As an author, you’re not just writing books—you’re running a business. Whether you’re self-published, traditionally published, or somewhere in between, it’s worth thinking about how to structure your business to protect your work, organize your income, and support your long-term goals.

One of the most common questions I get from authors is:
"Should I set up an LLC?"
The short answer? It depends. But for many authors—especially those self-publishing, freelancing, or building a multi-stream author business—forming an LLC can offer clarity, protection, and professionalism.

Let’s break it all down.

What Is an LLC, and Why Should Authors Care?

An LLC (Limited Liability Company) is a legal business structure that separates your personal assets from your business income and responsibilities. It's one of the most common types of small business entities in the U.S.

Key benefits of an LLC for authors include:

Liability protection: If something goes wrong in your business (like a contract dispute or financial issue), your personal assets—like your house or car—are usually protected.
Professionalism: Operating under a business name, issuing invoices, and signing contracts as an LLC gives you more credibility in the eyes of clients, collaborators, and readers.
Financial clarity: Having a separate bank account and EIN for your business helps you keep track of income and expenses—making tax time so much easier.
Tax flexibility: Depending on your setup and income, you may be able to elect how your LLC is taxed (as a sole proprietor, S-Corp, etc.), which can have financial benefits down the road.

When Should You Consider Starting an LLC?

If you’re making money—or planning to—from your writing, it’s worth considering.

Some signs it’s time to explore setting up an LLC:

You're self-publishing and selling books directly
You offer services (coaching, speaking, editing, consulting)
You’re earning consistent royalties or freelance income
You want to protect your pen name or brand name
You’re starting to work with contractors (like cover designers or editors)
You want to grow your business or apply for business loans or grants

Even if you’re not bringing in six figures (yet!), forming an LLC is about building a strong, protected foundation from the start.

How to Set Up an LLC (Step-by-Step Overview)

Each state has slightly different rules, but the general process looks something like this:

1. Choose Your Business Name

Make sure it’s not already in use in your state. Many authors use their pen name or a related brand name (like “Story Path Publishing LLC”). You can search for existing business names via your state’s database (e.g., SunBiz in Florida).

When choosing a name, complete a simple Google search to see if anything comes up for the name that could impact your searchability. You want to make sure there isn’t a URL/domain associated with the name that is already claimed. It’s also a good idea to check social media to see if anyone has already claimed a version of your business name in their username.

2. Designate a Registered Agent

This is the person or company who receives legal documents on your business’s behalf. You can often be your own agent, but some authors choose a registered agent service for privacy.

3. File Articles of Organization

You’ll submit a form and pay a filing fee to your state (usually $50–$200). This form outlines your LLC’s name, structure, and address. After your business is registered, you will be required to pay an annual filing fee to basically notify your state that your business is still operational, even if you’ve not collected income through it. It’s important to update your state each year so your business can remain in good standing and you don’t end up forfeiting your business name—if you stop using it, someone else can take it!

4. Create an Operating Agreement

Not always required, but highly recommended—even for single-member LLCs. It explains how your business will be run and can help protect your legal standing.

5. Get an EIN from the IRS

This is your business’s Employer Identification Number, used for tax purposes. It’s free and easy to get on the IRS website.

6. Open a Business Bank Account

Separate your business finances from your personal ones. This makes accounting easier and supports that liability protection. See my resources page for financial organizations I recommend using.

7. Check for Local Business Licenses

Some cities or counties require an additional business license or registration—especially if you’re selling directly.

Need Help? You Don’t Have to DIY Your LLC

Setting up your LLC doesn’t have to be overwhelming—or something you do alone. There are professionals who specialize in helping small business owners (including authors!) form LLCs and make sure everything is submitted correctly.

You can work with:

Business formation services that operate locally or understand small business laws in your state
A local accountant or tax advisor who understands small business laws in your state
A consultant who offers setup packages and can walk you through the paperwork step-by-step

Personally, I hired someone to guide me through the process—and I’m so glad I did. She handled my state filing, EIN setup, and helped me double-check everything. It saved me hours of confusion and gave me peace of mind knowing my business was set up the right way.

If you're not sure where to find help, try asking other authors in your network, posting in author Facebook groups, or looking for local small business support organizations. Investing in a little guidance up front can make everything smoother—and let you stay focused on your writing.

FAQs from Authors About LLCs

Q: Do I need an LLC to publish books?
No—you can publish under your own name as a sole proprietor. But an LLC gives you more protection and structure, especially as you grow.

Q: What if I use a pen name?
You can still form an LLC under your real name and file for a DBA (Doing Business As) to operate under your pen name.

Q: What if I live in one state but travel or sell books everywhere?
You’ll form the LLC in your home state, but you may need to file as a “foreign LLC” in other states if you’re doing business there extensively (this is more rare for authors unless they run physical bookstores or tours).

Your Business Structure Is Just the Beginning

Forming an LLC is a great step—but it’s just the beginning. Don’t stop at the paperwork. Set up:

A bookkeeping system (like Wave, QuickBooks, or a spreadsheet)
Business email and website
Project management or content planning tools
Regular CEO check-ins to review finances, goals, and capacity

Think of your LLC as the outer shell that protects and supports your author career. What you build inside that shell—your systems, content, offers, and relationships—is what makes the magic happen.

Make Your Author Business Work for You

There’s no one-size-fits-all path for authors. That’s what makes it beautiful—and sometimes confusing. But setting up an LLC can be a powerful move toward taking yourself (and your writing) seriously.

You don’t need to do it on day one. But when you're ready, it’s a smart step toward sustainability, peace of mind, and long-term growth.

And if you need support, guidance, or just someone to walk you through it? I’m always here to help you build a writing business that works for you—not the other way around.

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!

LLC for Authors: Why Writers Should Start an LLC and How to Set It Up

What Is an LLC, and Why Should Authors Care?

When Should You Consider Starting an LLC?