Setting Up A Publishing Company

[Cyberseraph]

Hello everyone,

This topic might be interesting for everyone who is a self-publishier and treating publishing as a business. Especially if your are outsourcing the writing process, growing your business and publishing is your main source of income, this might be interesting to consider: Starting a Publishing Company

I have been thinking about the pros and cons of incorporation and it would be great to know, who else is making a living as a self-publisher and has set up a company. Is it an overkill or does it makes sense?

Here are the pros that I think are making sense:

Legal and Financial Protection
Tax Advantages
Able to start up another Amazon KDP account

I am not from US but I am also interested to hear what type of business structure is best for publishers in US because I might move to the States in future.

Any input is very welcome. Please share your experience!

 

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[MTF]

This will probably help you a lot: http://kindlepreneur.com/how-to-start-a-publishing-company/

I would also ask @GlobalWealth about incorporation, as it's possible it would be more beneficial to set it up offshore or use a mix (US LLC + offshore company). Keep in mind it depends on the tax laws in Germany or wherever you're a tax resident. In many cases it makes no sense to set up a one-member offshore LLC because your LLC would still be considered a tax resident in your own country. Don't forget that there's withholding tax for royalties for many companies based outside the US.

As for me, I'm a sole proprietor but that's because in my country there's no structure like a US LLC. There's something similar to it, but it's not intended for a single entrepreneur, plus I don't want to be double taxed anyway. Offshore is not an option (the company would be a tax resident in my country anyway). And if I were to set up a business in the US, I would be double taxed as well (not to mention that I never want to have anything to do with the IRS).

 

[GlobalWealth]

The details really matter.

I have a lot of clients with Amazon businesses. Almost all of them use a US LLC as it simplifies the process with Amazon as well as ensuring you don't incur any automatic withholding tax.

Many of them also use an offshore entity to do various tasks: own the IP (intellectual property), provide marketing expertise, import/export of products, etc. This way you can shift profits from high tax (US) to low tax (offshore).

Of course as I stated the details matter. Your citizenship, residency, revenue, profits, future plans, etc.

But many Amazon entrepreneurs can dramatically minimize their tax burden if done correctly.

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