Taxes, Financial Planning, and Safeguarding Your Creative Legacy

You know what they say about death and taxes—two certainties in life, but only one of them comes with a deadline every April. For creators like you, juggling projects, deadlines, and big dreams, taxes and financial planning might feel like the boring, distant cousin you’d rather not invite to the party. But here’s the thing: if you ignore them, they won’t just leave you alone—they’ll crash your party and bring chaos.

Let’s dive in (without calling it that) and make these topics not just manageable but empowering. Trust me, your future self—and your family—will thank you.

Separate Your Money Like You Separate Your Colors

Think of your finances like a painter’s palette. You wouldn’t mix all your colors into one messy blob, right? The same goes for your money. Keeping your personal and business finances separate isn’t just smart; it’s essential.

Open a business bank account. Use it for every penny coming in or going out of your creative ventures. Not only will this make tax season infinitely easier, but it’ll also help you see how your creative work is really performing. Plus, it looks far more professional when clients write checks to your business name rather than directly to you.

And let’s be real: when your accounts are a tangled mess, it’s a nightmare to untangle. So, save future-you the headache and start fresh today.

Know Uncle Sam’s Rules for Creators

If you’re working for yourself, you’re not just the artist—you’re also the HR department, the accounting team, and, yes, the person who deals with taxes. That means understanding self-employment taxes. It’s not glamorous, but it’s vital.

Here’s the deal: when you’re self-employed, no employer is withholding taxes for you. That’s on you to calculate and pay, typically in quarterly chunks. The IRS isn’t shy about penalties for missing deadlines, so staying ahead of this game is critical.

Pro Tip: Deduct Like a Boss

One of the perks of running your own show is the long list of deductible expenses. Your laptop, editing software, that cozy nook you’ve turned into your home office—these could all reduce your taxable income. But—and this is key—keep records. A shoebox full of receipts isn’t a system. Use an app or software to log expenses as you go.

Selling digital goods or art prints? Don’t forget sales tax. Laws vary wildly by state and country, and they’re constantly changing. Check the rules where you do business, and if this makes your head spin, hire a pro.

The Quiet Hero of Your Success: A Good Tax Professional

You don’t need to go it alone. A tax professional who understands creative businesses can save you time, money, and stress. They’ll help you navigate deductions, comply with sales tax rules, and even avoid rookie mistakes that could flag your return for an audit.

Yes, it’s an expense, but consider it an investment in your peace of mind. You wouldn’t skimp on quality tools or materials for your craft—your financial health deserves the same care.

Let’s Talk About the Hard Stuff: Business Succession

It’s not exactly fun to think about what happens if you’re suddenly unable to run your business, but it’s crucial. Imagine this: your business is thriving, your projects are in full swing, and then something unexpected happens. Who steps in? What happens to your income, your clients, or your creative assets?

Here’s the good news: a little planning now can save a lot of heartache later.

The Emotional Side of Planning

This isn’t just about money or logistics. It’s about protecting what you’ve built and ensuring it doesn’t become a source of stress for your loved ones. Think of it as creating a safety net—one that lets you (and your family) focus on healing and moving forward if life throws the unexpected your way.

Why It All Matters

Here’s the takeaway: managing your taxes and planning for the future aren’t just boring obligations—they’re acts of care. Care for your business, your dreams, and the people who rely on you. It’s about being in control, even when life feels unpredictable.

So, start with one step. Open that business account. Call that tax professional. Take an hour to jot down what you’d want to happen to your business if you couldn’t run it. Small actions today can make a world of difference tomorrow.

Because at the end of the day—scratch that, in the long run—your creativity deserves to thrive, and so do you.

Mitch Jackson | links