Fundamental Business Best Practices (Business Structure, Copyright, etc.)

This best practices post is a component of the PIP Program which is being developed with the intention of combating any mainstream stigma associated with self, or independent, publishing that exists in the market place.

We have created this post to gather input on criteria associated with this topic and its place within the PIP certification process.

We would like to encourage you to contribute your opinion, advice, and expertise on this subject, as a way to help the independent publishing community establish a qualitative process of evalutation for the PIP Program.

If you are interested in contributing to other topics associated with independent publishing, please visit the PIP index and do not hesitate to participate by contributing to those topics that are of interest to you:http://www.spannet.org/page/pip-input-criteria

To read, or critique, the current PIP statement of purpose, visit: http://www.spannet.org/group/PIPcertification/forum/topics/pip-stat...

Tags: Best, Business, Copyright, Fundamentals, Independent, PIP, Practices, Publishing, Self, help, More…professional

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Permalink Reply by Pavarti K. Tyler on June 27, 2011 at 7:30am

In order to qualify as a business it's essential that the indie/small publishing company run like one. While obtaining and EIN number is ideal you can run a small business under your name (or even a DBA). The reasons for this are many but 2 stand out to me as essential:

Liability Umbrella - if for some reason you were sued the separation of money and liability from the publishing company may mean the difference between someone taking the 100 books in your basement vs. your house.
Tax Law - Small businesses like this are audit bait. To establish the business as a separate entity from the individual will make tax laws easier to comply with and easier to defend.

I would like to see all Indie Publishing companies have at least an LLC/LLP, and EIN number and books dedicated to the business. This would ensure that everyone is complying with tax law (to the best of our knowledge) and by having books (this can be an excel spreadsheet) detailing the income and expenditures shows the intention to run a professional and transparent operation.

Permalink Reply by Brad Poulson on July 26, 2011 at 11:10am

Excellent advice and recommendations, Pavarti!

For additional information:

Here is a link to a discussion on SPANnet about filing as a Limited Liability Company (LLC): Forming an LLC

Here is a link to the for information about LLC filings and more in the state of Colorado: http://www.sos.state.co.us/biz/FileDoc.do

Thanks for your participation!

Brad Poulson