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This is your friendly friend who has been self-employed for over a quarter century, telling you to set up an LLC for your writing. 
For those in the US, itâs as easily done as visiting your Secretary of Stateâs website. Some states allow you to file online forms, others require you to mail paperwork in. Fees vary. In MO, it was $50 to set up a single owner LLC. In CA, itâs $75.
And if itâs single owner LLC, and you donât have employees, partners, or assets in trusts, you neednât file for an EIN, although if you donât want to use your social security number as your tax ID, you definitely can still get one. Itâs free, through the IRS.
You really should have a separate LLC for each business venture. I have one for my writing and one for my photography business. A separate bank account to deposit your earnings and pay out any expenses is a good call, too. Pay yourself by transferring funds to your personal acct.
These transfers are called âowners drawsâ and itâs the money you can use for personal spending/personal bills. It can really help you track your money. In other words, donât pay for cheeseburgers out of your business acct unless you are traveling for said business, etc.
If you can swing a Quickbooks subscription and training on how to use it, itâs a really valuable skill to have. Most of the time when you are trad published, youâll get payouts from your agency and be issued a 1099 at the end of the year, so how you manage that money is up to you
You are a small business owner if you are a writer, no matter if you are trad-published or self-published.
