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

Answers:

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.


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