How to Start a Book Publishing Company



Start your very own publishing company

“How do I start a publishing company?”

Something many self-publishing entrepreneurs ask at some point in their writing career.

Starting your own book publishing company is an important step to not only helping your book sales, but also protecting yourself in the process. However, for many, establishing your company can sound pretty tedious and over the top.

 

But starting a publishing company is no longer as arduous of a task as it used to be.

Back in the day, it would require you to do a lot of research, find particular paperwork for whatever state you were going to set it up in, and get legal representation to aid you through the process.

However, this crazy torment is no longer required thanks to online services — which we’ll get into later — that will help you every step of the way and do most of the work for you.

In this article, you will learn:

  • What benefits a LLC or publishing company can give you and your books
  • What version of a corporation you should choose
  • What you NEED to know before setting up a publishing company
  • How to start your own publishing company online

But before I can get into this process, I must first make a quick disclaimer: although I have a lot of experience in setting up LLCs, I am by no means a lawyer or CPA and cannot speak on their behalf.  If you have any questions, it is best to seek the legal advice of a professional before moving on.

And with that said, let’s begin!The exact process for anyone looking to setup a LLC for their Kindle publishing

Why would a self-publisher want to start their own Publishing Company?

To some, starting a company might sound like overkill…but that’s far from the truth.  The fact of the matter is, if you intend to publish a book or have already done so, there are 3 major reasons why you should publish it under your company and not yourself.

It Grants You Legal  and Financial Protection

If you don’t have a company, and your book, product or service gets sued, then your personal finances and public record will be at major risk.

Starting a company gives you legal protection and helps to distinguish between the business’s finances and your own personal finances. The courts, or collection agencies, could not come after you and could only come after your company’s assets.

Not that we’re going to do anything illegal, but it is nice to know that your personal assets are not at risk.

For publishing, this is very important because there has been a rise in copyright infringement and other accusations on the Kindle platform and other eBook sales sites.  In many cases, the claims are unfounded, but they are still very real.

Woo Hoo! Tax Advantages!

There are a lot of great tax advantages that come from starting your own publishing company.There is not time better than now to start your publishing company

First, it helps to differentiate between your personal income and the business income.

So say for example you and your family bring in $100,000 a year and your online business brings in another $100,000 a year.  If you did not set it up as a company, then your net income becomes $200,000 a year, which in some cases will put you in a different tax bracket.  Ouch!

However, if you start an LLC or corporation, then you get taxed based on your income, and the business gets taxed on its income.  If handled well, this can be a really big benefit to you and your business.

Another important tax advantage is that you can write off certain business expenses, which will save you a lot of money.

For example, the business just paid for me to attend the Tropical Think Tank Conference this summer with Chris Ducker, John Lee Dumas and Darren Rowse.  And that large ticket price… Paid for by Ebookpreneur, LLC.  Tax deductible…which is nice.

Why Have Just One KDP Publishing Account?

Another added benefit to starting a publishing company is that you’ll be able to start up another Amazon KDP account.

The terms of service state that you can only have one KDP account.

However, the cool part of owning your own publishing company is that your company has its own EIN and bank account, which allows it to open its own KDP account. So now you can have two, and the second one is a publishing account, which comes with added benefits.

Why should you care about having another account?  Well, you can have more author pages, as well as use more pen names.  But also, it’s nice to have a little bit of redundancy to fall back on in case something bad happens.

Things Your Should Know Before You Start Setting Up Your Very Own Publishing Company

Before we dive into the step-by-step process on how to start your own book publishing company, we need to look at some of the things you should think about first.

What Form of eBook Publishing Company Should I Start

Before you can start creating your own eBook company, you need to choose which type of business structure you would like to create.

There are many different types of businesses like S-Corporations, Sole Proprietorship, General Partnership, Limited Liability Companies and more.  Each one has its own pros and cons, but in the end, I believe that the Limited Liability Company (LLC) is the best one for publishers.

I have heard an LLC be referred to as a Corporation, however, no matter what you call it, it is not a Corporation.

While not a corporation, it still provides adequate protection of assets without being as difficult or expensive as setting up a Corporation.

Furthermore, an LLC is more versatile and allows you to tax it as a Sole Proprietorship, Partnership, C Corporation or S-Corporation.  Basically, it is the best of all worlds and fits nicely in the self-publishing business structure.   Here’s a great article that discusses in more depth the difference between a Sole Proprietorship and LLC, the two that most likely will fit most self-publishers.

Don’t believe me, check out the bottom of many of your favorite authority authors or bloggers and you will see those magical LLC letters.  List of famous publishing authors who have setup their own publishing companyBut, before you make a decision on which is best for you, make sure to do some extra research on each.  To find out more about each type, you can check out the IRS’s page on business structure — okay, that made me feel a little dirty referring people to the IRS…haha.

Selecting a Name

Think good and hard about this one.

Although the name of your business doesn’t need to reflect the name of your actual business, it can still cause problems if they aren’t the same.

Also, it is a good idea to have backup names ready just in case yours is taken.  The good news is that the name availability is state specific, meaning that even though a company may have registered the name in New York, if it hasn’t been registered in the state you are filling with, then it is available.

So, to find out if your name is available, go to your respective state’s name search.  To do this, type into Google: Secretary of State business name search “Name of the selected state”Starting a Publishing Business in Wyoming

Selecting a Location

When setting up an LLC, many self-publishers will make their home their place of business since they need a physical place for their company.

This is a bad idea because your information will be public and debt collectors, lawyers, and random people will know where you live.  So what can you do instead?

Rent a Physical Location: I don’t think I need to explain that this option is very costly and isn’t really a viable option for most of us.

Get a UPS Mailbox: It’s important that you get a UPS mailbox because most states do not allow you to put a P.O. Box number on the application.  Luckily, UPS gives you a mailbox number that looks like a regular address.  By choosing this option, you will need to show up in person to setup you mailbox.  That means the state in which you decide to setup your LLC will be completely dependent on your ability to physically get there.  But once you setup your mailbox, you can also have them forward your mail to your real address so that you don’t have to actually go there to get your stuff. I’ll explain later, though, why you might want to setup your LLC in a different state.

Setup a Virtual Office: Virtual Offices are my favorite option.  These are professional offices that give you a specific mailing address, collect your mail, forward it to you, and can also be your Registered Agent (extra level of personal protection).  Furthermore, most virtual offices will give you a 1-800 number and will record and send you voice mail to you electronically.  This option is great for those of you who travel or if you reside in a state that has awful business taxes. Furthermore, you don’t have to go there to set it up.  You can do it from your home in a different state, or from a different country–like Sri Lanka like I did 😉

Now, for those of you thrifty business people who are looking for tax breaks or lower annual registration costs, here are a couple of the states that most setup their business in.

If you live in one of these, then great…otherwise you will need to setup a virtual office there OR setup your UPS mailbox within that state to legitimately create an LLC in that particular state and reap their tax benefits.

Nevada
Annual $325
  • Setup Fee: $75
  • No Business Income Taxes
  • Member Meetings not Required to be Held
  • Single Member LLCs Allowed
  • Little Disclosure Required
Wyoming
Annual $52
  • Setup Fee: $100
  • No Business Income Taxes
  • Member Meetings not Required to be Held
  • Single Member LLCs Allowed
  • Little Disclosure Required
Texas
Annual $200
  • Setup Fee: $309
  • No Business Income Taxes***
  • Member Meetings not Required to be Held
  • Single Member LLCs Allowed
  • Little Disclosure Required

*Of special note, Nevada just recently created a “Licensing Fee” which includes an extra $200.  So, if you are doing extra research and keep seeing Nevada listed as #1 for entrepreneurs or starting a business, check the date the article was written.  They increased their Annual Renewal Fee from $125 to $325.

**Unlike the other two, Texas’ Annual Renewal Fee is PER partner.  So if you and your spouse are members of your LLC, then you will pay $400 per year to renew your LLC.  OUCH!

***While Texas claims to have a “No Business Income Tax,” they do tax on something called “Gross Receipt Tax” which taxes a company on the total gross revenues, instead.

Don’t take for granted some of the above metrics or statements.

Although the three listed above share many of the same attributes, most states do not have many of these.  Out of the 50 states, only 7 states offer no business income tax, but a couple of them have a secondary tax which is basically an income tax, but called something else — like Texas does.

I have personally setup a corporation in both Nevada and Wyoming with Wyoming being my overall favorite.

However, again, make sure you do your research before making such a big decision.

Originally, I setup in Nevada. But when I went to setup Ebookpreneur LLC, I did my research again and discovered that things had changed since I last did my research and started up my other two.

So be diligent in your research.

Setting Up Your Book Publishing LLC

Setting up an LLC, corporation or sole proprietorship is actually quite simple.  When I created mine, I used a service called My New Company.  I personally selected a LLC, chose my virtual office in Wyoming, and even designated them to sign corporate documents for me (added privacy).

Check out the video below to see how I did it in under 10 minutes.

 

And just like that, you could be a President/Owner/Founder of your very own publishing company.

Pretty cool huh?  Now was that so hard?

Books I’d Recommend to Prepare for Running a Publishing Company Smartly

Jumping into setting up a LLC, Corporation or Sole Proprietorship can seem pretty monumental and if you’re like me, then you probably like to do your research.  Before I jumped into setting up my LLCs, I did my fair share of reading.  Here are three books I’d recommend based on where you are at with the process and areas in which you should know more so as to better manage your company once off the ground.

LLC vs. S-Corp vs. C-Corp

Tax book LLC vs S-CorpLLC vs. S-Corp vs. C-Corp is a great book for those who aren’t sure whether or not they should start a LLC, S-Corp, or a C-Corp. It goes into GREAT detail on each one, their benefits and how to effectively run each. Highly recommend this book for those that are stuck on that particular step of the publishing company setup process.
 
 
 


The Tax and Legal Playbook

Tax benefit bookThe Tax and Legal Playbook is my favorite book for helping me to understand taxes and how to operate my small business. It was a great combination of conservative as well as risky but helped me to figure out to TRULY get the best tax benefits from my LLCs and ensure we are operating legally as well. Some of the best money I’ve spent.
 
 
 


Self-Publisher’s Legal Handbook

Tax benefit bookThe Self-Publisher’s Legal Handbook is a must own for any self-publisher. Although it doesn’t dive deep into the business setup of things, it does give keep data on copyright laws and infringement. It will help you to understand your rights as a publishing company and help you to mitigate any pit-falls.
 
 
 


Need More Information about Starting a Company?

I’m a big fan of learning more and ensuring I’ve got a handle on something before I get going.  Here are a couple of articles I found useful when I was doing my original searches:

So, what are you waiting for?

Thanks to services on the Internet, it is easier then ever to setup your own LLC or Corporation.

Although there are added annual costs to making your business an official business, the benefits of stating your very own publishing company will quickly outweigh this.  Better taxes, increased personal security, and more publishing capabilities were all reasons why I started 3 different LLCs to support my entrepreneurial habits.

Now that you know how to start your very own publishing company, get started and become a book publisher today.

If you have any questions along the way, don’t hesitate to ask me but please remember that I am not a lawyer….just an experienced entrepreneur.

Cheers,
Dave-Signature

 

About Dave Chesson

When I am not fighting dragons or chasing the bogey man out of my kids closet, I like using my previous Online Optimization skills to help other authors with the 'technical' stuff and get the right authors to the top of Amazon and any other eBook service out there.

  • Pingback: Free Book Marketing Ideas | Dave Chesson()

  • Pingback: The Legalities of Publishing Your Own Book - A Book is a Wonderful Thing()

  • Pingback: How to Publish Books on Google Play! Part 1()

  • Pingback: S1E3 — Copyright Kung Fu Basics - Start Your First Publishing Company, and other tips to protect yourself from litigators (Dave Chesson). - Dan Dynneson()

  • Pingback: Using your PBN's persona for guest posting opportunities()

  • Jeremiah Boehner

    This more of a how to set up an LLC then how to set up a publishing company. Thought some of the tax features mentioned were helpful.

    • It’s more like “how to turn your hobby into a publishing company…in the legal sense.” PS: Your book, “Content Marketing” is great. Nice job.

      • Jeremiah Boehner

        Yes that sound accurate, Thanks for the kind words. My next one in the series will be pretty epic.

        • Jeremiah, when’s the next one coming out? I haven’t heard anything yet.

          • Jeremiah Boehner

            Hey Dave, I’m putting together now, I’m hoping to have it ready to go by the end of the year when I launch my content marketing course. Life has been busy as I’m also redoing a lot of my funnels based upon my learning from putting the book together.

  • Pingback: The 5 Biggest Self-Published Author Mistakes that Kill Book Sales | readers+writers journal()

  • Texas Patriot

    I realize that copyright is technically automatic upon publishing something, but did you formally register the book mentioned in your article with the U.S. Copyright Office?

    • No, I did not. But I asked my lawyer about that. He said “on the record, you should.” Then he said, “off the record, its a waste of time.”

      • Liz Long

        It’s only $35 and it really is cool to hold that piece of paper in your hand.

  • stvwrd

    Is it possible to roll previously published works under the newly formed LLC, or does it only protect new books/products published AFTER the LLC is formed?

    • Yes, absolutely. Basically, hand over the “Asset” to your LLC so that it is now the property of the LLC. Make note of that in your records so that it is an official “asset”.

  • Kenny Bridgers

    Greetings,
    I found this article to be very insightful.This model isn’t just for ebooks correct?

  • Pingback: (S1E31) - Guest Blogging /w Dave Chesson - Bestselling Fiction Podcast()

  • Charlene Breuer

    The question I’m having trouble getting answered is this, if I start a publishing company under one name and write with a pen name how do I align all that? Would I have to file two separate DBA forms or will the pen name fall under the publishing company? When I start selling I’m just confused on how to open the bank account and get EIN if the books are selling with my pen name, but I start a publishing LLC with a different name. The reason they will be different is I read in research it was more “professional” if it seemed the publishing company and pen name were separate and different entities. So now I have two names, both fictious, what do I do? Thanks!

    • Hey Charlene, so the name of my publishing company is Ebookpreneur LLC. Using the EIN, I created a publishing KDP account (not my personal one) and inserted all the tax information for the company. Then I chose used pen names for all of my books. No need to do a DBA because the name of the author is not the name of the company. Now, I will place on the front matter page a “Ebookpreneur Publishing” stamp, but I don’t have to do that either. At the end of the year, Amazon sends you your tax forms because THEY know that your books are attached to your publishing account…and you’re good to go.

  • Steph

    For clarity, if I am registering my business in my home state and then setting up a Virtual Office in Wyoming, would that at all be a conflict?

    • You would need to register you business at the address of your Virtual Office. Otherwise, it would be a total conflict. The idea is that you choose the State you want to start your business in (because of tax benefits) and then get a Virtual Office so that your business has a legitimate place in that state…and thus can legitimately register in that state. The key with this method though is to ensure the tax benefits is better than the cost of a virtual office…otherwise you are spending money to try to save less money.

      • Steph

        I understand completely. Thank you.

  • Another great one Dave, you have a talent for EVERGREEN articles. Now my question: Have you seen Estonia’s E-residency? They also offer easy company founding etc. Also for international guys like you and me, maybe it is even wiser (less $) to register your company in foreign country, like Estonia? Or is that a problem with Amazon? I think this is another great topic for an evergreen article, the pro’s and con’s of oversees companies etc. etc. I cannot find in depth articles about it on the net!

    • Thanks buddy. Yeah, I’m not a pro on international, but one thing that goes against us Americans is that the US government will still tax us as US citizens if we take an income from our overseas business. So, your foreign established online business will be taxed by whatever country you set it up in…but any money you receive will be taxed by both countries…the US and the other…even if you never went back to the US. I could be wrong so check that, but that’s my understanding.

      • You’re right about that, Americans’ Tax home remains USA regardless of where they physically are. You would have to give up your passport in order to break the chain, which is getting increasingly harder to do.

  • Kirkland

    Hi Dave. I am new here. I would like to say this is a great article you have. I would love to become a book publisher in the near future. Since this article mostly focuses on E-publishing, I was wonder if you had an article/tutorial on physical book publishing, and listed resources on how to get those books in book stores. I love physical books so that’s why I’m asking 🙂 Thank you for reading my message.

    • For physical books, all you need to do is format your book for “CreateSpace”, the Amazon Print On Demand (POD) service. Then they’ll take care of all of the logistics for you. Later next month, we’ll have some articles on exactly how to do that sort of formatting, and I’ve got an article about how to get your self published book in a Indie Book store (they’re actually better and I’ll discuss why). Hope that helps.

      • Kirkland

        T months later and I finally get a response! Lol thank you though. Yes I like to know how to get a self published book in a Indie Book store. If they’re better than please discuss this.

      • Kirkland

        Two months later and I finally get a response! Lol thank you though. Yes I like to know how to get a self published book in a Indie Book store. If they’re better than please discuss this.

        • Yeah, sorry about that. I must have missed it. I’m usually pretty good but was replying to someone else’s and was like “huh…must have missed that one.” Yup, that article is scheduled for later in September – sorry for the wait. I like to plan out months ahead of time and ensure all phases are tested before publishing.

          • Kirkland

            Sounds good to me bud. In addition to that do you have any articles regarding Kindle royalty rates? If not I would like to know from you how do you feel about them paying the authors a royalty based on pages read, rather than paying authors a royalty each time a reader makes it through 10% of a book. I know this has been the case for a while, but I would like to know you take on it, and how it has impacted you personally.

          • Too many “not-so-moral” people were taking advantage of the original system. Amazon responded. The problem though, was that there were too many ‘small’ books out there where 5-10 page turns later you were past the 10% mark. Therefore, their system (ideally speaking) was created so that if you wrote a good book that people liked reading, you’d get paid for each page of work.

            Is it perfect? In an automated world – it’s as good as it gets and Amazon likes to be automated. It hasn’t affected me much though because I don’t put many of my books on KENP.

          • Kirkland

            Hmm I have never published on Kindle, but from what I have been hearing from other authors is that it has greatly hurt their royalty rate by publishing there. If you don’t put a lot books on KENP what is your go to place?

          • No no no….KENP is a sub program within Kindle. You can select your Kindle book to be in the KENP program. I just don’t choose to make my a part of that program. But I definitely sell my books on Amazon Kindle…it would be sort of hypocritical if I didn’t 😉

          • Kirkland

            Okay I gotcha 🙂 Forgive my ignorance I’m still new to the publishing platforms and the facets that come with it. So it was KENP that made the royalty rate change not the main platform…I think I got it now, haha

          • No worries. Yeah, a lot of authors were miffed over the KENP changes. But Amazon Self Publishing is still amazing.

          • Kirkland

            I will keep all of this in mind. I believe this site will be very helpful to me, so I will be a regular reader here. Plus I like you 🙂

          • Thanks!

  • Kay DM

    Hi Dave, it’s a great article. I just want to know that this will apply to non-US person?

  • Jenny

    Hi Dave! Great article! I have a question similar to @Steph. I live in NYC where LLC formation costs are expensive. There is a newspaper ad publication requirement of $1,000 for any new LLC. Can I form an LLC in another state for tax purposes & set up the Virtual Office there? I will be doing business in NYC. Will I still have to pay annual taxes in both states? Or would you suggest I later change my address to NYC. I want to be able to do business in NY. Thanks!

    • Hi Jenny. A lot of that depends on what “Doing business in” means. If you have a brick and mortar store or are selling physical products in that state, then you are doing business in that state. But if you are writing books in a state, and selling them online, then you aren’t doing business in that state necessarily, unless you setup your LLC in that state. For me, my book LLC is out of Wyoming, but I’m never there – my virtual office is.

      However, when I pay myself a salary from my LLC, I have to pay personal taxes to the state I’m living in – so keep that in mind.

      You can setup a LLC in another state, and open a virtual office but again, that comes back to the “Doing Business” part above. I hope that helps.

      • Jenny

        Thanks for the reply! I understand. My publishing business will be online. Will I have trouble setting up a business bank acct in NYC if I setup the LLC in another state? or will I have to have a bank account out-of-state? Also, you mentioned paying yourself a salary from the LLC. Do you recommend electing to be taxed as an S corp with a “reasonable salary” for a new publishing company?

        • You should have no problem setting up a bank account out of state. We did that. Depending on how much you pay yourself, yes. We also elect to be taxed as a S corp.

          • Jenny

            Awesome! I know you’re not a lawyer but I appreciate your business sense & happen to have another question: I want to operate multiple lines of business in publishing, art, technology, etc. With the same name X Publishing, X Art Studio, X Technologies. Can I do that? Should I form them as separate LLCs or create an umbrella LLC with DBAs. I’ve heard that DBAs don’t offer protection. Will this be difficult in terms of taxes?

          • Multiple LLCs means multiple banking accounts, multiple taxes, and multiple setup fees (plus annual meetings for each, book keeping, etc…). So, it’s very painful. But the plus side is that if one gets sued, the others should be safe.

            Another option is to create a X LLC and then create a bunch of series under it. However, as I’ve read, there’s no proof that a series would be seen as a separate Business entity and thus be protected from the others. It would also have to have separate accounts and taxes….so not much more benefit except for no extra setup fees.

            The truth is, setting up multiple LLCs is a LOT of work and hassle. You could just setup one and have them all operating under that one. But there would be no separation or protection. But let’s be real…what’s the chances any of those LLCs could be sued? I guess that depends on the market they operate in or service they provide.

          • Jenny

            Thanks so much! If I set up my publishing company out-of-state and will ship physical books from NY, will I then have to register as a foreign entity or should I just use my virtual mailbox address for any shipping? Also, how will I charge tax? Will I apply NY or out-of-state tax?

          • That depends on the medium in which you are selling. Shipping physical books from a different state should include a new tax of any sort – but again, I’m not a lawyer.

          • Jenny

            Thanks so much for your help! I’ll continue following your posts on Kindlepreneur. You’ve given me so much insight!

          • No problem and any time!

  • wrighttracks

    Just read through everything. Nice. I already have a couple of LLCs. I would like to use one of them for publishing. It is presently used for art sales. So the question is, can I simply just say, “Out of bounce Publishing”, Wilson Fine Art LLC. Once I put that on a publication, is that all I need to do and then just run all the expensiveness and profit through that account, or is there an need to do something official? Thanks a ton. D Wright

    • Actually, you don’t even need to say that. One of my LLC’s was originally used for our housing investments and rentals. I then just started adding my niche websites into it as well. All we had to do was document it as such within our records. We had a formal meeting between the two stake holders (Me and my wife – and even made it into a nice dinner on the business’ bill) and discussed it and then annotated it in our books…thus adding the niche website assets to that LLC.

      • wrighttracks

        Thanks a bunch for the quick response. It looks like I am off and running without any real issues. Much appreciated, David Wright

  • Fawn Johnston

    Hi Dave this is an exciting article as we plan to start our publishing LLC also out of UK as my husband is from there. 😉 So pretty much the same thing applied to the states is applied to the UK? Correct? Just wished to reach out, as I saw this article last night and thought, this is what I want to do omg lol Thank you so much

    • Hi Fawn and glad you found it! Not sure how the information above plays out for the UK though.

      • Fawn Johnston

        Due to our high demand in doing Webinars and Workshops internationally, We will discontinue doing anymore Secure Creditor Services and Coaching after March 1.
        If you have any questions regarding our services please go to http://www.securecreditor.com and click on the FAQ link or click on the Help in the green bubble to the bottom of the webage. It will take you to the Help Desk.
        If you cant find your questions on the FAQ page or Help desk you may contact our Support team at securecreditor@gmail.com.
        Please put in the subject “Service” if interested in Services. If you are interested in the Ecourse please put on the subject line “Ecourse” so our team can better assist you.

        For our powerful Subliminal Mp3s and Ormus orders please go to http://www.infinitesubliminalsolutions.com
        Office Hours are

        10am to 5pm pst Monday through Friday

        Sincerely

        IMS SUPPORT STAFF

        Illuminating Minds Society

        • Not sure I understand

          • Fawn Johnston

            O I’m
            So sorry that was an old autoresponder

  • Alex Vickers

    Dave, thanks for posting this information. It is very helpful. I was wondering if you had any thoughts on how to publish someone else’s book. I want to set up an LLC publishing company and publish several friends’ books, taking 30% of the revenue and giving them 70%. Do you have any experience with something like this?

    • Hi Alex! The trick is going to be how you work it between the two of you. The bummer part is that Amazon doesn’t split fees (I wish they would). So, as the publishing company, you’ll publish it on your KDP account, and send the percentage to the author. Tax wise, the total brought it for the book is revenue, the percentage to the author is operation costs/expenses/services paid, and the 30% is your profit (the taxable part). The only tricky part for you is how you negotiate the operations of sending money to the author. Do you pay it monthly? Do you send proof? What does your legal documents/contract look like?

  • Jim Wilbourne

    Hi Dave,
    When researching which state to form an LLC in, I came across a lot of advice that said just go with your home state because you still end up paying taxes out of that state and you end up registering and dealing with extra paperwork. But then I also get information saying the contrary. I’m confused.

    Here’s an example of a site who’s giving this sort of warning: https://www.llcuniversity.com/best-state-to-form-an-llc/

    Additionally (and I’ll be specific here), I’m looking to start a LLC with another author. Right now, we both live in MA, but I’ll be relocating to GA soon. GA is much cheaper to incorporate in, but I’ve also heard that even if some of the work is done in another state, you’d need to file as a foreign entity in that state?

    I’m just unclear on the information I’m getting from different camps. I would really appreciate some helpful info.

    • Hi Jim. The real answer is…it depends.
      1. It depends on the type of business you setup LLC or S-Corp or sole proprietorship
      2. It depends on the state you live in – CA vs TN? CA with big taxes, WY with no income tax
      3. It depends on whether or not you have a virtual office (which is a must if you are going to claim another state for the business).
      4. It depends on the pay structure you set out for yourself. ->a lot of depends on this one.

      • Jim Wilbourne

        Awesome. Thanks for replying. I’ll answer all these as best I can.
        1. The setup would be LLC.
        2. We both live in MA (taxes and registration fees are high), but I’m planning to relocate with in 24 months to GA (where taxes and registration fees are low). We haven’t completely set a timeline for when we’re going to pull the trigger and get this thing official, but we’re researching so that we make the right decision.
        3. I suppose we wouldn’t have a virtual office, but I can make that happen. Do you have a starting point for that? Should I just research virtual office spaces on Google?
        4. Pay structure hasn’t been established yet. If you have any advice on that, please let me know. The idea I have now (based on what I’ve seen others do) is to do a 49-51 split with the LLC (70% royalties from amazon goes to the LLC. From that, 70% goes to the author, 30% goes to the LLC). If this isn’t what you mean, please let me know.

        As you can see, I’m clueless. I really appreciate this.

Follow More Kindlepreneur Action Here