Off The Grid: Leaving Social Media đŚ Answering Your Biggest Tax Questions â with Hannah Cole of Sunlight Tax
Apr 10, 2026
Hannah Cole, tax educator and founder of Sunlight Tax who helps self-employed creatives, joins to answer practical business tax questions. She explains when an LLC matters and when SâCorp can help. Learn clear rules for quarterly estimated payments, whether to use QuickBooks, fixing back taxes, and what creative expenses are commonly deductible.
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Wait To Elect SâCorp Until Profits Are Consistent
- Consider SâCorp election only after consistent net profit, not revenue; Hannah suggests running numbers once you have about $60,000 in profit.
- SâCorp adds payroll, a second tax return, and state rules can erase benefits, so weigh fees and state taxes first.
Use Safe Harbor Rules For Quarterly Taxes
- Use safe harbor rules to avoid underpayment penalties: pay 100% of last year's tax or estimate and pay 90% of this year's tax.
- The 100% rule is the simpler cheat code; the 90% rule requires upâtoâdate bookkeeping each quarter.
Choose Bookkeeping That Fits Your Workflow
- You don't have to use QuickBooks; pick bookkeeping you understand and that offers automated bank feeds or use a spreadsheet if not.
- Hannah uses a spreadsheet for her art practice and Xero for her larger business with payroll.
