposed to higher tax burdens. Without the right structure in place, many end up paying self-employment tax on their full net income, often resulting in thousands of dollars in avoidable annual tax liability.

"The numbers made it clear that we needed to build something specifically for this group," said Gary Milkwick, Chief of Finance at 1-800Accountant. "Many of our new clients are bringing in $150,000 to $200,000 in first-year revenue, but are not set up in a way that reflects that income level. The difference in tax obligation between a sole proprietorship and a properly elected S corp at those earnings is nearly $10,000 a year. That is a problem our business setup service solves."

1-800Accountant's business setup service connects 1099 workers directly with an established accounting firm who factors in their income, industry, and filing history when making their registration and tax recommendations. The service then handles the rest of the process, including state registration, business tax return preparation and filing, obtaining an EIN, handling annual filings, bookkeeping and coordinating any other initial compliance requirements. As an added layer of support, independent clients also receive access to tax experts to understand their overall tax obligations and impact on their personal tax savings, and ensure their new structure is used effectively from the start.

"We regularly hear from contractors, drivers, content creators, etc. who started making money as a 1099 worker years ago, but either never registered the business or set it up without expert accountant advice. This leads to an improper tax election and an unnecessary overpayment," said Ryan Teeples, Chief of Strategy at 1-800Accountant. "Registering is a small part of the equation. The real value comes from using your 1099 status correctly, and that's where other services fall short. We're building in the tax strategy from the beginning, not as an afterthought."

Built for a Workforce That Is Not Slowing Down

Demand for services tailored to independent contractors has accelerated alongside the broader growth of the gig economy. 1-800Accountant's client data shows that account growth among contractor-adjacent industries accelerated sharply year over year, with Consulting up 17%, Construction growing 10%, and Service-sector clients surging more than 200% compared to 2024. The same data reveals that across the firm's highest-volume industries, including Transportation, Real Estate, and Consulting, more than 90% of clients operate as LLCs, underscoring both the demand for business registration and the opportunity to ensure those structures are paired with the optimal tax strategy from the start.

"This is a solution we've been building toward for a long time," said Mike Savage, Founder and CEO of 1-800Accountant. "The independent workforce is no longer a fringe segment of the economy. These are serious professionals who deserve the right balance of financial guidance and support. This service meets 1099 workers where they are and helps them build something long-term that works in their favor."

The service is available now to new and existing 1-800Accountant clients. Pricing starts at $19 per month (plus any government filing fees) and includes business setup evaluation, preparation and filing of business federal tax returns, state registration, federal registration, simple-to-use AI bookkeeping software, and a consultation with a tax expert for onboarding and explanation of their individual tax situation.

About 1-800Accountant

1-800Accountant is the nation's leading virtual accounting firm for small businesses and independent contractors. With a team of credentialed accountants and tax professionals, 1-800Accountant provides bookkeeping, tax preparation, tax planning, and advisory services to clients across all 50 states. The firm is committed to making professional accounting accessible and affordable for business owners at every stage.

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Many of our new clients are bringing in $150,000 to $200,000 in first-year revenue but aren't set up to reflect that income level. The difference between a sole proprietorship and an S corp can be nearly $10,000 a year.