3 Reasons to Turn Your Publishing Into a Publishing Company
To most of us, we started self-publishing for personal reasons; get more income, fulfill a dream, be proud of something, etc…
However, at the heart of it, you are submitting a product to one of the largest companies in the world for international sales. You are opening your work to the world and receiving payment as well as having to fill in the right taxes at the end of it all.
In essence, you have a full blown business on your hands whether you want to call it that or not.
So, to help you understand why you should start treating it as such, here is a list of 3 reasons why you should take that step and actually start a publishing company now.
Once you are writing under an official publishing company with your own EIN and tax number, you can now start claiming your costs as a business expense.
Need a new computer? How about that new writing software that is out? Yup, you betch yah, those are all expense write offs.
This can even go a step further. If you make a vacation trip and do some writing while on vacation, you can now claim it. Go to a convention or conference, yup, again you can claim it.
Another things about taxes is that you can now split your income streams from your own. Say your household is making over 100K and your books bring in 50K. The combination of the two might put you in a higher tax bracket and ultimately make you pay a higher percentage in taxes…ouch!
But if you have your writing under a LLC or corporation, then your income is split and it won’t cost against you. Which is nice!
No one reading this article is probably cheating, copying or knowingly breaking the law with their books. But that doesn’t stop other authors, or publishing companies from coming after you.
If your writing isn’t covered under a LLC or corporation, the courts and the claimant can not only nab your book income, but also go after you personal assets, savings, possessions, etc.
Therefore, putting your works under a LLC or publishing company can help to separate your funds from the writing funds.
So, protect your personal assets by splitting the two and creating your own publishing company for your works.
More Than One KDP Account
Being a publisher in Amazon’s KDP account has its benefits.
First, you can have a personal KDP account and a business account. Although there isn’t an immediate use for two, it does give you a backup in case bad things happen.
Also, having a publishing account under KDP gives you more author pages and pseudonym capability which is nice.
So what Now?
Setting up your own publishing company is very easy and can be done in as little as 15 minutes. You can check out this guide to learn more about the LLC setup process.
But the most important thing is that you understand how important protecting yourself and your taxes can be from your self-publishing hobby.
There are multiple benefits to it and it can be very simple.
So what are you waiting for?
Dave Chesson, Kindlepreneur
Beware of This Book Cover Design ScamAugust 15th, 2020
Master The Art Of Book Cover Design With These 8 TipsAugust 15th, 2020
Warning: These 8 Mistakes Will Destroy Your Book Cover DesignAugust 15th, 2020
5 Book Editing Mistakes that Make You Look DumbAugust 15th, 2020
Do You Really Need A Book Editing? (This will help you decide!)August 15th, 2020