Episode 12: Setting Up a Book Publishing Company

setting up book publishing company clint coon
                                          

 

Some things you want to consider when setting up a publishing company as a business entity are your tax incentives and how much you want to protect your personal assets, such as royalties and copyright.

While there are tax incentives, they depend on factors like how much you make and where you are located, as well as what type of company you create. It’s important to consider this information before deciding to create a publishing company.

As an author, you should start thinking about setting up a business when you begin collecting around $1,000 or more per month in the U.S.

One reason for this is so that it’s not all subject to employment taxes for you, as an individual. Forming an LLC, taxed as an S-corp or C-corp, depends on your income and these would be good options to discuss with a lawyer or CPA.

When it comes to copyright, having that under a different LLC than where royalties are held will separate your cash in the event someone asserts a claim against whoever owns the copyright. Having the copyright under an LCC, separate from your personal assets also protects it in the event you are personally sued.

If you reside outside the U.S., though, any distributor that's going to pay you royalties is going to withhold 30 percent. The key to mitigating this is establishing a domicile in the U.S. by doing it with a business entity. Coons suggests using Wyoming for his international clients set up an LLC in because it’s relatively inexpensive to do so in that state.

Bio of the Author in the Case Study:

clint coons setting up book publishing companyClint Coons is a founding partner of Anderson Law Group and current manager of Anderson’s Tacoma office. Mr. Coons’ book, Asset Protection for Real Estate Investors, has brought him national recognition as an expert in protection and tax planning for real estate investors.

His practice involves the structuring of land trusts, limited liability companies, and other business forms to shield investors from the myriad of challenges facing them in the new economy.

 

Resources Referred to in this Episode:

 

15 Comments

  1. John Johnson on June 24, 2020 at 1:05 pm

    I really appreciate your wisdom…May God to continue to bless you on all levels.

    • Dave Chesson on June 24, 2020 at 2:16 pm

      Thank you and glad you’re liking it.

  2. Andy CR on June 12, 2019 at 10:45 am

    Hi Dave, please tell me where I can find on your site an article for beginner self-publishers?

    • Dave Chesson on June 18, 2019 at 1:04 pm

      The “Start Here” button at the top of the website.

  3. Arun Sarathy on February 11, 2018 at 4:03 am

    Impressive !! This is really an awesome sauce, Dave ! You are giving away a lot of valuable content for free. thank you, God bless!

    • Dave Chesson on February 11, 2018 at 9:38 pm

      Thanks Arun! That means a lot to hear.

  4. Jill Kirby on January 21, 2018 at 9:39 pm

    Hi Dave,
    Is there a full transcript of this podcast? There were some great points made here!

    • Dave Chesson on January 22, 2018 at 5:01 pm

      Hi Jill! No, sorry. But yeah, this was definitely a good one – I was taking notes as well since Michael is one f the biggest in that industry. So getting his info free 🙂 was awesome.

    • Arun Sarathy on February 18, 2018 at 10:41 am

      Hi , I found this podcast episode so useful that I went ahead and transcribed it for the benefit of all of us. Initially I just took notes, but then I thought it best to have it written completely to share with @davechesson `s tribe. It was quite a task, I admit, as the conversation was done over a phone (I hope I have covered everything there), but here it is, ready to download for our reference.The PDF (125KB) can be downloaded from here: https://drive.google.com/fi

  5. Jill Kirby on January 21, 2018 at 9:39 pm

    Hi Dave,
    Is there a full transcript of this podcast? There were some great points made here!

    • Dave Chesson on January 22, 2018 at 5:01 pm

      Hi Jill! No, sorry. But yeah, this was definitely a good one – I was taking notes as well since Michael is one f the biggest in that industry. So getting his info free 🙂 was awesome.

  6. Kevin Partner on January 21, 2018 at 3:26 pm

    Interesting as always. Worth bearing in mind for UK authors that we can set up a LTD company in the UK and, because the UK has a tax treaty with the US, pay zero withholding tax.

    • Dave Chesson on January 21, 2018 at 6:34 pm

      Great point Kevin! Yeah, each country has a different situation and in many cases It is best to do this, and in some cases, not so.

  7. Kevin Partner on January 21, 2018 at 3:26 pm

    Interesting as always. Worth bearing in mind for UK authors that we can set up a LTD company in the UK and, because the UK has a tax treaty with the US, pay zero withholding tax.

    • Dave Chesson on January 21, 2018 at 6:34 pm

      Great point Kevin! Yeah, each country has a different situation and in many cases it’s best to do this, and in some cases, not so.

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