Financial Planning for Adult Content Creators: Nate Mallory’s Must-Know Tips on Taxes, Estate Planning, & More

SWCEO Interviews Nate Mallory

Blog Post Written By: MelRose Michaels

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When your income spikes before your savings account does, it’s time to get serious about financial planning—especially in a career that doesn’t come with a 401(k). For adult content creators, navigating money moves, taxes, and retirement can feel overwhelming, if not impossible. But it doesn’t have to be.

In a recent Twitter Space conversation, MelRose Michaels sits down with accredited financial counselor, financial therapist, and tax attorney Nate Mallory of Only Tax Deductions to break down exactly how creators can retire rich—not burnt out.

MelRose Michaels: Nate isn't just a tax guy. He holds two Masters of Laws degrees in wealth management and taxation, and works exclusively with adult industry professionals. Whether you're wondering what to do instead of a 401k, how to plan for retirement, or how to protect your income and content long-term, Nate has answers.

Welcome to the show, Nate! Let’s kick things off with some background. Can you introduce yourself and share how you found your way into working with adult creators?

Nate Mallory: Thanks so much for having me. I’m Nate Mallory, owner of Only Tax Deductions law firm. We specialize in helping content creators and business owners in the adult industry. I earned my law degree from Texas A&M and hold master’s degrees in both wealth management and taxation. I’m also a certified financial therapist and an accredited financial counselor.

I started this firm because there was a major lack of professional services and education in our space. I saw creators unsure of how to manage their businesses, plan for taxes, or think about retirement. We take a holistic approach—not just logic and numbers, but also looking at the emotions, fears, and biases people carry around money. Our goal is to help clients get where they want to be, whether that’s retiring early or building a specific lifestyle.

MelRose Michaels: Yes, I love that. I’ve been open with our community about the tax mess I found myself in early on. A lot of creators have no idea how being a 1099 contractor impacts them, or what they should be saving. We've covered those basics before, but what makes your approach unique is your focus on strategy and long-term planning. What should creators really be thinking about when it comes to building wealth?

Nate Mallory: There are two big things. First, creators are almost always self-employed. There's no pension, no employer 401k. They’re on their own for saving for retirement. Second, the length of a creator’s career is often unknown. I compare it more to professional athletes than W2 employees. The income potential is amazing—but the earning window can be shorter due to trends, platform changes, or burnout.

So creators need a long-term vision: Where do you want to be? How long can you realistically earn what you’re making now? That will guide how much you need to set aside.

MelRose Michaels: A lot of creators hear advice like “save 20–30% for taxes,” but when it comes to long-term wealth, what should they be saving? Is there a percentage or type of account they should be using?

Nate Mallory: I wish there were a magic number, but everyone's goals and expenses are different. One general rule is to aim for 25 times your annual expenses to retire comfortably. So if you spend $100,000 a year, you’d want $2.5 million saved. That aligns with the “4% safe withdrawal rate,” meaning you could pull out 4% per year without depleting your savings.

There are great calculators online, and when we work with clients, we provide projections to personalize their targets. Ultimately, it depends on the lifestyle you want. Someone living in a cabin in Oklahoma might need $20k a year. Someone else might want to travel the world. You need to understand both your current and future lifestyle needs.

MelRose Michaels: When someone comes to your firm, what does that process look like? What’s the first thing you do with them?

Nate Mallory: We start by understanding the client and their business. What do they do? What’s their financial picture—assets, debts, goals? We look at their savings, investments, property, and liabilities like credit cards or loans. Then we get into the emotional side—what's their relationship with money? Are they afraid of not having enough? Were they never taught how to budget?

Once we understand where they are and what they want, we can build a plan to get there. It’s part therapy, part strategy.

MelRose Michaels: Right now, it’s April 1, so taxes are top of mind. What should creators be double-checking before the April 15 deadline?

Nate Mallory: Make sure you have all your documents ready: 1099s, W2s, mortgage and property tax statements. The most important thing is a Profit & Loss Report—or P&L. It shows income and expenses, broken into categories like travel, subscriptions, and supplies. It’s what tax pros use to properly deduct your expenses.

If you’re using a professional or doing your taxes yourself, a P&L is essential to getting everything right.

MelRose Michaels: And for creators who are running late, what are their options?

Nate Mallory: File an extension before April 15. That gives you until October 15, but it only delays penalties—not interest on money owed. So, if you think you owe taxes, it’s better to file sooner.

Also, you can amend your return later. So if you’re waiting on a 1099, you can file now and correct it later. That way, you’re still in compliance.

MelRose Michaels: Switching gears—many creators ask me when they should form an LLC or S Corp. What are the milestones for incorporating?

Nate Mallory: When you’re starting out and haven’t formed anything, you’re a sole proprietor by default. Forming an LLC adds legitimacy with clients and the IRS, and it protects you legally. That’s helpful if you're claiming deductions while not yet making much profit—the IRS uses a "Hobby Loss Rule" to deny deductions if your business doesn’t look legitimate.

LLCs also protect personal assets. If someone sues you, your house, car, and savings can be shielded. It’s relatively inexpensive—many states charge $100–$300 to form one, though states like California are pricier. Just be careful with cheap filing services; we’ve seen clients who thought they formed an LLC but accidentally created a partnership, which causes tax filing issues.

MelRose Michaels: What’s the difference between what your law firm offers vs. what a regular accountant provides?

Nate Mallory: We do tax prep, bookkeeping, and payroll like an accountant would. But we also draft contracts and NDAs, handle disputes, and provide legal mediation. Plus, as a law firm, we offer attorney-client privilege. That means you can tell us anything—even if it's legally gray—and we’re bound to confidentiality.

Because our clients can be fully transparent, we can build the most accurate and personalized financial and legal plans.

MelRose Michaels: That makes a lot of sense. What about hiring? Since you work with adult creators, how do you vet team members to ensure they’re not judgmental or carrying bias?

Nate Mallory: That’s one of the hardest parts. We look for qualifications, but also for emotional intelligence and respect for our clients’ work. I want people who understand the unique relationship we have with clients. We’re involved in their lives and businesses far beyond tax season, offering advice on everything from brand deals to legal risks.

So I spend a lot of time getting to know new hires and making sure they’re aligned with our values.

MelRose Michaels: Have you worked with creators to actually build wealth? Can you share some success stories?

Nate Mallory: Yes, and honestly, just getting started is half the battle. Time and compound interest are powerful tools. We’ve helped clients set up Roth IRAs and SEP IRAs. Others have invested in rental properties for passive income—we help them create LLCs to protect those investments. Some shift from making money only on cam to building recurring revenue with subscriptions or content sales.

It’s about creating multiple streams of income so you’re not dependent on one platform or type of work.

MelRose Michaels: That’s so important. I’ve been thinking about estate planning a lot lately. What does that even look like for adult creators?

Nate Mallory: Estate planning is having a will or trust to decide what happens if you pass away or become incapacitated. It ensures your money, content, or property goes where you want—not where the state decides.

Without a plan, everything goes to probate. That’s time-consuming and expensive, and the state decides who inherits. It’s also worth setting up a business continuity plan—if something happens to you, who keeps your business going? Even a short-term illness can derail everything if there’s no plan.

MelRose Michaels: That’s huge. I learned the hard way how important planning is when I got hit with a surprise tax bill my first year. I was too scared to open the IRS letters. My mom told me, “Open them, face it, and make a plan.” That advice changed everything for me.

Can you plug where people can find you and your services?

Nate Mallory: Yes! You can find us at OnlyTaxDeductions.com, on Instagram and X. We attend most major adult industry events—like XBIZ Miami and Exxxotica Chicago. When you become a client, you get my direct number and email. My goal is to be the person you can always reach out to for financial or legal help.

MelRose Michaels: Thank you so much, Nate. This was a masterclass. I hope every creator who listened now feels like they have a plan—or at least knows where to start.

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Some parts of the above interview have been condensed or edited for clarity. For the full interview, listen to the entire Twitter space.

Find the Only Tax Deductions on Twitter

P.S. If you liked this convo and want more real talk on money, taxes, and long-term planning for adult creators, head over to our YouTube channel. We’ve got interviews with industry-friendly experts breaking it all down in a way that actually makes sense. Go binge a few, your future self will thank you.

Disclaimer: The views and opinions expressed in the interview are those of the guest speaker and do not necessarily reflect the official policy or position of SexWorkCEO or MelRose Michaels. Anything said or written is of their opinion and is not intended to malign any religion, ethnic group, club, organization, company, individual, or anyone else.