Overview
This article answers common questions about Limited Liability Companies (LLCs) and tax requirements for publishing businesses.
Do US Residents Need to Set Up an LLC?
Answer: No, an LLC is not required
US residents can publish as individuals using their Social Security Number (SSN) as their tax identification number.
Key Points
You can publish without forming a business entity
Your SSN serves as your tax ID number
LLCs have both benefits and costs for publishing businesses
Consult with a legal professional to understand the implications for your specific situation
Other Eligible Countries
This same approach applies if you have a tax ID number from:
Canada
United Kingdom
Ireland
Do Non-US/UK/Canada/Ireland Residents Need an LLC?
Answer: No, an LLC is not required
You do not need to open an LLC to publish eBooks and print books on Amazon KDP (Kindle Direct Publishing), regardless of your country of residence.
Audiobook Publishing Considerations
Previous Requirements (No Longer Applicable)
Students previously set up LLCs to publish audiobooks on ACX (Audiobook Creation Exchange)
This approach is no longer advisable or possible
Current ACX Requirements
ACX now requires proof of residency in one of these four countries:
United States
United Kingdom
Canada
Ireland
Alternative Options for Other Countries
Third-Party Distributors
If you're outside the four eligible countries, you can still publish audiobooks using third-party distributors such as:
Author's Republic
Other audiobook distribution services
How Third-Party Distribution Works
Your audiobooks will still be published on Audible
No LLC formation required
Disadvantages of Third-Party Distribution
No promotional codes: You won't receive the promo codes that ACX provides (which are valuable for gaining reviews)
Lower royalty percentage: You'll earn less per sale compared to direct ACX publishing
Why ACX is Preferred
Higher royalty rates
Access to promotional codes for marketing
Direct relationship with Audible platform
How Should I Handle Taxes for My LLC?
Answer: Consult a Tax Professional. All tax-related questions should be directed to a certified tax professional.
Why Professional Guidance is Essential
Tax laws vary by jurisdiction
Business structure affects tax obligations
Professional advice ensures compliance
Maximizes potential deductions and benefits