Starting a company gives you legal liability protection and distinguishes between the business’s finances and your personal finances. The world is full of jerks who are willing to lie and cheat the system (shocking, I know). It was a false claim from a competitor looking to knock my book off the shelf. Vocabulary time: LLC stands for Limited Liability Company.Īsk me about my own experience getting sued. If you don’t have a company and your book, product, or service gets sued, then your personal finances and a public record will be absolute fair game. There are some cases of copyright infringement though, where the author would be held liable for their actions, but in total there is much more protection for such things. If someone sues you for writing-related reasons and you have an LLC, they cannot attack your personal assets - only the company’s assets. Starting your own publishing company gives you a certain level of liability protection. The benefits of establishing a publishing company allow you to see this business as an opportunity to build wealth and plan for retirement. Saving money on taxes isn’t just about short-term gain. The most common tax-deductible business expenses: During the year, an accountant can help you make the best choice in certain situations to take full advantage of the tax code. If you have your own company, I recommend getting a tax accountant (the fee for whom is a tax-deductible expense) to help prepare your taxes. All those business write-offs may save you a lot of money during tax season. When April 15th approaches, you can write off a surprising number of business expenses.Ī company helps you differentiate between your personal income and business income. Yes, there are tax benefits to having your own book publishing company. Tax Benefits, Write-Offs, & Wealth Building But I’ll just take you through the main benefits, then along to the step-by-step process. Of course, I could go on and on about the benefits - like being your own boss. There are 6 excellent benefits to starting your own publishing company: Benefits of Starting Your Own Publishing Company How do publishing companies make money? Publishing companies make money by taking in book sales, minus the royalties they pay out to authors and other artists. Facilitates future opportunities to publish books by other authors.Establishes a legal entity to contract co-writing and licensing properly.Fulfills your dream of being The Boss/CEO/Founder of your own publishing company.Shifts your mindset from a hobby writer to a business owner.Gives you access to more than one Amazon KDP account.Protects yourself, your work, and your personal assets in case of a lawsuit.Here’s a more detailed list of reasons you may want to establish your own publishing business: However, starting a publishing company has several advantages. With today’s publishing platforms, you don’t have to start a publishing business to publish your own work or even other people’s stories. But if you do establish an LLC, you are protected and legitimate. For example, if you want to publish other people’s books, you can do that without an LLC. Of course, there are many reasons to start a publishing company, but these are the big three. There are 3 primary reasons to start a publishing company: Many of the steps and recommendations below will be relevant to your startup, no matter which country you’re in. Each country will have its own laws for setting up such things. Some of the paperwork and legal steps listed in this article are pertinent to the US only.This article does not constitute legal advice and should not substitute for the advice of an attorney. If you have any questions, it is best to seek legal advice before moving on. Although I have a lot of experience setting up LLCs, including my own book publishing company, I am by no means a lawyer or CPA and cannot speak on their behalf.Thankfully, this step-by-step guide will help you determine if you should start a publishing company and show you how to achieve such a daunting task. Starting your own book publishing company is a crucial step in boosting your author brand, selling other people's books, or protecting yourself and your assets.įor many people, establishing your own company can be confusing, tedious, and downright painful. The publishing company decides what kind of marketing (and where to advertise) will best help sell their books. And don’t forget to check out my podcast where I spoke with my lawyer about publishing business structure.Ī publishing company sells and distributes books (and magazines, newspapers, digital content, etc.) They may contribute to the editing process to ensure their published content is up to snuff.Resources For Setting Up a Publishing Company.Setting up a Publishing Company with M圜ompanyWorks.6 Steps for Starting a Book Publishing Company.When should you start a publishing company?.Benefits of Starting Your Own Publishing Company.
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