Business Structure When Self-Publishing

[AnonaMoss]

When you are a self-publisher, you are a business owner. You need to choose what kind of business structure you want.

Sole Proprietorship:

If you do not choose a business structure, then your business is a sole proprietorship by default. Sole proprietorship is the simplest business structure. There is nothing that separates you from your business; this means that your personal finances and your business finances are one. For any other business, this can be a big risk. For self-publishing your book, sole proprietorship is a great business structure to choose because you don't have much to worry about (like in the food industry).

Partnership:

While this is not the "norm" for the publishing industry, it can be an advantage. A duo that splits the tasks by creativity and money, would be ideal.


LLC (Limited Liability Company)

LLC is less costly than a corporation, yet has more protection than a Sole Proprietorship. It differs from a sole proprietorship mainly because you can employ people.

[Shell323]

What do you suggest for a small work from home business? I do some writing, some research, some data entry, basically a little bit of everything. I am trying to build my own self supporting position with a lot of variety since these type of opportunities do not always last. I am aware that I will need to do my own taxes, but is it safest for a small business owner to open an LLC? I have very little experience with this and was hoping to be pointed in the right direction.

[AnonaMoss]

What do you suggest for a small work from home business? I do some writing, some research, some data entry, basically a little bit of everything. I am trying to build my own self supporting position with a lot of variety since these type of opportunities do not always last. I am aware that I will need to do my own taxes, but is it safest for a small business owner to open an LLC? I have very little experience with this and was hoping to be pointed in the right direction.

I think that LLC is great for a small business owner. It is a step up from sole proprietorship, which I like to think of as being married to your business. There is no separation between your funds and the funds that come in with the business. If someone sues a person with a sole proprietorship business, then they are suing them directly. Their personal assets could be on the line. LLC offers protection of the personal assets, and give you separation from your business. It is a bit more expensive, but a lot of people would agree that it is worth the extra money. The work you are doing is pretty low risk for lawsuits. The only issue you'd probably have to worry about is if someone accuses you of plagiary. Still, just to be on the safe side i'd go with the Limited Liability Corp. Also i'd ask a few other people for their opinions on what you should do as well; just to get additional feedback. Good Luck.

[Shell323]

I think that LLC is great for a small business owner. It is a step up from sole proprietorship, which I like to think of as being married to your business. There is no separation between your funds and the funds that come in with the business. If someone sues a person with a sole proprietorship business, then they are suing them directly. Their personal assets could be on the line. LLC offers protection of the personal assets, and give you separation from your business. It is a bit more expensive, but a lot of people would agree that it is worth the extra money. The work you are doing is pretty low risk for lawsuits. The only issue you'd probably have to worry about is if someone accuses you of plagiary. Still, just to be on the safe side i'd go with the Limited Liability Corp. Also i'd ask a few other people for their opinions on what you should do as well; just to get additional feedback. Good Luck.

Thanks very much for the feedback. I have heard that it is not ridiculously expensive to do this, but it is definitely not cheap for a small business . To the best of your knowledge is this something that would start requiring attorneys and financial advisers? I really appreciate your thoughts on it, I have been picking a couple different people's brains on the subject, but it's nice to chat with people who are in business already.