A creator came to us after absolutely killing it on Instagram. Brand deals rolling in, six figures in revenue, life was good. Then tax season hit. The bill? Somewhere around $40,000. Nearly 40% of everything earned, gone. Where was he at that point?
“I don’t know what to do.”
As a CPA for content creators, we hear that a lot. And honestly, it’s sad every time. Not because the taxes themselves are unfair (the government’s going to get its cut one way or another). But because so much of that pain is avoidable. Nobody teaches you this stuff in school (unless you go into accounting like I did). And nobody sits you down after your first brand deal and says, “Hey, you need to set aside a third of that check.”
But here’s the good news: there are exactly three moves that will keep you from crying at your kitchen table in April. They’re not complicated, and they’re not some secret loophole. They just require you to actually set them up. Let’s walk through them.
Step 1: Understand Estimated Taxes
Here’s what surprises many influencers. With a regular W-2 job, your employer automatically withholds taxes from your paycheck. You don’t even notice it. The money just disappears into the IRS’s hands before you see it. But as an influencer or content creator, no one is doing that for you. You sign a contract with a brand, get full amount, and think it’s yours. But it’s not.
The government expects its cut throughout the year, not all at once on April 15th. That means you have to make quarterly estimated tax payments. Four times a year, you calculate what you owe and send it in. Skip them, and you face penalties. The IRS hits you with extra fees for being late. (Great, right?)
Why care about this?
Quick note: this isn’t just about avoiding penalties. Quarterly payments push you to face your tax situation in real time. Many creators who get stuck with big tax bills didn’t have a tax issue. They had an awareness issue. They never looked at the numbers until it was too late. Here’s what you need to do:
- Mark the quarterly tax deadlines on your calendar now
- Calculate your estimated tax obligation based on projected income
- Actually pay them. On time. Every quarter. If you’re unsure how to calculate your estimated payments, working with an accountant who understands creator income is worth it.
Step 2: Open a Tax Bank Account
This is the single most practical piece of advice we give every influencer client. It sounds almost too simple.
Open a second bank account.
That’s all it takes, a separate account dedicated entirely to taxes.
Here’s how it works: every time money comes in from a brand deal, ad revenue, affiliate income, whatever, you immediately transfer 25 to 30 percent of that amount into your tax account. Not next week. Not when you “get around to it.” Immediately.
Why does this matter so much?
Psychology (and we see it constantly). A creator has one bank account; all the money sits in one place. They log in, see a fat balance, and think, “I can afford that trip” or “I deserve that bag.” And they’re not wrong about deserving nice things. But that balance is lying to them. A quarter of it was never theirs to spend.
“A lot of our clients just see that money sitting there and they are like, ‘I want that.’ Then they use it. Then they do not have money for taxes.”
Honestly, sound familiar?
Look, by moving tax money into a completely separate account (ideally at a different bank, so you don’t even see it when you check your main balance), you remove the temptation entirely. You’re mentally operating off your real spending money, not the government’s cut.
Pro tip: The 25-30% range is a solid starting point, but your actual rate depends on your state and total income. If you’re making $100,000 and live in a high-tax state, you could be looking at 35-40% in combined federal and state taxes. Better to over-save and get a nice surprise than under-save and scramble.
This is not just a tax hack. It’s cash flow management fundamental from a CPA for content creators. It makes you a better business owner.
Period.
Step 3: Optimize Your Business Structure
Now we get to the big one. Steps one and two help with the taxes you owe. Step three helps you reduce them. If you are a sole proprietor or a single-member LLC, here’s the deal: you pay something called self-employment tax on everything you earn. This is the Social Security and Medicare tax, and it’s hefty, at 15.3% of your income. Before federal and state income taxes hit, 15.3% is already gone. On $100,000 in revenue, that’s over $15,000 just in self-employment tax. Add federal income tax and state tax on top, and suddenly you’re staring at a bill of $35,000-$40,000, depending on where you live. Almost half your earnings. Gone. But there’s a way to dramatically reduce that number. Context matters. It’s called an S Corp election. Without diving too deep into accounting weeds, an S Corp divides your income into a “reasonable salary” and distributions. You only pay that 15.3% self-employment tax on the salary portion. The distributions? They skip that tax entirely. The savings can be thousands of dollars. Real money that stays in your pocket instead of going to the IRS. When does an S Corp make sense?
Not everyone should rush to file for one tomorrow. The general threshold we recommend is around $60,000 in income. Once you are consistently above that, the math works heavily in your favor. Below that, added complexity and costs of maintaining an S-Corp might not be worth it. But if you’re earning $100,000 or more? Not having an S Corp is like leaving thousands of dollars on the table every year. And for what? Because nobody told you it existed? Obvious? Maybe not. Here’s what to do:
- Evaluate your current entity structure (sole proprietor, LLC, partnership, etc.)
- If you earn over $60,000, consult an accountant about whether an S Corp election makes sense for you
- Obvious? Maybe not. Get the structure set up properly to save the most in taxes
Important note: Don’t just ask any accountant; work with someone who knows influencer and creator income. A general tax preparer might miss opportunities specific to your industry.
Putting It All Together
These three strategies aren’t separate things you pick and choose from. They work together as a system. Your S-Corp structure cuts down what you actually owe. Your tax savings account makes sure the money is sitting there when the bill arrives. And your quarterly payments keep the IRS off your back so you’re not paying penalties on top of everything else.
Skip one of them, and things get shaky. Skip all three and you’re looking at a $40,000 gut punch come April.
Here’s the quick version:
- Pay estimated taxes quarterly. The IRS wants payments spread across the year, not one big lump sum at the end. Miss them, and you’re paying penalties on top of an already painful bill.
- Open a dedicated tax savings account. Move 25-30% of every dollar you make into it right away. Out of sight, out of mind, out of temptation.
- Optimize your entity structure. Once you’re around $60,000 in income, an S Corp election can save you real money by cutting into that 15.3% self-employment tax burden.
None of this is complicated, and you don’t need a finance degree. You just need to set it up and follow through.
We’ve seen too many creators come to us after a genuinely great year. They’re finally hitting their stride, building something real, and then they’re completely blindsided by a tax bill they never saw coming. Every single one of those situations could have been avoided with exactly what’s described above.
If any of this sounds familiar, or you know a fellow creator who’s just winging it, don’t wait until April. Get your structure right, open that second bank account, start making quarterly payments. Your future self will genuinely thank you.
Want a CPA for content creators to look at your specific situation? Reach out to BizBud for tax consultation built around your income, your state, and where you’re trying to go. There are plenty more strategies beyond these three. But this is where you start.
About The Author:
Cameron Botes is the founder of BizBud, a tax and accounting firm built for content creators, influencers, digital nomads, and entrepreneurs building businesses across borders. A former professional soccer player across four continents, Cameron brings the same discipline, preparation, and pressure-tested execution from his athletic career into helping business owners plan ahead, stay compliant, and keep more control over their financial future.
Since founding BizBud in 2020, Cameron has grown the firm from a one-person practice into a team of CPAs and tax advisors serving hundreds of clients across the U.S. and around the world. With an MBA in finance and accounting, international business experience, and a team with backgrounds at firms like PwC, Deloitte, and EY, Cameron helps creators and founders simplify taxes, clean up their books, and build smarter systems so they can focus on the work they actually love.
