Roy Joy wrote:
As a dreamer, like everyone else, I'm going to publish a book but got a question. Should a person just do it/make an account it under himself (and tax interview) or wait and establish a LLC?
Also, if an author does create an account under himself (and tax interview) but wants to do a LLC later....can he CHANGE his account to reflect that? For example, publishing name, etc.?
Do the tax interview just under your legal name. Later you can change to an LLC if your dreams come true.
You can also use a pen name as the author when publishing.
I agree. What's the point of establishing a new taxpayer? If you earn less than $400, you can simply declare it as Other Income on page one of form 1040. If you earn more than that, you'll file a Schedule C and perhaps pay self-employment tax (FICA) on the net income after expenses. Lots of chances on Schedule C to deduct business expenses.
Thanks for the advice. Still a bit confused probably due to newbie-ness. I guess, what I'm trying to ask, is if I create an account under my name but in the future want to publish under a Publishing LLC...can I create another account as a LLC? Can I change the one I have to an LLC?
Thank you. What I'm wondering is whether I can have an account under my name and later trying to change it to a LLC or creating another account...if it's even allowed. The reason is I have two major different genres I'm interested in....and would like the supposed protection from the LLC.
Because the publishing LLC would be a different legal "person," it would have its own Amazon sign-on and password. Just before setting up the Amazon account for it, however, you could do a Contact Us and verify this. SAVE THE E-MAIL RESPONSE in case someone later--who doesn't understand the concept of separate legal person--makes trouble for you.
To then transfer publishing rights from your individual account to the LLC, you'd need a publishing agreement between you and the LLC. Some writers actually transfer full ownership to their LLC's for extra "protection." Your attorney should guide you. At the time of the transfer, do another Contact Us and say you've transfered publishing rights, and what procedure does KDP want you to use. (E.g., you could unpublish under your individual account and then re-publish under the LLC, but you might lose reviews that way, at least temporarily. Or, KDP might have a quick transfer mechanism available that they will use, provided you give them proof of the new publishing arrangement.)
I don't think the situation is anything worth sweating about. Just take things one step at a time, at the time you need to take the step.