LLC is short for limited liability company…in case you were wondering. I had to look it up too. So, the question is, “Do I need an LLC?”
The answer is…It’s up to you.
Now, the idea of an LLC is to protect your personal property from your business. So, if someone tried to sue your business your private home and accounts would be protected. The problem with writers is…YOU are the only “employee.” You, unless you are Stephen King or J.K. Rowling, have no workers or “product.”
The only thing that could come back on you as a writer would be if you plagiarized another’s work, invaded a person’s privacy, or told untrue things about said person. Everything that could come back on you would have been caused by, well, you. So- don’t do any of that! It’s rude.
If you are writing non-fiction you will have to tread lightly on your subjects and be sure that all information is correct. No, really, make sure it is TRUE. Us fiction writers have it a bit easier. We are just making it up as we go along. Fun and safe. Just remember, if you are basing a character on a real person- make sure to camouflage them well enough that no one will know who it is. That’s bad form.
Besides, at this point in my, starting-at-the-beginning-non-career I have nothing to lose. Hopefully, there will come a day where I am making enough income to want to protect it with every means possible.
Also, if you procure an LLC you must keep most of the monies earned under its business within the business accounts. You would have to keep enough assists within the company accounts to cover any “oops” moments. Do you know how to do that? If you do, let me know. The whole thing confuses the crap out of me.
I’m leaning away from forming an LLC (for the moment), but I am looking into insurance to cover my bum if I step too close to the line somewhere. I haven’t done much research on this topic yet, but it’s worth a look.
With all of this said, you still need to be informed when it comes to filing taxes. This process can vary from state to state so I recommend that you become familiar with your area and its tax-based requirements. Always be prepared. Do your research before you get too deep into the world of self-publishing. Be prepared for as much as you can and find people to have in your corner when you come across something you don’t understand.
The biggest mistake you can make is to not be informed. You don’t have to know it all but be willing to learn as much as you can to be successful in all avenues.
I’m off to research insurance, taxes, and the location of the nearest padded room.
Find joy. Be joy. Enjoy.