THE SUNLIGHT TAX BLOG:
Tax and Money Education for Creative People, Freelancers and Solopreneurs
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Do I Need an LLC?
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Do I Need an LLC?
One of the top questions I get asked in my one to one consultations as a tax accountant for creative entrepreneurs is: Do I need an LLC?
Today, I’m diving into LLC’s and explaining from an accounting perspective the details of why entrepreneurs might consider changing their business status to an LLC and the benefits that come along with it.
Join me in this episode to learn more about LLC’s and why having one doesn’t define your business status.
LISTEN & SUBSCRIBE HERE
One of the top questions I get asked in my one to one consultations as a tax accountant for creative entrepreneurs is: Do I need an LLC?
Today, I’m diving into LLC’s and explaining from an accounting perspective the details of why entrepreneurs might consider changing their business status to an LLC and the benefits that come along with it.
Join me in this episode to learn more about LLC’s and why having one doesn’t define your business status.
Also mentioned in today’s episode:
Single member and multi member LLC’s 3:17
What is an LLC and what does it do 12:13
Liability protection 14:50
The importance of having a separate business bank account 20:46
The next steps to take after having an LLC 23:08
If you enjoyed this episode, please rate, review and share it!
Links:
To sign up for the free live class, Understand Your Taxes and Make Money, register here: https://go.sunlighttax.com/free
The Home Office Deduction
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The Home Office Deduction
Today, I’m explaining the home office deduction including how you can calculate your own home office deduction when you’re filing your taxes as a creative entrepreneur this upcoming tax season.
Join me in this informative episode to learn a simplified way of calculating this important deduction and how you can make sure you’re getting the most out of it this tax season.
LISTEN & SUBSCRIBE HERE
Today, I’m explaining the home office deduction including how you can calculate your own home office deduction when you’re filing your taxes as a creative entrepreneur this upcoming tax season.
Join me in this informative episode to learn a simplified way of calculating this important deduction and how you can make sure you’re getting the most out of it this tax season.
Also mentioned in today’s episode:
What is a home office? 1:51
Calculating the home office deduction 7:16
Your deductible home office expenses 8:56
Personal vs. business time and how to calculate it 14:00
Calculating mileage when you have a home studio 16:30
If you enjoyed this episode, please rate, review and share it!
Links:
Get your FREE Visual Guide to Tax Deductions
How to Fund Your IRA: Pay Yourself First
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How to Fund Your IRA: Pay Yourself First
In today's episode, I’m talking about a very important topic: how to pay yourself first as a creative entrepreneur and how you can grow your stash of fuck you money.
Join me today, to hear the important steps you can take to make sure that you set yourself up for financial security and why it’s never too late to start contributing to your IRA.
LISTEN & SUBSCRIBE HERE
In today's episode, I’m talking about a very important topic: how to pay yourself first as a creative entrepreneur and how you can grow your stash of fuck you money.
Join me today, to hear the important steps you can take to make sure that you set yourself up for financial security and why it’s never too late to start contributing to your IRA.
Also mentioned in today’s episode:
Why you should set apart the full amount of money you want to use to fund your IRA first 9:25
Paying yourself first and how to do it 11:34
Why financial security is so important 13:22
Is it ok to start funding your IRA later in life? 15:27
Understanding your taxes 26:15
If you enjoyed this episode, please rate, review and share it!
Links:
https://www.sunlighttax.com/deductionsguide
When Do You Actually Need an Accountant?
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When Do You Actually Need an Accountant?
Are you a creative entrepreneur who’s been wondering when you should hire an accountant or if you’ll be able to just do your own taxes?
In today's episode, I’m breaking down some of the most common scenarios that you might want to consider actually hiring an accountant and when you can just do your own taxes as an entrepreneur.
Join me in this informative episode to learn the best times to consult an expert and why using an accountant might save you money in the long run.
LISTEN & SUBSCRIBE HERE
Are you a creative entrepreneur who’s been wondering when you should hire an accountant or if you’ll be able to just do your own taxes?
In today's episode, I’m breaking down some of the most common scenarios that you might want to consider actually hiring an accountant and when you can just do your own taxes as an entrepreneur.
Join me in this informative episode to learn the best times to consult an expert and why using an accountant might save you money in the long run.
Also mentioned in today’s episode:
When it’s a good time to consult an accountant 5:33
Why it’s not as expensive as you think to hire an accountant 8:30
Tax returns and what you’re paying for 11:00
Tax planning and strategy and why it’s important to consult an accountant 21:15
Understanding your taxes 26:15
If you enjoyed this episode, please rate, review and share it!
Links:
https://www.sunlighttax.com/deductionsguide
These Are The Money Moves You Should Make Right Now, According to Finance Pros
2023 resolution: Get your finances right.
On the heels of the Great Resignation and the ongoing cost of living crisis, the current financial climate feels like a minefield. Predictions of slow economic growth in the U.S. and a looming global recession might, understandably, make you cautious to make big moves to fund your retirement, invest in the market, or even buy your forever home.
Because personal finance is never one-size-fits-all, we spoke to six experts to ask their must-do advice to start 2023 off with solid financial footing. Their perspectives range across savings, investing, retirement, and even tax planning, but each provides insight into the ways that keeping it simple in the short term can have long-term benefits.
2023 resolution: Get your finances right.
By Nafeesah Allen, Ph.D. | Updated on February 13, 2023
On the heels of the Great Resignation and the ongoing cost of living crisis, the current financial climate feels like a minefield. Predictions of slow economic growth in the U.S. and a looming global recession might, understandably, make you cautious to make big moves to fund your retirement, invest in the market, or even buy your forever home.
Because personal finance is never one-size-fits-all, we spoke to six experts to ask their must-do advice to start 2023 off with solid financial footing. Their perspectives range across savings, investing, retirement, and even tax planning, but each provides insight into the ways that keeping it simple in the short term can have long-term benefits.
Don’t wait until April 18 to start prepping your taxes.
“Mark April 18 on your calendar, because three different chunks of money all come due on the same day,” says Hannah Cole, a tax expert and agent at Sunlight Tax. “A little advanced warning helps you budget for it so that you don't end up messing up your personal finances.”
The first two months of the year are a good time to start reviewing your tax responsibilities and setting aside funds to make good on them by the April 18 due date. On that date, you’re on the hook to pay taxes on income earned for the prior calendar year, first quarter estimates for the current year (for self-employed people), and contributions to your individual retirement account. It's important to note that even if you get an extension to file your taxes, that only means you get extra time for your paperwork, Cole explains, but your bill is still due on April 18.
“Whether or not you actually owe quarterly taxes might depend on how much of your income is from your self-employment," Cole says. "So, if you're in the world of side hustlers, where you have a day job and most of your income is on a W2 as an employee, then you might not need to pay quarterly taxes.” However, April 18 should still be an important date to you, because it's the deadline to put money into your retirement account and reap associated tax advantages from a 401(k), IRA, or Roth IRA.
RELATED: How to Save for Retirement—No Matter Your Current Finances
Cole says she's seen plenty of people run into issues because they weren't aware, or didn't plan for, all of these deadlines converging on the same date. "They'll end up with good intentions to fully fund their retirement," she says, "But then they see that tax bill from the IRS and then they're like, ‘Oh, shoot the quarterly payment. I forgot about that too,’ which is additional.” Before you know it, your cash is gone.
So, start the planning process early (read: right now) and save up for the inevitable. April 18 isn’t the start of tax season—it should be close to the end.
RELATED: How Do My Investments Impact the Way I File My Taxes? Find Out on the Money Confidential Podcast
This article first appeared on Real Simple on February 13, 2023
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