Whether you are self-publishing or going the traditional route, at some point you will wonder if you need an LLC. And official business entity for your author career.

I made a video many years ago with this, and now I’m better at making videos so I’m making it again.

The answer is both no and yes.
No, you at no point are required to have an LLC. There is no entity that will show up and reprimand you for not having an LLC.
In some states, the LLC filing fees are inexpensive, can be done without a lawyer, and you pay your annual fee and you’re set. In some states LLC registration fees are very expensive to set up and maintain an LLC.

For my purposes, I self-published my first book in October 2015. I did not create my LLC and move my IP Into that LLC until the summer of 2019.

So no, you do not need to stop what you’re doing and create an LLC before your first book comes out. You can create one later.

I do think eventually you will want one. An LLC is a limited liability company. You are limiting your liability. Listening to the Kindlepreneur podcast like a decade ago Dave Chesson used this example and it stuck with me:

So let’s say you are in a fender bender. Bummer. And it’s your fault. Yikes.

When you have this business created, the person in this fender bender can only come after your personal assets, your author income is separate in the LLC. They can’t touch that.

Also, let’s say you are accused of plagiarism. Doesn’t matter that it isn’t true, you have to defend yourself. The other party can’t go after your personal assets like your 401K or life savings for damages, because they can only go after what is in the LLC.

I hope this helps.
Go talk to an accountant or a lawyer. I created my LLC after talking to an accountant and I had enough business income to justify the fees.

Also, keep asking questions, because then I can make more videos.

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Music from: Wondershare Filmora Sounds: “Something Cheer You Up”
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