Can You Just Start A Publishing Company?
This entry was prompted because I’ve come across it more than once. Three times, to be exact, so I figure it’s worth blogging about–
Authors and starting their own publishing company.
This is the approach to publishing I strongly advocate in Getting Down and Digital: How to Self-publish Your Book. It’s my opinion that taking the time to set up a publishing business the proper way opens doors to taking your self-publishing career in multiple positive directions, on-line and off-.
However, on three separate occasions I’ve seen authors simply “start companies,” that is, just making up a business name and start and/or plan to publish under it without registering it through the proper channels.
While the nuances of business start-up rules vary country to country, state to state, province to province, if a person wants to start a company, there is a certain way to go about it because each industry functions on different rules of trade and sales depending on where you live.
When I started Coscom Entertainment and any if its imprints, I had to go to the Companies Office downtown, fill out paperwork, explain what my business was and pay a fee. This was in Winnipeg, Manitoba, Canada.
I know from speaking with other Canadian and US publishers that they, too, had to go through a formal procedure to get their company up and running.
But I have also seen authors pull a company out of thin air and aim to start using it. I don’t know if this is simply because they don’t know any better or if it’s because of all the Kindle talk that people think all areas of publishing are free and one can do whatever they want when it comes to it. Or maybe, like most writers and artists, money is hard to come by so they want to do things as cheaply as possible and free is about as cheap as it gets. Perhaps it’s the Internet mentality because a lot of people view the Web as a “place to get stuff free” so why not start up a company for free, too? The problem with this kind of free is it’s unethical. Why create the groundwork of your career on something that’s wrong? It’ll only lead to problems down the road.
The publishing industry is changing, this is true, and things are not what they used to be–and this extends past the whole eBook thing–but other things have remained, and that is the need to properly start a business if setting up a publishing house is part of your self-publishing plan.
If you’re not sure what to do, pull out your phone book and look up your local Companies Office. Tell them what you plan on doing–publish books–and they’ll let you know what you need to do so that if your business is ever looked into, you can produce the proper paperwork that states you are allowed to run your business whether out of your home or an outside office. Likewise, when it comes tax time and you claim your writing income, claiming it under a company might work to your advantage in terms of write-offs. Talk to an accountant about this as the rules vary place to place.
In the end, if you wish to self-publish via your own imprint, part of the deal is registering that imprint with the proper authorities.
Start your career on the right foot. It can only payoff in the end.