I chose to set up a Business Entity for a few reasons
- I was told it would be easier for tax purposes to keep my “publishing” expenses and “personal” expenses separate even though in the end it still rolls up under my own tax return
- I like that my book has a “publisher”, even if it’s just me
- It helps provide a level of anonymity. For example, if you use it for your return mailing address and correspondence (If you’re interested in this I’d also recommend looking into a P.O Box so you don’t have to use your home mailing address)
Setting up a Business Entity should be relatively easy and cost effective. You will do this through your state’s Department of State. I was able to file mine online. Presumably most states, if not all, offer this service as well.
I set my company up as a Single Member LLC (essentially this means it’s a company run and operated by one person - you). It cost me $100 and took about a week for the filing to be complete. Once I had my LLC approved I registered a trade name for $50 so I can use “Silent i Publishing” vs “Silent i, LLC”. The turnaround time for this was less than a day.
Be aware, if you go this route you need to file earnings reports with the state as well, which I believe also will have a cost associated with it.
If you decide to set up a Business Entity I would highly encourage you do so before you purchase your ISBNs and before you list your book. While it’s easy to update your account with Bowker to reflect your new business name after the fact, it’s not as easy to update Amazon. In order to get your publishing name to display on Amazon you’d need to re-list your book with a new ISBN. I’m not clear on whether or not this change trickles down to other systems that don’t specifically ask for your “Imprint” or “Publisher”.