Do I Need an LLC to Self-Publish?

One of the biggest questions indie authors ask when starting their self-publishing journey is: Do I need an LLC (Limited Liability Company) to self-publish? The short answer is no—you don’t need an LLC to publish and sell books. Many authors successfully publish as sole proprietors, meaning they operate their publishing under their own name without forming a business entity. However, there are situations where having an LLC can be beneficial, especially as your book sales grow. If you're wondering whether an LLC is the right move for your author career, this guide will help you understand what an LLC is, when it makes sense to form one, and alternative options for self-publishing authors.

What Is an LLC and How Does It Work for Authors?

An LLC (Limited Liability Company) is a business structure that legally separates your personal assets from your business assets. This means that if someone sues your business or if your publishing company accumulates debt, your personal savings, home, and other assets are generally protected. For authors, an LLC can provide several advantages, such as legal protection, tax benefits, and enhanced credibility when working with bookstores, vendors, and other business entities. However, it also comes with certain costs, paperwork, and responsibilities that may not be necessary for every indie author.

No, an LLC Is NOT Required to Self-Publish:

You do not need an LLC to publish and sell books. You can legally self-publish under your own name and receive royalties without forming a business entity. Platforms like Amazon KDP, IngramSpark, Draft2Digital, Barnes & Noble Press, and Kobo Writing Life allow individual authors to create accounts and publish books without needing a business license or LLC. If you're just getting started and only plan to publish a few books, an LLC is likely unnecessary. You can operate as a sole proprietor, meaning your self-publishing income is reported on your personal tax return without any additional paperwork or legal requirements. Although an LLC is not required, it can be beneficial in certain circumstances. You may want to consider forming an LLC if:

• You earn significant income from your books. If your book sales generate consistent income, an LLC can offer tax benefits and help with financial management.

• You sell books outside of major platforms. If you plan to sell books directly through your website, bookstores, book fairs, or in-person events, an LLC helps separate your business finances.

• You want to expand your author brand. If you plan to sell merchandise, courses, coaching, or speaking engagements, an LLC can provide credibility and protection.

• You want legal protection. If someone were to sue you over copyright issues, defamation claims, or business disputes, an LLC can shield your personal assets.

If you’re only publishing books occasionally and aren’t making significant revenue, an LLC may not be worth the hassle and expense. However, if you’re treating your writing as a business and expect to scale your brand, an LLC can offer long-term benefits.

Pros and Cons of Forming an LLC as an Author:

Pros of an LLC for Authors

1. Limited Personal Liability – Protects your personal assets (home, car, savings) if your business is sued or falls into debt.

2. Tax Benefits – You may be eligible for deductions on expenses like editing, marketing, website hosting, and book promotions.

3. Professionalism & Credibility – Having an LLC can make you look more legitimate when working with bookstores, vendors, and media outlets.

4. Easier Business Management – Helps keep your publishing income and personal finances separate, making it easier to track expenses and pay taxes.

Cons of an LLC for Authors

1. Costs & Fees – Setting up an LLC can cost $50 to $500+ depending on your state, plus annual renewal fees.

2. Extra Paperwork – You may need to file tax reports, business licenses, and annual LLC renewals, adding to your administrative tasks.

3. May Not Be Necessary – If your book sales are low or sporadic, the cost and complexity of an LLC may not be justified.

If you're not ready to form an LLC but want to structure your publishing business properly, consider these alternatives:

1. Sole Proprietorship (Default Option for Most Authors)

A sole proprietorship is the simplest business structure for self-publishing authors. You don’t need to file any paperwork—you simply publish under your legal name and report book earnings on your personal tax return. Most indie authors start as sole proprietors because it’s free and easy to manage. However, your personal assets are not protected from business liabilities under this structure.

2. Registering a DBA (Doing Business As)

If you want to use a pen name or a business name instead of your legal name, you can register a DBA (Doing Business As). A DBA allows you to operate under a different name without forming an LLC.

DBAs typically cost $10-$100, depending on the state, and can help establish a brand identity without the added complexity of an LLC.

3. Getting an EIN (Employer Identification Number)

If you’re uncomfortable using your Social Security Number (SSN) to receive royalties, you can apply for an EIN (Employer Identification Number) from the IRS for free. An EIN allows you to separate your book earnings from your personal finances without forming an LLC. This is especially useful if you plan to open a business bank account or hire freelancers for editing, cover design, or marketing.

How to Form an LLC for Self-Publishing (If You Decide To)

If you decide to form an LLC, here’s a step-by-step guide:

1. Choose a Business Name – Ensure your LLC name is available in your state.

2. File Articles of Organization – Submit the required paperwork to your state’s business division (fees vary).

3. Get an EIN – Register for a free Employer Identification Number (EIN) from the IRS.

4. Open a Business Bank Account – Keep your book earnings separate from personal finances.

5. Understand Tax Obligations – Some states require annual LLC fees and business tax filings.

You can do this process yourself through your state’s Secretary of State website or use online services like LegalZoom, ZenBusiness, or Incfile to handle the paperwork for a fee.

Should You Get an LLC Before or After Publishing?

Most authors start without an LLC and only form one if their publishing business grows. If your book sales increase and you start making consistent income, you can always form an LLC later. However, if you plan to sell books directly, expand your brand, or protect your assets, setting up an LLC before publishing may be a smart move.

Final Verdict: Do You Need an LLC to Self-Publish?

No, you do not need an LLC to self-publish. Many indie authors successfully publish and sell books as sole proprietors without a business entity. However, if you’re making significant income, selling books outside of Amazon, or expanding your author brand, an LLC can provide legal protection, tax benefits, and financial organization.

Ask Yourself:

• Am I making consistent income from books?

• Do I plan to sell books outside of Amazon?

• Do I want legal protection for my assets?

• Do I need separate finances for tax purposes?

If you answered yes to most of these, an LLC might be worth considering. If not, you’re perfectly fine self-publishing without one. Would you like help deciding which option is best for you? Drop your questions below!