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DO I need a business to write a book?

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A

ataylor123

Junior Member
State: Nevada

Hello,

My name is Alan and I am currently a novel writer in Nevada. My partner and I are planning on publishing our first novel electronically. Our partnership is 55/45, and I am curious if we need to form any kind of business, LLC, or anything to complete this venture.

I am asking because for tax purposes and such, I assume I cannot just publish the book and get 100% of the earnings, and just give 45% to my partner as a "gift."

What is the best way to go about doing this?

Thanks in advance for any comments.
 


LdiJ

LdiJ

Senior Member
ataylor123 said:
State: Nevada

Hello,

My name is Alan and I am currently a novel writer in Nevada. My partner and I are planning on publishing our first novel electronically. Our partnership is 55/45, and I am curious if we need to form any kind of business, LLC, or anything to complete this venture.

I am asking because for tax purposes and such, I assume I cannot just publish the book and get 100% of the earnings, and just give 45% to my partner as a "gift."

What is the best way to go about doing this?

Thanks in advance for any comments.
Click to expand...
You are automatically a partnership. You can set up an LLC if you like. If you are not going to be equal partners, then an LLC would be a good idea.
 
A

ataylor123

Junior Member
I am really confused on LLC's.

My long time friend and I are planning to write a book together. The cut is 55/45.

There is no issue with trust between us, I am just confused about how to handle the money.

Do I need to form a business entity?

Lets assume I make $1,000,000 in profits from selling books. His cut would be 450,000 before taxes, I assume I cannot just hand over the money to him right?

If it is just as simple as that, then that would be better.
 
quincy

quincy

Senior Member
You don't necessarily need to form a business. What you do need to have is a written contract outlining the terms of your agreement.

Having an attorney draft the contract for you, so that all that needs to be included is covered, would be wise and is advised.

As a note: Whenever there is money involved, trust will always be an issue, even between friends. ;)
 
FlyingRon

FlyingRon

Senior Member
I agree with quincy. A written partnership agreement is the solution. You'd have to work out similar details even if you were to form an LLC. Frankly, I don't see how an LLC will be particularly beneficial to you and really their are other implications to creating corporate entities that may outweigh any transient benefits.
 
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