For those of you who don’t know, I wrote a book. Actually, two. Fiction books. Edgy, passionate reads––or so I’ve been told.
Anyway, a few weeks back, a few newer authors were discussing the need to form an LLC or not when self-publishing, and I tried to explain the merits of doing so.
And then I thought, why not go to the expert?
I asked Nellie Akalp, CEO & Founder of CorpNet.Com to give us her opinion on the matter.
Without any further digression on my part…Here you go!
Should I form an LLC for my writing business?
You may have heard about other writers who form an LLC (Limited Liability Company) before publishing. There are two main reasons for doing so. First, being an LLC can protect your personal assets in some situations. Most freelance writers don’t accumulate much business debt, but if you do self-publish and accumulate large debts for your writing business, an LLC can help separate your personal assets from your business debt. This business structure can also be useful if someone should sue your writing business (although keep in mind, as a writer you can still be sued personally for copyright infringement or defamation).
The second advantage of the LLC is related to your taxes. Forming an LLC and electing what’s called S Corporation status can lower what you pay in self-employment taxes (in some cases), and these structures can give you more flexibility for writing off benefits like retirement contributions, education, disability, etc. You may want to check with a tax advisor to see exactly how an LLC can benefit your situation.
Setting up an LLC is much easier than forming a Corporation. Contact us at firstname.lastname@example.org or call direct at 1.888.281.7111 ext. 105 and ask to speak with Amanda Beren, our business startup expert.
There you have it.
If you ask me, self-publishing is an amazing adventure, but not one to take lightly. Be Serious. It is not a hobby.