You have a finished book, and you’re ready to pitch it to agents or publish it yourself. Congrats! But before you do that, you may need to think about finances and how you want to get paid. You can sell it yourself, but that opens you up to possible lawsuits in the future. My solution was to register a Limited Liability Company (LLC) for all my business finances.
I mainly opted to set up a LLC to protect myself from any issues that may arise. There are people out there who specifically look for individuals to sue over the silliest things. But, if they are good at their job, they could take you for a lot of money or even your possessions. By setting up a LLC, when someone sues you, they can only take what finances are linked to the company. They can’t take your personal money, house, or vehicles. We all hope no one will ever bring a lawsuit against us, but, if one does, it’s best to be prepared.
You’ll need to think of a name for your business. You can use your name, but you’ll need something to tag on the end. For example, Jane Smith Author LLC or Jane Smith Publishing LLC. It’s important to pick a professional name since you’ll use it for communications with other professionals, and you don’t want to look like an amateur.
How To Register A LLC In The United States Of America
I would like to preface this advice with a statement. I’m not an attorney, and, therefore, anything I say here is not legal advice. Please consult an attorney before doing anything.
You will need to register the LLC with the Secretary of State. I did mine by going to the Missouri Secretary of State website. They have an easy step-by-step guide on how to do it. I don’t know if every state makes it this simple so you will need to research your area. I knew a few people who have set up an LLC before; therefore, I did it myself with their help. It cost less and was simple, but there are ways to mess it up if you haven’t done one before. I would advise talking to an attorney if you don’t have any experienced guides. It might be good to talk with an attorney regardless though.
There was one part that confused me about registering a LLC. The form requires you name a Registered Agent for the LLC and provide a mailing address. A Registered Agent is the person who will be getting any official mail in regards to the business. The address must be in the state where the LLC is registered. You can register yourself as the agent, or you can hire a company or an attorney to be your Registered Agent. If you are still on a small income, it might be best to stick with being your own agent.
Once you complete the process and pay for the filing, you will get your Articles of Organization and the Certificate of Organization. These are your official documents you will need for any legal purposes. I got mine immediately on the website after I finished. Some of you may need to wait a couple days or receive your paperwork by mail, depending on your area’s rules.
Operating Agreement
After saving all of your paperwork, there is one more step before you can say you own a business. You will need to get an Operating Agreement—a contract about how the company will be run. The best way to get this is through an attorney. They can draw one up that meets your specific needs and meets all the legal requirements.
That being said, if you are planning on being the only member of the LLC, you could do one yourself. Unless you plan on arguing with yourself, it shouldn’t hurt your business. Again though, please consult an attorney about it. If you choose to go ahead and make one yourself, you can look up a Sole Member Operating Agreement online and fill it in the best you can. This document will need to be kept with your LLC paperwork.
Final Thoughts
I’m delighted to say I am officially a business owner now. My LLC is registered, and I am open for business! It’s an exciting trail marker in my journey, and I look forward to the day I deposit my first paycheck. I hope the information I’ve provided about this process is helpful to you budding authors and you have successful businesses. I know for me, just having the availability to get paid for my book is enough to make this author do a happy dance.
Thanks for reading!
Write a tale
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