3 Game-Changing Tax Hacks for PYOP Studio Owners Revealed

If you own a paint-your-own-pottery studio, you already know the business is basically:

🎨 30% creativity
🧁 30% birthday parties
😅 20% “where did that glaze go?”
💸 20% “WHY ARE MY TAXES SO HIGH?”

And if you’ve ever looked at your tax bill and thought,
“Wait… I made HOW much and I owe WHAT?”
…this post is for you.

Because here’s the truth:

Most creative entrepreneurs think tax planning is a one-size-fits-all game.

But for studios? That couldn’t be more wrong.

A PYOP studio isn’t a regular small business.
You’re not a coffee shop.
You’re not a salon.
You’re definitely not a “simple service provider.”

You’re a weird, wonderful hybrid of:

• retail store
• event business
• experience-based service
• and mini art school
  …all under one roof.

And the IRS?
The IRS doesn’t reward “we’re kind of everything.”

It rewards structure.
It rewards tracking.
It rewards strategy.

Meaning: if you’re treating taxes like a once-a-year filing activity…

You’re probably leaving money on the table.

A lot of it.

Tax Hack #1: Your income isn’t “income”… it’s a multi-stream beast

Here’s the first game-changer:

Your studio income structure is complex, and that complexity can actually help you.

Because you’re not just earning money from painting sessions.

You’re earning money from:

• class fees
• merchandise sales
• party bookings
• retail product lines
• memberships
• add-ons
• private events
• gift cards
• workshops
  …and sometimes someone just Venmo’s you “for the vibes.”

That means your revenue isn’t one bucket.

And when you treat it like one bucket, you miss out on:

✅ better categorization
✅ smarter deductions
✅ clearer profitability by stream
✅ and tax planning opportunities that most CPAs don’t even look for

In the full article, we show you exactly how to break your income down strategically… without making your books feel like a punishment.

Tax Hack #2: Your entity structure is a tax lever (not paperwork)

This one is where studio owners get absolutely cooked.

Most studios start as a sole proprietorship or basic LLC because it’s easy.

But as you scale… that structure can quietly become expensive.

Because the wrong entity structure can mean:

💸 unnecessary self-employment tax
💸 higher overall tax burden
💸 less ability to plan strategically
💸 missed opportunities for retirement planning

For many studio owners, an S-corp election can reduce self-employment taxes.

And for others, a smart LLC structure creates legal protection and allows for multi-entity strategies when your studio becomes more complex.

The difference between “I picked what felt easiest” and “I chose what saves me money” can literally be thousands of dollars every year.

And yes… we’ve seen it happen.

Tax Hack #3: Specialized expense tracking is where the real money is hiding

This is the part that makes me want to gently shake studio owners (with love).

Because you are buying things that most businesses don’t buy:

• bisque inventory
• paint & glaze
• kiln equipment
• shelving
• party supplies
• packaging
• studio tools
• retail inventory
• classroom supplies
• marketing for events
  …and probably 400 tiny brushes that disappear like socks in a dryer.

Here’s the problem:

Most CPAs don’t understand the nuanced categories of studio expenses.

They don’t know the difference between:
✅ purchases for resale
✅ inventory supplies
✅ consumables
✅ studio equipment depreciation
✅ event-specific expenses
✅ and operational overhead

So if your expense tracking isn’t granular and intentional…

You’re either:

1. missing deductions
2. miscategorizing purchases
3. messing up inventory tracking
4. or making your financials too blurry to plan with

And when your books are blurry?

So is your tax strategy.

The studios that scale fastest treat tax planning like a system

Not a yearly chore.

Not something you handle after the fact.

A system. A strategy. A tool for growth.

That’s what we do at PYOP Accounting.

We help studio owners, women-owned businesses, and creative entrepreneurs build a real studio business that supports:

✅ legitimate income
✅ retirement planning
✅ profitability
✅ freedom
✅ and a life that isn’t chained to the front counter

Because life is too short for low returns on big energy.

And your business’s job is to support you… as you support it.

Connect with us!

Please follow us on Facebook and Instagram. Please make sure to check out our blog and our website link below. Subscribe to our YouTube channel and hit the bell to be notified when we post. You can email me at donna@pyopaccounting.com.

Donna Bordeaux, CPA with PYOPAccounting.com

Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.