How to Form a Publishing Company
Owning Your Own Business can Give You Power and Control
Nov 12, 2008
No one will ever know how many books have been written that have never seen the light of day. Too many dedicated writers spend countless years writing their hearts out and never experience the thrill of holding their creation in their hands in book form, or know the joy of sharing it with others.
Self-Publish
Self-publishing has long been an American tradition. Many famous writers self-published, including Edgar Allen Poe, Henry David Thoreau, Mark Twain, T.S. Eliot, e.e. cummings, John Audobon, Benjamin Franklin, Zane Gray, Louis L'Amour and Virginia Woolf. More recently, James Redfield, John Grisham, and Pat Conroy were self-published writers. The point is, the self-published writer is in good company, so don't think for a minute that self-publishing is "not real" or is in any way inferior to "traditionally published books." Self-publishing is American through and through.
Form Your Own Publishing Company
This is not as difficult as it sounds. The most difficult part, in fact, is coming up with a great company name. Then you must decide the form of your business. Will you be a sole proprietor? Form a corporation? A partnership? Being a sole proprietor is the easiest and requires virtually no paperwork.
You'll need a business license. If you’re using your home as your "business office," be very careful that you clarify that people will not be coming to your address to buy books. Most neighborhoods are not zoned for businesses. Describe yourself as a freelance writer/author or publisher, not a book seller. Business licenses are not expensive and are usually renewed on a yearly basis. You may need a resale permit if you live in a state that has a sales tax. This is not expensive or difficult to obtain.
For good measure, design a letterhead on your computer and have some business cards printed up. You’re now in business. It’s even better, though not mandatory, if you can open a checking account for your company. Open with the minimum amount of money required if needed.
The benefit of going through these steps is that practically every expense involved with getting your book into print is now, as a sole proprietor, tax deductible.
Subcontracting or Do it Yourself
As a publisher, which you now are, there are many options available for getting your book into print. Will this book be printed by a local printer, a printer elsewhere, or by using online resources?
Many would-be publishers are often surprised at how many unexpected expenses arise when getting a book published. For example:
- Who will do the layout and formatting of the book? (You can.)
- Who will do the cover?
- Who will distribute the book? (You can be your own distributor!)
Ideally, for starters, you should buy a bundle of ISBNs and list your book with Books in Print through Bowker. (Technically, ISBNs are not a requirement, but if you ever want the opportunity to sell your book in a bookstore, through Amazon, or online with Barnes and Noble et al, an ISBN will be required.)
The more work you can do yourself, the cheaper the book will be to get into print. This will require some homework, and each person’s decisions will be different.
Resources for Self-PublishersThese and many other issues may arise during the course of completing the project. Fortunately, there is a wealth of information available to help guide you through these decisions. A good resource for this is Tom and Marilyn Ross’ The Complete Guide to Self-Publishing or Dan Poynter’s The Self-Publishing Manual. Just remember, the more work you hire other people to do, the more costly the book will be. As a business person, you need to pursue this project in a fiscally conservative manner and look at the bottom line. Don’t scrimp when it comes to hiring a good editor, however.
Benefits of Owning Your CompanyHaving your own company and paying taxes is more cumbersome, certainly, than selling the book under the radar or just getting it printed by a vanity or subsidy press. You will find, however, that many book selling events will be unavailable to you if you are taking money under the table and not a legitimate business person. Not having a business license or being legal also keeps you from growing and becoming as successful as you can be.
Operating a legitimate business also enables you to join organization like your local Chamber of Commerce. Membership in professional organizations like the Chamber or various publishing groups will not only help you market and sell your books, but also provide excellent learning opportunities. In addition, it’s a great way to network and meet people who may offer the very services, at a professional discount, that you require.
Have Confidence and Believe in Yourself
Take a look again at the self-published authors listed above. Know that each of them was rejected, some many times, by traditional publishing houses. By becoming their own publisher, however, they found success. There’s not a writer listed whose name most people wouldn’t recognize. They didn’t become famous by burying their manuscripts in the back of the closet or waiting for a miracle. They made their own miracles, and so can you.
