Training Authors with CJ and Shelley Hitz

We help Christian writers of all genres write words that will outlive you.

  • Home
  • Contact
    • Contact Us
    • About
    • Support
    • Media Room
    • Legal Information
  • Resources
    • Free Training for Christian Writers
    • Blog
    • Podcast
    • Read Our Books
    • Recommended Outsourcers
  • Member Login
    • Member Login
    • Support
  • Join Our Academy

How To Start an Independent Publishing Company – 10 Essential Steps

March 19, 2015 By Shelley Hitz 2 Comments Click here for a FREE book marketing training

ShareTweet

independent publishing companyAs an author, you might want to start an independent publishing company for your books.  Many self-published authors are now choosing this option.

In fact, this is what my husband CJ and I have done.  We started Body and Soul Publishing in 2012 and haven’t looked back yet.

Disclaimer: This blog post is for informational purposes only.  I am not a lawyer or accountant and am not giving legal advice.  Consult with a tax professional and lawyer before making decisions regarding your business.

Three Reasons to Start an Independent Publishing Company

 1)   It looks more professional.

When you start an independent publishing company, you can then register your ISBN with your company name as the publisher.  This will show up on your book sales page and looks more professional than “Createspace” or “your name” as the publisher.

2)   It separates your book publishing activities from your personal income and assets.

It can be helpful to have your business and personal finances separate for tax purposes.  In fact, sometimes it can save you money!

Also, when you form a LLC or S-corp, it shields your personal income and assets from lawsuits that may occur.  Lawsuits are very rare in our type of business, but some people prefer to have this extra layer of protection in place.

 3)   It gives you more options.

Once you establish your independent publishing company, you have more options.

You may even choose to publish other author’s books with your publishing company listed as the publisher.

10 steps to forming your independent publishing company

 #1:  Make a Decision

The first step to start your independent publishing company is to make the decision.  You need to decide that you want to make writing and publishing books a business and not just a hobby.

This is a huge mindset shift for most authors. 

And a necessary one.  I found that once I made this decision in 2012, I became much more serious about investing into my publishing business.  And as I focused more on book marketing, my career as an author took off.

Are you ready?  If so, it’s time to go to step #2.

 #2:  Research Your Options

Now it is time to research your options.  Make sure to know what options are available in your country.  Since I live in the US, I researched three main options:

  • Sole Proprietorship
  • LLC
  • S-Corporation

A sole proprietorship is an unincorporated business that you run yourself.  In the US, you claim this under your social security number for taxes.  This is the easiest way to start.

An LLC is a limited liability company that is taxed similarly to a sole proprietorship.  However it is an incorporated business and separates and protects your personal assets from business assets under limited liability.

An S-Corporation is an incorporated business and gives more tax advantages and savings.

Although you don’t need to know every detail about each option, I do think it is wise to do some basic research before consulting with experts when setting up your independent publishing company.

#3:  Consult With Experts

It is important to consult with experts before making decisions about your business.  Many lawyers and accountants offer a free consultation to answer your questions.  They can advise you on the best path for your particular situation. 

For my husband and I, it was recommended that we start an LLC that is taxed as an S-Corp as this would save us thousands of dollars in self-employment taxes.  However, each person’s situation is different.  So, make sure to consult with a lawyer and an accountant for advice on how to proceed.

#4:  Decide on a Business Name

Once you decide on which type of business to set up, you now have the responsibility of choosing a name for your independent publishing company. Ensure your name is not trademarked or already taken in your state if you live in the US.

You also want to choose a business name that is professional and fits your brand.  Don’t rush this step as your business name will stay with you a long time!

#5:  Finalize the Business Type

Now that you have your business name chosen, you can finalize the set-up of your independent publishing company.  When we first started Body and Soul Publishing as a sole proprietorship, I filed a DBA (doing business as) with my state.

I then received paperwork that listed my EIN (employer identification number) which would allow me to open a business bank account.  I also used that EIN to file 1099’s for my contractors and to file my taxes for our business.

However, once we decided to incorporate as an LLC, we had our tax guy set it up for us.  He charged a minimal fee and made sure it was done correctly.

#6:  Set Up Your Business Bank Account

Once you have your EIN, you can now apply for a business bank account.  Each bank has a different process and requirements for setting up a business account.  Therefore, consult with your local bank for more details.

You may also want to set up a business Paypal account for transactions online.

#7:  Set Up an Accounting System

Bookkeeping used to be a bad word in our house.  However, once we learned how to properly use accounting software and set up our bookkeeping correctly, it actually helped to decrease our stress.

We consulted with an accounting service and paid a small fee to have them help us set everything up.  We use Xero.com to handle our accounting.

Make sure you implement a system for tracking your receipts.  You also want to be very careful to never buy personal items with a business account and vice versa.  You want to be organized and keep things separate.  This will make life much easier come tax time!

#8:  Register a Domain Name for Your Business

I highly recommend you register a domain name for your business. This is another way to add more professionalism to your company.  It can also be a place where you post a listing of your published books.

I have recently started using the My Book Table plugin on my author site and recommend it.  It makes it super easy to add book pages and buy links for your books.  You can see how I set it up here.

#9:  Learn the Laws Related to Your Business

Make sure you learn the laws related to your business.  For example, in the US, there are laws about collecting sales tax when you sell books at live events and it differs from state to state.  You may also need to register for a sales tax license in your state and/or your city.

#10:  Celebrate Your Success!

Now it is time to celebrate your success.  You have formed your own independent publishing company!

My Personal Story

In 2012, we started our independent publishing company.  Initially, we created a sole proprietorship because it was the easiest way to start with the least expensive.

However, last year (2014) my husband and I got hit really hard by taxes.  Therefore, we decided to set up an appointment with a local “tax guy.”  Fortunately, our appointment went really well and we decided to officially incorporate our business as an LLC, filing taxes as an S-Corp.  We have a long to-do list, but I am confident that next year will not be as stressful, which is such a relief!

The bad news?  If we would have consulted with this same “tax guy” last year, he could have saved us thousands of dollars on self-employment taxes this year.

Ouch.

We will definitely be hiring him to do our taxes next year!

Have you ever learned a lesson the hard way?

I have many times.

And it seems I learn more from my mistakes than I do from my successes. It is in the difficult and painful seasons of life that I grow the most.

I’ll be honest…there are days I feel like giving up.  I ask myself, “Is this really worth it?”

Occasionally God will give me a small glimpse of the impact my life is having on others.  In fact, this very week I was encouraged by two authors that personally thanked me for helping them publish and market their books.  They are both successful authors today.

So I will close with some encouragement for you (and for myself) as we embark on this journey of writing and publishing books.

 “Never, never, never give up!”

I encourage you to learn from your mistakes and keep making progress toward your goals one step at a time.

Share Your Experiences

Have you started an independent publishing company?  If so, share your business name and website in the comments below as well as any advice you have learned along the way.

Share this post: on Twitter on Facebook on LinkedIn

Filed Under: Self-Publishing

About Shelley Hitz

Join Our FREE Facebook Group: Kingdom Writers Community Group

Together, CJ and Shelley Hitz are passionate about equipping and empowering Christian writers of all genres to share their unique gifts with the world. This website is filled with spiritual encouragement as well as prayers to help you overcome the resistance you face as a writer. Your story matters! Our online community, Christian Book Academy, is where we help you write, self-publish and market your books. We invite you to join our community of Kingdom Writers! 

  
Get our FREE training for writers here and shop our tools and templates here.
 

Comments

  1. TJ says

    October 3, 2018 at 11:38 am

    Shelley, thanks for sharing this wonderful information! Does your Body and Soul Publishing Company publish only books you write or co-author or has it grown to take on other authors, if they fit your mission?

    Reply
    • Shelley Hitz says

      October 3, 2018 at 12:18 pm

      TJ – I’m glad to hear you found this helpful. We currently only publish our own books. But, we have co-authored many books. I have a blog post on that topic too here: https://www.trainingauthors.com/self-publish-book-co-author/

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Welcome!


Meet CJ and Shelley Hitz

As mentors to writers inside our online membership, Christian Book Academy, we help writers of all genres write words that outlive you, self-publish books that fulfill your calling, and reach more readers with your message. Join our community of Christian writers here.

Move Forward in God’s Call to Write


Want to see God move in even greater ways through your writing? If so, get your copy of our book, Kingdom Writers here.

Get Your Book Out of Your Head and Onto Paper


Get your book out of your head and onto paper using our 3 proven book writing formulas...and then create a writing plan to finish your first draft in our 90-minute workshop here.

Book Marketing Templates to Save You Time and Money


Get your social media posts for the next month done in just 90 minutes so that you can reach more readers with your book (without being pushy or salesy) in our 90-minute workshop here.

Subscribe to Our Podcast

author audience podcast
Subscribe to the Podcast:
 iTunes |  Stitcher |  RSS

Connect With Us Online!



Follow us on Instagram

Click here to follow us on Instagram

Subscribe to Our YouTube Channel



Get Email Updates from the Blog

 Subscribe via RSS

Subscribe by Email

Join Our Community of Kingdom Writers



Find out more here: www.christianbookacademy.com







































[footer_backtotop]

Contact Us | Legal Information | Privacy Policy | Cookies Policy | Terms of Service



Copyright © 2023 Training Authors, a division of Body and Soul Publishing LLC - All Rights Reserved. Log in


Disclosure: Some of the links in the page above may be "affiliate links." This means if you click on the link and purchase the item, we will receive an affiliate commission. We are disclosing this in accordance with the Federal Trade Commission's 16 CFR, Part 255: "Guides Concerning the Use of Endorsements and Testimonials in Advertising."