Should You Form an LLC Before or After You Publish? Here’s What to Consider as an Author
If you're stepping into the self-publishing world and wondering whether you need to form an LLC before releasing your book, you're not alone. It's one of the most common questions I get from self-published authors ready to build a career around their writing.
The short answer? You don’t need an LLC to publish your first book, but forming one may become a smart step once you start treating your books like a business.
Let’s walk through why that is, and how to know when it’s time.
What is an LLC, and Why Do Authors Consider It?
An LLC (Limited Liability Company) is a legal structure that separates your personal assets from your business activities. That means if your author business were to face legal or financial issues, your personal assets (like your home or savings account) would typically be protected.
For authors, forming an LLC can be especially helpful when:
You're making consistent book income (and want to streamline taxes)
You’re investing in ads, printing, or other publishing expenses
You're hiring freelancers or collaborators
You want to open a business bank account or build business credit
You simply want legal protection and a clear separation between personal and business finances
The Case for Waiting Until After You Publish
I often tell my clients that they don’t need to rush into forming an LLC. In fact, for many first-time authors, it’s perfectly fine to:
Publish your book as an individual
Track your expenses and income separately using a spreadsheet or personal accounting software
Wait until you start generating consistent sales
Why? Forming an LLC does come with administrative and financial responsibilities. There are fees involved (ranging from $50 to $500+, depending on your state), annual reporting requirements, and additional bookkeeping. If you’re still figuring out whether publishing will become a full-fledged business or more of a hobby, it’s OK to hold off.
Instead, focus first on launching your book, building your audience, and developing your long-term author goals.
When It Might Make Sense to Form an LLC Before Publishing
That said, there are absolutely situations where forming an LLC before your release makes sense:
You already have multiple books written and plan to launch them in quick succession
You’re investing significant funds into editing, design, ads, or marketing
You have a long-term publishing roadmap and want to launch with strong business systems
You’re collaborating with other authors or service providers and want legal protection
You simply want to be "official" from day one
If you're already thinking of your author career as a business, then structuring it as one from the start can be empowering. It allows you to open a business bank account, keep your finances clean, and start building a foundation that will grow with you.
How to Know When You’re Ready
The simplest answer? You’re ready to form an LLC when your author business begins to earn money and you want to treat it like a business.
Ask yourself:
Am I earning or expecting consistent income from book sales or related services?
Am I spending money on publishing and marketing?
Do I want to write and publish more books in the future?
Do I want to protect my personal assets?
Do I want to open a business bank account?
If you answered yes to most of these, it might be time to consider forming an LLC.
Where and How to Set It Up
Each state in the U.S. has its own process and fees for forming an LLC, so be sure to check your local regulations.
In general, you’ll:
Choose your LLC name (usually your author brand or a publishing name)
File Articles of Organization with your state
Pay the required state fees
Designate a Registered Agent (you or a service)
Create an Operating Agreement (required in some states)
Apply for an EIN (Employer Identification Number) from the IRS
Open a business bank account
If this feels overwhelming, don’t worry. You don’t have to do it alone. Many authors hire legal or financial professionals to walk them through the process. I used a business formation specialist who submitted all my paperwork and explained everything clearly. That gave me peace of mind and saved time.
LLC Isn’t the Only Option
Remember, an LLC isn’t the only way to structure your business. If you’re just getting started, you can operate as a sole proprietor; just be sure to track your income and keep good records for taxes.
Down the road, if you begin earning substantial income or want even more liability protection, you might also consider forming an S-Corp or consulting with a CPA about the best structure for your unique situation.
What About Taxes?
This is where things get real. Once you start earning money, you’re expected to pay taxes on that income. Having an LLC allows you to better track business expenses, set aside money for quarterly taxes, and possibly even reduce your taxable income through deductions.
Pro tip: Whether you have an LLC or not, talk to a tax professional. They can help you understand your obligations and save you from surprises come tax season.
You don’t need an LLC to be a real author, but once you start treating your books like a business, it might be time.
Don’t Let This Delay Your Dream
While legal and financial planning are important, they shouldn’t be the thing that stops you from sharing your stories with the world.
Start where you are. Track your income. Learn the ropes. And when the time feels right, take that next step and make it official. You can absolutely be a real author and run a successful publishing business, whether you form your LLC before or after that first release.
And if you're not sure what's best for you? That’s what strategy calls are for. I help my clients build strong, sustainable businesses around their books—LLC or not.
You don’t have to do it alone.
P.S. Letters From Story Flow is your bi-weekly resource for authors who are ready to grow their careers with clarity and ease—without relying on hustle-heavy strategies that don’t feel like you.
If you're ready to build a sustainable author business, connect with readers, and get expert guidance that actually meets you where you are, click here to join me!