Self and Small Published Author Part Time

I am an author who is self-published, as well as has been and will be published
by small presses. This brings in a small amount of income, and I foresee it
bringing in a little more as the future unfolds. Likely less than 1000. It’s a
hobby, but I spend 10-12 hours a week working at it and do make an income that is
taxable. I have no current plans to do this full time. Are there any legal or tax
benefits to getting a DBA or LLC for this?

Asked on March 17, 2018 under Business Law, Utah


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

An LLC is typically (especially for small ones) set up as a "disregarded entity" and therefore has the same tax treatment as a DBA. It is a little easier to justify business expenses and track them with an LLC since you can have a separate credit card, bank account, etc. for the LLC, keeping business expenses separate from personal--therefore, it may be easier to take business deductions.
The main advantage of a "limited liabilty company" is that it limits your personal liability: it would help protect you personally from any business debts (e.g. a business loan) or liability (from, say, breaching or violating a contract; or if a book, etc. you publish defames anyone). It is generally a good idea to conduct business through an LLC for this reason.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.