Phase 1
Legal Identity & Structure
Week 1
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Apply for an EIN (Employer Identification Number)
Free at IRS.gov — takes 5 minutes online. You need this to open a business bank account and file taxes. Even sole props should get one.
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Decide: Sole Proprietorship or LLC?
Use our LLC vs. Sole Prop guide to decide. If forming an LLC: NY costs ~$1,450–$2,350 first year. MA costs ~$500. Consider when income is consistent at $40K+.
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Register a DBA ("Doing Business As") if needed
If operating under a brand name different from your legal name (e.g., "The Beauty Edit by Jane"), register the DBA with your county clerk.
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File Articles of Organization (LLC only)
NY: File with the NY Department of State at dos.ny.gov ($200). Includes mandatory newspaper publication ($1,200+). MA: File at corp.sec.state.ma.us ($500).
Phase 2
Financial Foundation
Week 1–2
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Open a dedicated business bank account
Keep ALL business income and expenses separate from personal accounts. Recommended: Chase Business Complete, Mercury (free), or Relay. Never mix personal and business money.
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Get a business credit or debit card
Use exclusively for business expenses. Makes expense tracking automatic and simplifies month-end reconciliation.
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Set up bookkeeping software
QuickBooks Self-Employed (~$15/mo), Wave (free), or FreshBooks. Connect your bank account for automatic transaction import. Don't use a spreadsheet long-term.
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Open a separate savings account for taxes
Call it "Tax Savings 2025." Transfer 35–40% of every payment received into this account immediately. Do not touch it. Pay estimated taxes from here.
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Set up an invoicing system
HoneyBook, Wave, or Bonsai for professional invoices. Include payment terms (Net 15 or Net 30), your EIN, and a late fee clause. Always invoice for brand deals.
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Set your tax set-aside rate
NYC creators: 40% of every payment. NY non-NYC: 35%. MA creators: 32%. Set this up as an automatic transfer rule in your banking app.
Phase 3
Tax Setup
Week 2–3
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Understand self-employment tax (15.3%)
As a self-employed creator, you pay both the employee and employer halves of FICA. This is in addition to income tax. Factor this into your rate-setting for brand deals.
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Mark quarterly estimated tax due dates on your calendar
April 15 | June 16 | September 15 | January 15. Set phone reminders 2 weeks before each date. Missing these triggers IRS underpayment penalties.
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Create accounts for paying estimated taxes online
Federal: IRS Direct Pay at irs.gov/payments. NY State: nystax.gov. MA: MassTaxConnect. Set these up before your first payment is due.
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Find a CPA or bookkeeper who works with creators
Especially important in your first year. A good creator-focused CPA typically saves you more in taxes than they cost. Ask about their experience with 1099 income and NYC taxes.
Phase 4
Legal Protection
Week 3–4
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Get a basic brand deal contract template
Never work on a handshake. A contract should include: deliverables, deadlines, payment amount, payment terms, usage rights, exclusivity terms, and revision limits.
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Set up a W-9 template (ready to send to brands)
Brands will ask for your W-9 before paying you. Fill it out with your legal name (or LLC name) and EIN. Keep a PDF copy to email instantly.
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Consider business liability insurance
General liability insurance for creators costs $30–$80/month. Protects against injury claims at shoots, copyright infringement claims, and property damage. More important once earning over $50K.
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Register trademarks for your brand name (if needed)
If your creator name or brand is your business, consider a trademark application (USPTO). Especially important once you have merchandise or licensing deals.
Phase 5
Growth & Benefits
Month 2–6
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Get self-employed health insurance
No employer plan anymore. Explore: Healthcare.gov marketplace, professional association plans, or spouse's plan. Premiums are 100% tax-deductible as a self-employed person.
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Open a retirement account (SEP-IRA or Solo 401k)
The best tax shelter for creators. SEP-IRA: contribute up to 25% of net SE income. Solo 401k: contribute up to $23,500 as employee + employer match. Both reduce taxable income.
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Review S-Corp election eligibility
Once consistently netting $80K+ per year, electing S-Corp status for your LLC can save $5,000–$15,000+ per year in SE taxes. Discuss timing with your CPA.
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Set a minimum rate card for brand deals
Factor in: self-employment taxes (~15%), income taxes (~22%), expenses (~10–15%), and your desired profit. A $3,000 deal may net you $1,500 after taxes and expenses.
⚡ Your 30-Day Business Launch Timeline
Week 1
Legal Setup
Get EIN
LLC decision
DBA if needed
LLC decision
DBA if needed
Week 2
Financial
Business bank account
Tax savings account
Bookkeeping software
Tax savings account
Bookkeeping software
Week 3
Tax Ready
Calendar due dates
IRS Direct Pay account
Find a CPA
IRS Direct Pay account
Find a CPA
Week 4
Legal Docs
Contract template
W-9 ready
Invoicing system
W-9 ready
Invoicing system
Month 2+
Scale Up
Health insurance
Retirement account
Review rate card
Retirement account
Review rate card