Skip to main content

LLC and Taxes

Your common LLC and Tax questions answered

landon.mccaig avatar
Written by landon.mccaig
Updated this week

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Previous Requirements (No Longer Applicable)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

Did this answer your question?