Generally, S-Corp election becomes beneficial when your net self-employment income exceeds $50,000-$60,000 annually. At this level, the self-employment tax savings typically outweigh the additional administrative costs (payroll, separate tax filing, etc.). Every situation is unique—consult a tax professional before making this decision. Use our free calculators to estimate your taxes, find deductions, and see if an S-Corp could save you money. Gain a deeper understanding of your financial performance with tailored analytics and reports.
What is a tax return for Small Businesses and Freelancers in 2026?
Whether you’re just starting out or have already seen significant growth, we’re here to help you navigate the challenges of growing a business and managing your finances. At Gorilla Accounting, we are experts in accounting for social media influencers, content creators and online entrepreneurs. We understand the complexities of earning through multiple streams of income and can help you navigate your way through anything you’re uncertain of. As a self-employed content creator, you’re responsible for paying self-employment taxes. Be sure to set aside a portion of your income throughout the year to cover these taxes. Hiring a CPA familiar with accounting for content creators can ensure that you don’t miss any important deadlines or deductions.
Use accounting and bookkeeping software and tools
It fuels agility, accuracy, and bottom-line growth with AI that automates tasks, surfaces insights, and drives better decisions. ClickUp is an all-in-one productivity platform for teams to collaborate on everything from process docs to product design. Finally, you have to record the value of gifted items if you get paid in kind instead of cash, as it will be needed for tax purposes.
Income reporting
You can prepare for peaks and slow periods while allocating your budget appropriately and making informed decisions that help you build a digital empire. We also need to think about depreciation—the idea that an asset can lose its value over time. After 10 years, the car is worth a lot less than it was when it was first purchased.
- Legal services protect you during brand partnership negotiations and contract reviews.
- If you’re looking for an influencer accountant who can help you with the financial side of success, Gorilla Accounting can help.
- This keeps you in control of your finances without being tied to your desk.
- It’s even trickier if you’ve never run your own business before, and this is all new waters for you.
- When you’re self-employed, your future financial security is entirely up to you—and the sooner you start saving, the better.
It helps you see where your money is going, identify opportunities for growth, and stay on the right side of the IRS. Think of it as the essential, behind-the-scenes work that makes your public success possible. If you’ve ever had a W-2 job, you’ve seen deductions for Social Security accounting for content creators and Medicare on your pay stub. As a self-employed creator, you’re responsible for paying both the employee and the employer portions of these taxes.
Digital creators often have multiple sources of income such as ad revenue, sponsored content, merchandise sales, memberships, donations, or affiliate marketing. While all this money ends up in your bank account, each type of income needs to be accurately tracked and categorized in your books. Earning money as an influencer or a digital creator is growing in popularity. And how you earn money in the https://swapmytest.co.uk/bulk-transfers-made-easy-examples-benefits-and/ digital world needs to be adequately recorded in your books.
- Even things like gaming consoles, music licensing, or TikTok tools could count.
- Plus, it syncs with payment platforms like PayPal and Stripe, ensuring that no revenue goes unrecorded.
- Cameras, lenses, microphones, lighting kits, computers, and other tech-related items are all essential for running the business.
- Gain a deeper understanding of your financial performance with tailored analytics and reports.
- Programs like QuickBooks, FreshBooks, and Xero are popular because they offer tools for expense tracking, invoice management, and financial reporting.
- It’s time to make more money while focusing on your passion—making a decision between the two is no longer necessary.
- It offers expert tax, accounting, and bookkeeping services to optimize your financial strategy, maximize tax write-offs, and reduce your tax liability.
- Done right, bookkeeping can help you save money, make smarter business decisions, and actually enjoy tax season (well… maybe just a little).
- When I see this line being crossed with my own clients, we educate them on the risks and work together to create clear boundaries between business and personal accounting.
- Keeping tabs on multiple revenue streams—from brand deals to affiliate income—can be overwhelming.
Platforms like QuickBooks or Xero are popular for a reason—they automate many tedious tasks and integrate directly with your business bank account. The key is finding the right fit for your specific needs as a creator. If you’re unsure where to start, getting professional help with accounting software implementation can ensure you’re set up for success from day one.
BUSINESS ESSENTIALS
Your insurance premiums are likely deductible as a business expense. Protect your personal assets like your car and home in the event of a bankruptcy or lawsuit that affects your business by forming a separate entity to manage your business assets. With diverse income streams, consulting an accounting expert can help you navigate the complex rules of your industry. If you make more than $400 per year after operating accounting expenses, you’re expected to make payments on your self-employment taxes every quarter. Whether you’re a solo creator with a growing YouTube following or a multi-platform business earning six figures, Polaris can support your growth.
Since “professional TikToker” wasn’t exactly a career option when tax laws were written, there’s still a lot of confusion about what influencers can actually deduct. Because of that, most influencers leave thousands on the table every tax season because they don’t know what they can legally deduct from this emerging industry. The money you make from this is taxable, and you have to handle any applicable sales tax. A study from the IRS found that small business owners who fail to take advantage of tax deductions lose an average of 15% in potential savings. Don’t miss out on these opportunities—stay organized and informed about what you can deduct. The first step to hassle-free accounting, tax returns, and tax planning starts by reaching out to one of our representatives.
