Formations

Formations

Financial Services

Kirkland, Washington 4,823 followers

Predictive tax management for the self-employed.

About us

Formations is a predictive tax management solution for the self-employed. We help businesses of one manage their taxes predictably so they can maximize their savings, reduce their annual tax liability, and prevent surprises. Formations customers save over $11k in taxes annually, have better insights and visibility of their financials, and are able to make better business decisions. Your future may be unpredictable, but your taxes don't have to be.

Industry
Financial Services
Company size
51-200 employees
Headquarters
Kirkland, Washington
Type
Privately Held
Founded
2019
Specialties
taxes, self-employed, and financial management

Locations

Employees at Formations

Updates

  • Formations reposted this

    View profile for Shahar Plinner, graphic

    CEO and Founder @Formations

    Why We’re Motivated to Build a Tax and Accounting Company, Not Just a Tech Company Startups are hard. But you know what else is hard? Accounting. Formations, our motivation comes from a deep understanding of how difficult it is to navigate taxes and finances—not just as a business, but as the self-employed individuals we serve. Our roots are in tax and accounting. It’s not just a product vertical or a market segment; it’s our DNA. 🧬 Frank Rotman’s recent post about the importance of first principles in an age of disruption resonates deeply. While many solutions in our space are motivated to build tech companies that happen to focus on tax and accounting, we’re building something fundamentally different. We’re motivated to build a tax and accounting company—where technology is the enabler, not the purpose. Why does that distinction matter? Because our priorities, problem-solving, and customer value are rooted in the needs of the self-employed. We don’t just “happen” to focus on taxes. Our focus has delivered real results for the self-employed: 🤑 On average, we help our customers save $14,801 in taxes annually, putting more money back into their businesses and lives. 🏠 We empower customers to use tools like #costsegregation for the first time, making their real estate portfolios significantly more tax-advantaged. 🧓 We simplify and encourage #401k participation, helping our customers build strong retirement cushions that are often overlooked in the self-employed world. ⏲️ 65% of our customers filed their taxes without needing an extension, demonstrating how proactive planning and accurate execution can reduce stress and improve outcomes. 🎮 Beyond compliance, we help customers take control of their financial futures with actionable insights that transform how they think about taxes and finances. And for us as a company, staying rooted in first principles means operating with discipline and focus: 🧑⚕️ We’re proud to maintain healthy operations, growing profitably while staying at a break-even position. 💰 We’re on track to achieve profitability for the first time in 2025, a testament to our sustainable and focused approach. 🪴 Month over month, we’re maintaining healthy double-digit growth rates, with an average renewal rate of over 90%, proving that a customer-first mindset and disciplined operations can drive long-term success. By staying true to our foundational truths, we create solutions that make a real impact. In times of rapid change, when narratives and disruption dominate the conversation, anchoring ourselves in first principles ensures that we’re delivering tangible value where it matters most. So yes, startups are hard. But building trust in an industry where every dollar counts? That’s where the real challenge—and reward—lies. #Leadership #FirstPrinciples #Accounting #TaxTech #Motivation #Startups

    View profile for Frank Rotman, graphic

    Partner at QED Investors

    The Wisdom of First Principles in an Age of Disruption In times of profound transformation, there's a natural tendency to get caught up in the swirling currents of change, to chase every new trend and possibility. Yet paradoxically, these are precisely the moments when it’s important to anchor ourselves to fundamental first principles – the bedrock truths that have governed success and failure throughout EVERY cycle. Consider the startup ecosystem today. We're witnessing a perfect storm of transformative forces: artificial intelligence is threatening to reshape entire industries, capital is being concentrated in unprecedented ways among the largest firms, and thousands of startups are emerging daily, many treading similar paths with slight variations. The temptation is to view everything through the lens of disruption, to assume all old rules are obsolete. But this thinking leads to dangerous territory. Just as a sailor will rely on their compass and fundamental navigation principles in a bad storm, Founders and Investors need to return to core truths of how businesses work. What creates lasting value? What constitutes genuine product-market fit? How can enterprise value be compounded over time? These questions aren't rendered obsolete by technological change – they become more critical. The current environment, flush with capital and technological possibility, risks what might be labeled a "suspension of disbelief" in basic business principles. Startups have been funded and valued based on narratives and “destination positioning” rather than fundamental business metrics. While this can drive innovation, it also leads to inefficient allocation of resources and ultimately a massive destruction of capital. History has taught us that periods of explosive growth are typically followed by periods of consolidation and destruction. Darwin can go on vacation for short periods of time but he always returns. (Click the link for the whole post....LinkedIn limits word count!) https://lnkd.in/e8ii6GEm

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  • Formations reposted this

    View profile for Shahar Plinner, graphic

    CEO and Founder @Formations

    Today's news about Bench Accounting closure is a surprising moment for our industry, and for many, may serve as a “wake up call.” Having been in this space for 20 years, I know the dedication and effort the Bench team put into serving small businesses, and some of the recent challenges they’ve faced as they scaled. To their employees, partners, and customers: I’m sorry to see this happen, especially during a holiday week as year-end books are closed out. This moment reflects deeper truths about our industry. Bookkeeping and accounting aren't services that are easily productized – they're complex disciplines requiring deep expertise across federal, state, and local regulations. The challenge of scaling a business while maintaining quality and customization is immense, especially when venture returns demand exponential growth. We're witnessing a tipping point in tax and accounting services. The growing demand for accounting expertise collides with a scarcity of talent, creating a market imbalance. It's a paradox: what feels like a commodity service to clients operates in a reality of severe supply constraints. While AI promises to revolutionize our industry, it’s not easy to replicate the nuanced judgment and customization that clients need and expect. The path forward, I believe, lies in two directions: 1. Embracing "tech-enabled services" that thoughtfully combine human expertise with scalable technology. 2. Fostering a diverse ecosystem of providers to serve the vast range of needs. There will be time for deeper reflection, but for now, our focus should be on helping Bench customers scramble to find a solution. My philosophy is always to “give more than we ask for” so here’s what we can do…and also a list of other vendors you should check out. I invite you to check out Formations. Our platform is world-class and AI-powered, but the real magic is the people. Our accountants and tax pros are hands-on, working with customers to put their back office on auto-pilot, optimized for tax savings. - We’ll review and migrate your books from Bench - We’ll prep and file your 1040, 1120s, and/or 1065 My DMs are open if you’d like to learn more or sign up directly at formationscorp.com and use the code BENCHCUSTOMER to save 20% on your subscription. Here are other solutions to check out: Lettuce Financial For the self-employed. Pilot.com For small businesses with 5 or more employees. doola. For e-Commerce businesses. KICK.AI Self-serve bookkeeping. Collective. For solopreneurs. Heard. For therapists. I also have a strong network of neighborhood accountants and CPAs I’m happy to introduce you to. Kathryn Minasian and Kristine X. Nguyen and David Romano I am sure there are more I have not mentioned here, so please feel free to use the comments to add your favorite. We need an industry-level effort to serve people. This is a time to come together and make sure customers have a solution. #AccountingIndustry #SmallBusiness #FutureOfWork #TechInnovation

    Financial Management for the Self-Employed – Formations

    Financial Management for the Self-Employed – Formations

    formationscorp.com

  • Formations reposted this

    View profile for Shahar Plinner, graphic

    CEO and Founder @Formations

    💡 The CPA Profession is Changing – Are We Ready to Capture the Opportunity? 💡 Jody Padar’s latest article highlights a radical shift in the tax and accounting industry—a move from traditional CPA firms to tech-driven "new firms" powered by live data and real-time decisions. Formations, we see this transformation as a game-changer. 🔑 Real-time data and automation empower CPAs and accounting professionals to shift focus from compliance to strategy—unlocking opportunities to offer more services and solutions. When financial decisions are made in real-time, the impact on customers is huge. This is where the moment of now becomes crucial—not just for delivering value but for increasing revenue. By leveraging live data, we can: ✅ Help customers make smarter decisions. ✅ Offer upsell opportunities with meaningful solutions. ✅ Drive value while growing the cart size for every customer. The future of our profession isn’t about protecting the past—it’s about embracing innovation and creating value, both for customers and firms. What are your thoughts on using real-time insights to enhance customer experience and drive growth?

    Traditional firms are fading, and with them, the structures we’ve relied on for decades. What replaces them isn’t just new firms — it’s an entirely new way of thinking, a shift that forces us to ask: What does it mean to work in a CPA firm? Dive into my Substack for a deeper exploration of the future. https://bit.ly/4f1rHD5 Haven’t subscribed yet? You’re missing out on the big questions that demand bold answers. Hit that button! Shoutout to my incredible sponsors who make these insights possible: ADP | Blue J | MakersHub | Progress ShareFile | Rho | Staffing Global Network LLP #TaxTwitter #AccountingandAccountants #RadicalCPA #CPA #CPAfirm #RadicalNewVision

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  • There's still time to save on your 2024 taxes! Did you know that as a small business owner, if you purchase an annual plan from Formations before December 31st, you can deduct the ENTIRE expense on your taxes? This is one of the many ways we help our customers put more money in their pocket each year. And if you sign up before December 31st, we'll take 20% off of your subscription when you use the code: 2024RESOLUTION Want to get started? Head over to formationscorp.com and hit (you guessed it) "Get Started" Here's how it works: 1. You'll answer some brief questions and we'll recommend a plan for you 2. You'll start the incorporation process (if necessary) 3. Verify your identity 4. Confirm your subscription (Don't forget the coupon code above)   The whole thing can be done in under 10 minutes, and our team takes it from there! Your onboarding manager will reach out to confirm details and get the ball rolling, based on the package you select.   All of our S-Corp packages include prep and filing your business (1120S) and personal (1040) taxes, payroll, business banking, expense tracking, tax strategy, quarterly tax estimates, reporting, live expertise from our team of tax and accounting experts, and so much more.    We can't wait to work with you!

  • Formations reposted this

    Taxes are your largest business expense and the drive towards 2025 is well underway. Our very own Nick Cisler, former financial advisor, will sit down with Formations CEO Shahar Plinner to unpack key strategies for self-employed folks to prime your business for financial success. Why? Because when you're working for yourself, your plate is already full. Join us for actionable insights to set your business like a well oiled machine. Sign up now: https://lu.ma/vqh8p6lx

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  • Formations reposted this

    “I’ve been working with the team at Formations for about three years now, and for as much money as they’ve helped me save on taxes, they’ve saved me even more time and peace-of-mind…I used to try to figure all this stuff out on my own.” Fantastic segment on health insurance for the self-employed, and thanks for the shoutout David Steininger! 🤘🏼🤘🏼🤘🏼

    View profile for David Steininger, graphic

    Helping fellow self-employed folks grow stronger businesses

    Another friendly reminder for my fellow self-employees, open enrollment is now in session for health insurance marketplaces. If you're enrolling for the first time, or need to make changes to your current plan, now's the time to do it (double check your state's deadlines as they may vary in different locations). And if you're on the fence about purchasing health insurance at all because it's complicated and expensive.... you're not wrong! That's why I've been putting together a few videos to share what I've learned about the process. In my latest video, I show how you might be able to save a chunk of change by purchasing health insurance through your business and taking advantage of different tax deductions. #healthinsurance #selfemployed #taxtips

  • “I’ve been working with the team at Formations for about three years now, and for as much money as they’ve helped me save on taxes, they’ve saved me even more time and peace-of-mind…I used to try to figure all this stuff out on my own.” Fantastic segment on health insurance for the self-employed, and thanks for the shoutout David Steininger! 🤘🏼🤘🏼🤘🏼

    View profile for David Steininger, graphic

    Helping fellow self-employed folks grow stronger businesses

    Another friendly reminder for my fellow self-employees, open enrollment is now in session for health insurance marketplaces. If you're enrolling for the first time, or need to make changes to your current plan, now's the time to do it (double check your state's deadlines as they may vary in different locations). And if you're on the fence about purchasing health insurance at all because it's complicated and expensive.... you're not wrong! That's why I've been putting together a few videos to share what I've learned about the process. In my latest video, I show how you might be able to save a chunk of change by purchasing health insurance through your business and taking advantage of different tax deductions. #healthinsurance #selfemployed #taxtips

  • Formations reposted this

    View profile for Kevin Shively, graphic

    SaaS Revenue at Formations. 5x Marketing Leader. 2x Exits.

    A couple weeks ago I sat down with Elaine Lin Hering, author of the USA Today Best-Selling book Unlearning Silence: How to Speak Your Mind, Unleash Talent, and Live More Fully. I started reading her book this week and it's a great perspective on not only how to speak up, but how often we as leaders, parents, friends unknowingly (or knowingly) foster a culture that convinces people to shut up more, and keeps them from speaking up when they should. It's a fantastic read. I'm not done, but I highly recommend it. We move quick and spend a lot of time thinking tactics and strategy instead of environment, but it's got me thinking deeply about how I can create environments - specifically in the workplace - where people feel empowered, comfortable, and eager to speak their mind. How can I better recognize my OWN communication patterns and show up more intentionally for those around me? (link to check out the book, and to the full interview in the comments)

  • Formations reposted this

    View profile for Kevin Shively, graphic

    SaaS Revenue at Formations. 5x Marketing Leader. 2x Exits.

    “$14,801 is such a specific number Kevin…why?” Over on Instagram, we’re running a promo that I am definitely NOT promoting on LinkedIn, because as I learned yesterday, that’s against the TOS. But I do want to talk about connecting your value props to your hooks. In this case, $14,801 is the average amount our customers increase their take home pay by following the Formations playbook. The campaign, which is only running on Instagram and not on LinkedIn, gives one self-employed winner a taste of what that’s like for our customers, and seeds one of our biggest value props in a fun, repeated way. The UGC videos being posted are even saying “I need to see if I can save that much now” Campaigns like this are fun, but always think about how you can tie it to a bigger message…like we’re doing over on Instagram (@formationscorp) and not here on LinkedIn.

  • Formations reposted this

    View profile for Shahar Plinner, graphic

    CEO and Founder @Formations

    Regrettable churn? Let's talk about setting the right expectations upfront. As tax and accounting pros, we’re fantastic at telling customers what we do. But to keep everyone on the same page, we also need to clarify what we don’t do. Because guess what? When customers understand exactly what to expect (and what not to expect), everyone’s happier! Some things we don't do: 💸 We don’t physically go to the bank to open accounts for you (but we’ll advise you on what to look for!) 💹 We’re not financial advisors, lenders, or insurance agents (we’ll point you to trusted pros, though). 🧝♂️ We’re not magicians—we can only deliver great value if you keep us in the loop with your information. And let’s talk communication! 📠 It's crucial to have a clear SLA in place: when should clients expect a response, and what does that look like? Knowing these timelines can save a lot of stress and build trust daily. Today, an insightful churn-save call turned into an upsell opportunity 🤑 just because we took the time to share our end-to-end services! It’s a reminder: never assume clients are aware of all the ways we can support them. A quick overview of our offerings can open doors, and sometimes, that’s all it takes to turn "maybe not" into "yes, please!" Setting clear expectations is how we keep customers happy, engaged, and growing alongside us. Trust is built one day at a time—and we’re here to earn it. #heretohelp

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Funding

Formations 2 total rounds

Last Round

Series A

US$ 8.0M

See more info on crunchbase