A limited liability company or LLC is a business structure that is attractive to authors because it is simple to form and maintain and offers a lot of flexibility. For authors, forming an LLC under which to publish their works is an excellent way to protect their personal assets, enjoy various tax benefits, and ensure privacy.
Any new business venture must be structured as one of several legal business entities:
The business entity you choose for your writing business will dictate:
Each state has specific requirements for forming and maintaining a business entity within that state. But, regardless of the state in which you form your business, one of the most beneficial choices of business entities for authors is the LLC.
An LLC has several features that make it desirable for authors:
Taxes are one of the most complicated aspects of doing business and there are serious consequences for failing to pay them. LLCs offer a lot of flexibility when it comes to how they are treated for tax purposes, which you can use to your benefit.
For federal tax purposes, the IRS will ignore your LLC and tax you as an individual. In other words, your LLC's income will be reported on your personal tax return at the end of the year.
If you are a multi-owner LLC, the LLC will pay no income tax and all of its profits and losses will pass through to its owners, who will report their portion of the LLC's revenue on their individual tax returns.
Furthermore, while these are the default tax options, you can also elect to have your LLC taxed as a C-corporation or an S-corporation.
Since they are usually pass-through entities, LLCs do not pay state taxes. Instead, state taxes accrue to the individual owners of the LLC. That being said, there are certain kinds of taxes that an LLC may be required to pay in some states. These include:
You should consult with a Wyoming business or tax professional for details about how this relates to an LLC formed or operating in Wyoming.
LLCs are formed at the state level. To officially form an LLC you must file paperwork with the state's secretary of state.
When you file your paperwork with the state, they will ask you to list a registered agent, who will receive mail and official documents for your LLC. Your registered agent can be a member of your LLC or a hired professional service.
One of the biggest advantages of using a hired service for your registered agent is privacy. A professional service will provide your LLC with a level of privacy and anonymity by keeping your personal name and home address off of any of the LLC's contact information.
There are many reasons why you may not want your personal name and address associated with your works of authorship. Using a professional service as your registered agent is an easy way to accomplish this.
You can never completely prevent problems from occurring, but to prepare for the worst and to protect yourself and your business, forming an LLC is a good idea for authors due to its flexibility and simplicity.
An LLC offers an author the limited liability of a corporation and the pass-through tax benefits of a sole proprietorship or partnership, along with being simple to maintain. To learn more about forming and maintaining an LLC in Wyoming contact an experienced Wyoming business consultant.
Form a wyoming llc
Wyoming was the first to allow limited liability companies in the United States. It continues leading the country and world to this day. Anonymity, charging order protection and single member LLC protections are just some of the reasons people do business in Wyoming.
Wyoming increasingly competes with traditional offshore providers. Self-settled trusts, private trust companies and more are achievable using a Wyoming situs.
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FORM A WYOMING CORPORATION
Wyoming has no corporate income tax, does not dislcose officers or shareholders and does not charge spurious fees (unlike Nevada). These benefits have led Wyoming to become the incorporation leader in the US.
WYOMING REGISTERED AGENT
Every company must maintain a registered agent. For anonymous companies, the agent serves as the public face of the company. We personally act as the agent for only $49 per year.
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Does your company receive mail, but you're not in Wyoming to collect it? We can scan your mail for you to the client portal.