‍More than 1.5 million people create content on OnlyFans for an audience of more than 150 million, according to the company’s own statistics. Collectively, OnlyFans creators have earned more than $5 billion—selling content is big business.

But OnlyFans and the wider creator economy propels ordinary people into the world of business so quickly that it can often be a struggle to efficiently (and legally) manage finances. Taxation is an issue we’ve covered before—but for OnlyFans creators, things can often be very different.

Chris Whalen, CPA, is an accountant and the author of an Amazon bestseller on how to run a Sugar Baby or OnlyFans business. Whalen has been involved in computers and the internet since the 1970s, when he bought his first kit computer. He got a vendor license from IBM to sell early PCs in the 1980s, and graduated from his accounting course in the late 1980s. In the 1990s, he began working on the accounts of the early internet creators.

Today, he optimizes taxes for thousands of OnlyFans creators. 

I‍ asked him what he’s learned from managing the finances of some of the most successful adult content creators, and what advice he has for emerging creators faced with increasing revenue and the inevitable financial complications that come with it. 

Don’t worry if you have no idea what you’re doing

That’s what accountants are for. “A lot of OnlyFans creators are younger people,” says Whalen. “They have no idea that they need to file a tax return. There's people who call me and say: ‘I’ve been doing OnlyFans for four years, I had no idea I was getting a 1099 for this.’” They then worry that they owe back taxes, which is why Whalen recommends getting an accountant to help rather than try to figure it out on your own.

‍Make sure you pick the right accountant

“I never ask for their OnlyFans content creator name because that'd be inappropriate," Whalen says. He warns creators that they have to be careful in the world of creator accounting. If someone gives you the creeps or makes you feel uncomfortable, move on. “There are some sketchy professionals who when they see a nice, beautiful young lady who's in need and they think that she's in the adult industry, you can imagine some of the stories I've heard.” Others may be squeamish about representing OnlyFans creators.

“Many accounting firms refuse to do work for someone engaging in something they deem immoral, inappropriate and contrary to their political ideologies, although it is fully legal,” he says. Asking companies whether they’ve heard of OnlyFans, whether they’re comfortable doing it, and whether they manage accounts for other online creators is important. 

‍Decide how to set up your business

An initial conversation with a tax planner should involve determining how much you earn from your OnlyFans business, and the optimal way to set up your tax affairs based on that figure. Setting up as an S-corp in the United States allows people who are eligible to save money on taxes by taking cash out of their company through dividends rather than through direct payments, advises Whalen. (Your accountant can help explain how that works, and why it’s beneficial.)

‍Hold money back to pay taxes

“It’s quite often a sticker shock” being a self-employed creator, cautions Whalen, because generally people are used to working jobs where tax and Social Security contributions are taken off at source. When self-employed creators realize that’s not the case for them, it can have an impact on their finances. “This is a double whammy for a lot of these OnlyFans content creators,” he says. “A lot of them are in college, so they haven't really had any earned income. If they have, they likely have never filed a tax return before, or their parents have filed it for them.” An accountant can take your bank statements and help file your taxes on your behalf, saving you the time and effort of figuring it out—or getting it wrong.  

‍Look at your expenses ‍

“One of the first things to look at is What can I deduct?,” says Whalen. “The main way to reduce taxes is to take appropriate expenses.” He sends out an email to all his new clients explaining the types of things that can be classed as business expenses—not everything you watch on TikTok from get rich quick hustlers is legitimate business advice—and how to reduce your tax bill by deducting those expenses from your gross income. There are specific expense categories for entertainers—an umbrella which OnlyFans creators come under—some of the things you can charge for are surprising. It could include dry cleaning for any clothes you wear while creating content, beauty supplies, plastic surgery and what the tax authorities define as “props.” (We’ll leave it to you to decipher that.)

‍Think smart about the long term‍

Transparency on your tax return is important, but the reality is that the societal stigma of being connected to OnlyFans could affect your financial standing in the future—when shopping for a car or a home, for example. “We have to be careful about how we portray this income on their tax return,” says Whalen.

He advises using the simpler, and no less true, "content creator" or "influencer" instead, so that a lender doesn’t pass judgment and eliminate you as a loan candidate.

‍“We’re looking to make sure we report correctly and we report 100% of the current income and expenses," Whalen says. "But if we can put something down that doesn’t openly say that they’re an online adult content creator, that’s just good advice.” It means that even if the perception of society towards OnlyFans creators doesn’t move as quickly as we’d hope, you’re not lumbered with any stigma associated with such work.