Business Taxes: Tips & Tricks for Creatives

Tips on Getting Your Taxes in Order Now from Zac Spainour

Wait … why are we talking about paying taxes in August? Tax filing on April 15, 2025, is nearly 35 weeks away?

We’re talking about it now because you still have just under 35 weeks to make some changes in how you handle your taxes. And, these changes could have a huge impact on your bottom line next year.For advice on taxes, we turned to LEGO creative genius (see him here on QC Life), music producer AND tax prep expert, Zac Spainour. In fact, he is an Enrolled Agent, an individual who has earned the privilege of representing taxpayers before the Internal Revenue Service.

A few weeks ago, Zac taught a free Creative Convo for us.

We recorded the 60-minute session and you can watch it right here, which we highly recommend. Here’s just a taste of the knowledge Zac dropped on us.

To LLC or Not to LLC?

Choosing the right business structure is crucial for your success. You need to ask yourself many questions up front and select a legal identity that matches your needs and intentions for today and tomorrow.

Keep Good Records and Your Finances Separate

Don’t commingle your money. It’s critical to maintain a separate bank account to protect your personal assets and those related to your business. When tax time comes, fortune favors the prepared. Make sure you’re keeping contracts, invoices, and receipts to back up what’s in your statement.

Use Accounting Software, Not a Spreadsheet

Using simple software like QuickBooks makes this easy for you day-to-day and will simplify communication with your accountant.

Plan for Self-Employment Taxes

If you’re self-employed, make sure that every time you’re paid for a job, you set aside the full 15.3% FICA taxes. Consider making estimated tax payments throughout the year to avoid underpayment penalties.

Understand What Can and Can’t Be Deducted as a Business Expense

Only plan to deduct expenses that are ordinary and necessary for your line of work. Common deductible expenses include advertising, vehicle costs, and legal services. But commonly misunderstood deductions, like home office expenses, can trigger IRS audits. If you’re confused, consult a tax professional.

Prepare for the Future

It may hurt (especially if you’re pulling self-employment tax out of profit), but be disciplined about saving some money for an emergency fund to cover unexpected expenses. Consider setting up a SEP IRA, SIMPLE IRA, or solo 401(k) for retirement savings.

REACH OUT TO ZAC
If you have questions after watching Zac’s class, reach out to him at Spainhour Tax Prep. MORE INFO.