The business side of being an author

[TJ]

There is a lot of information about editors, book covers, and betas but there isn't any info about the business side.

I have some questions like should I open a business account like an LLC or an DBA? How about taxes should I pay them quarterly or annually? I know a CPA can easily answer these questions however at this time I cannot afford one. So I looked into business software and my search left me more confused then before. So does anyone have any advice for first time author? I just need to be pointed in the right direction.
Thanks ,
TJ

[Rube]

Great question TJ. I wish I had answers for you. I hope they come soon so I can learn right along with you. Thanks for putting the question out there. I'll let you know if I find anything-Rube

[D.C.]

I don't think the business account is necessary unless you are opening a publishing concern, in which case you should incorporate. I just have my royalties go directly into my household accounts. You will get tax statements at the end of the year from the vendors you sell through, and I believe (but will double check when I get my taxes done) that you need to file a schedule C if you make more than 600 dollars.

[Alison]

I'm an accountant and tax preparer in my 'day job'. I wrote a post for a writing blog on this very subject. One thing I forgot to include on the post was Estimated Taxes. Depending on how much you are earning on your royalties you will have to file estimated taxes quarterly or pay penalties when you file your taxes.

Here is the link to the post. If you have any further questions please feel free to pm me.

http://thewritersguidetoepublishing.c...

Hope this helps
Alison

[TJ]

Wow Allison you are a God send! So much info I the site. The article you wrote hit it on the head. It

[Alison]

You're welcome, TJ. Glad it helped :-)

[Rube]

Thanks for the information and the site.