Your own self-publishing company

Once you’ve decided to pursue self-publishing you’ll need to decide how your business will be formally organized and how you’ll meet your tax obligations. As your business grows you should periodically revisit the question of what is the best form of organization for your business.

Call your county government headquarters to ask what types of business permits and licenses are required in your jurisdiction. Some cities, counties and states require any business to get a business license. For example, if you are operating your business in a residential area, your local government will likely require a “home occupation permit” or a zoning variance. With a zoning variance, you’ll probably be required to promise that you won’t have walk-in clients.

As long as you don't have employees going in and out the front door this shouldn't be a problem.

If you are conducting your business under a trade name you should file a “fictitious name” certificate at your county or state government office. This is so people who deal with your business will know who the legal owner is. This is also known as a DBA name (Doing Business As) or an “assumed name.”

It's a popular saying that the Internet is a “tax-free zone.” But this does not apply to state sales taxes. If you have direct sales, you’ll need to pay state sales taxes on orders you ship to customers in your state. To pay the tax you’ll need to open an account and obtain a “resale license” (in some cases they are known as resale numbers or sales tax certificates.)

You don’t collect state sales tax on orders shipped outside your state. Internet sales (as well as fax, telephone, or mail-order) sales from another state aren’t subject to sales tax, unless you have an office or warehouse in that other state. In some states, shipping and handling fees are not subject to tax.




New in paperback: The Home-Based Bookstore: Start Your Own Business Selling Used Books on Amazon, eBay or Your Own Web Site (by Steve Weber)