Formations
Formations is a US SaaS platform that bundles S-Corp formation, bookkeeping, payroll, tax preparation, and benefits management for full-time self-employed professionals, primarily real estate agents, consultants, and freelancers.
- Company typePrivate
- Founded2019
- HeadquartersKirkland, United States
- Headcount51–100
- GTM typeB2C
- OfferingSoftware
What Formations does
Formations Corp is a Kirkland, Washington-based SaaS and professional services company that delivers integrated tax, bookkeeping, payroll, and financial management for full-time self-employed professionals in the United States. The platform combines S-Corp election and entity formation, automated bookkeeping, payroll processing (delivered via an integration with Gusto), quarterly and annual tax preparation, a financial dashboard, and self-employed benefits administration (401(k), HSA, healthcare). The technology stack is a cloud-based web and mobile application layered on top of best-of-breed partners (Gusto for payroll, Xero for accounting), with proprietary components including the S-Corp Savings Calculator, a tax planning engine, and automated expense categorization.
The company monetizes primarily through annual subscription bundles that bundle SaaS access with human tax and bookkeeping services; pricing is tiered by business complexity but not publicly disclosed. Go-to-market is hybrid: a self-serve website with a public savings calculator and 'Help Me Choose' quiz for top-of-funnel conversion, supplemented by free consultation calls with tax experts for sales-assisted closing. The initial customer base was real estate agents and brokers (with named testimonials across Compass, Windermere, RE/MAX, and eXp Realty), and the company has since expanded to serve consultants, freelancers, healthcare practitioners, and other solopreneurs. The company is led by co-founders Shahar Plinner (CEO) and Uri Bar-Joseph (COO), employs 51-100 people, and has raised approximately $11.5 million across an early 2021 round and an $8 million Series A led by Arthur Ventures in April 2022.
Formations firmographics
Firmographics- Name
- Formations
- Legal name
- Formations Corp
- Website
- https://formationscorp.com
- Company type
- Private
- Founded year
- 2019
- Operating status
- Operating
- Headcount range
- 51–100 employees
- Short description
- Formations is a US SaaS platform that bundles S-Corp formation, bookkeeping, payroll, tax preparation, and benefits management for full-time self-employed professionals, primarily real estate agents, consultants, and freelancers.
- Ownership category
- akta.pro rank
Formations industry classification
Industry- Product category
- Tax management software
- akta.pro primary industry
- eSignature, Forms & Digital Workflow Platforms (HDAEAHAJ)
Keywords
Where Formations is headquartered
LocationHeadquarters
- HQ city
- Kirkland
- HQ country
- United States
- HQ region
- North America
Offices2 records
Markets served
Formations business model
Business model- GTM type
- B2C
- Offering type
- Software
Revenue model
- SaaS Subscription Services: Annual subscription-based SaaS service providing ongoing tax management, bookkeeping, payroll processing, and financial dashboard access. The subscription term is typically 12 months with automatic renewal. Pricing varies based on plan tier selected.
- Tax Preparation Services: Professional tax preparation and filing services included as part of the annual engagement letter. Covers personal and business tax returns for self-employed professionals including quarterly estimates and annual filings.
- Entity Formation Services: Business formation services including LLC and S-Corp setup with the right structure tailored to maximize tax savings. Initial onboarding service for new customers.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Subscription | Annual | Custom pricing based on business complexity and service needs |
Go-to-market motion3 records
Distribution channels4 records
Marketing channels8 records
Formations product offering
Product offeringCore offering
Formations is a financial management platform purpose-built for self-employed professionals. It bundles S-Corp election, bookkeeping, payroll, proactive tax planning, and tax filing into an annual subscription, supported by a dedicated tax advisor.
Product overview
Formations is a unified tax management SaaS platform for self-employed professionals, offering a comprehensive suite of services including S-Corp management (entity formation, payroll, tax planning), automated bookkeeping and accounting, tax preparation and filing, business banking integration, financial dashboarding, and self-employed benefits management (401(k), HSA, healthcare). The platform operates as a subscription-based SaaS with services delivered through web-based access, mobile app, and expert human support. The core value proposition centers on S-Corp tax optimization, with customers averaging $14,801 in annual tax savings. Services are primarily targeted at real estate professionals and consultants, though the platform supports self-employed workers across all industries.
Differentiator
Problem solved
Functional benefit
Products and services
- S-Corp Formation & Management End-to-end S-Corp election, ongoing compliance, and administration for self-employed individuals who elect S-Corp status to optimize self-employment taxes.
- Bookkeeping Automated bookkeeping service that categorizes transactions, reconciles accounts, and prepares monthly financial statements for self-employed professionals.
- Tax Filing Annual federal and state business and personal tax return preparation handled by a dedicated tax advisor assigned to each client.
- Payroll Owner payroll processing and filings for S-Corp owners to ensure reasonable compensation requirements are met and payroll taxes are filed on time.
- Tax Planning Year-round proactive tax planning service that models entity structure, deductions, and distributions to minimize the client's annual tax liability.
- S-Corp Savings Calculator Free self-serve online tool that estimates potential self-employment tax savings from electing S-Corp status, used as a lead-generation entry point.
Quantifiable outcome
- Average tax savings of $14,801 per year per customer
- +3 more outcomes
Companies that use Formations
Customer profileNamed customers13 records
Segments4 records
Formations technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration2 records
Feature5 records
Formations partnerships and signals
Strategic signalScale indicators5 records
Recent moves6 records
Expansion highlights5 records
Formations competitors and assessment
Company assessmentDirect peers
- Collective: Collective is an all-in-one financial platform for self-employed/freelance business owners offering S-Corp formation, bookkeeping, tax filing, and payroll—directly mirroring Formations' core offering and target customer.
- Keeper (formerly Keeper Tax): Keeper provides AI-powered tax filing, expense tracking, and write-off discovery for freelancers and self-employed individuals, overlapping heavily on the tax-optimization value proposition for the same SMB segment.
- Found: Found combines business banking, bookkeeping, and tax tools for self-employed Americans and sole proprietors, competing head-to-head with Formations on integrated financial management for solopreneurs.
- FlyFin: FlyFin uses AI plus CPAs to find tax deductions, file taxes, and handle bookkeeping for freelancers and self-employed professionals—a closely comparable offering in the same target segment.
- Bench: Bench offers AI-powered bookkeeping with dedicated accountants, plus tax filing support for small businesses—a direct competitor in the SMB bookkeeping-plus-tax category Formations serves.
- Botkeeper: Botkeeper provides automated bookkeeping with human support, serving SMBs and accounting firms—comparable automation-first approach to Formations' bookkeeping and financial management workflows.
Broad incumbents
- QuickBooks Live (Intuit): Intuit's QuickBooks Live bundles bookkeeping, tax filing, and expert support inside the dominant small-business accounting platform—a much larger incumbent offering overlapping services for the same SMB audience.
- H&R Block Premium & Self-Employed: H&R Block's Self-Employed edition is a longstanding, mass-market tax filing product tailored to freelancers, consultants, and gig workers—an incumbent competing for the same self-employed tax dollar.
- 1-800Accountant: 1-800Accountant is a virtual accounting and tax service for small businesses and self-employed individuals, providing bundled bookkeeping, tax, and advisory services comparable in scope to Formations' offering.
Emerging players
- Bonsai: Bonsai is an all-in-one business platform for freelancers and solopreneurs covering contracts, invoicing, accounting, and taxes—overlapping with Formations on financial management for independent professionals.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks6 records
Key highlights7 records
Customer concentration
Formations social profiles
Digital presenceFormations compliance and trust
Trust signalCompliance2 records
Formations financial estimates
Financial estimateRevenue estimate
Valuation estimate
Formations leadership team
Management profileNumber of profiles
Formations funding detail
Funding detailFunding overview
Funding rounds2 records
Investors1 record
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Formations M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Formations
What does Formations do?
Formations is a financial management platform purpose-built for self-employed professionals. It bundles S-Corp election, bookkeeping, payroll, proactive tax planning, and tax filing into an annual subscription, supported by a dedicated tax advisor.
Is Formations a public or private company?
Formations is a private company. It is classified as venture growth investor backed and is currently operating.
When was Formations founded?
Formations was founded in 2019. It employs 51 to 100 people.
Where is Formations based?
Formations is headquartered in Kirkland, United States, in the North America region.
How does Formations make money?
Three revenue lines are on record. SaaS Subscription Services are the primary driver. The others are tax Preparation Services and entity Formation Services.
Who are Formations's main competitors?
Direct peers on record are Collective, Keeper (formerly Keeper Tax), Found, FlyFin, Bench and Botkeeper. Broad incumbents are QuickBooks Live (Intuit), H&R Block Premium & Self-Employed and 1-800Accountant. Bonsai is listed as an emerging player.
Does Formations have an API?
No public API is recorded for Formations.
What industry is Formations in?
Formations's product category is Tax management software. Its primary akta.pro industry code is HDAEAHAJ, eSignature, Forms & Digital Workflow Platforms.