Here is the free sampling of "Enough is Enough", CHAPTER NINE, BUSINESS REQUIREMENTS.
It covers the basic business requirements and practices for a new writer and are those which I comply and use. You can get everything an aspiring new writer needs to know by getting a copy--you will never regret it! Just go to the Order Books Tab.
Good luck and best wishes in your writing.
Rod J.
CHAPTER NINE
BUSINESS REQUIREMENTS
Congratulations! You now have your first published book in hand. Your work is not quite done if you are going to sell your book. If you are satisfied with having only your self-publishing company sell your book, then you really only need a marketing plan, which is covered in Chapter Ten. As I mentioned many times up until now, writing is a big business and you should treat it like a job. Since your writing is a business, the following are some business requirements to comply with and practices to consider:
FEDERAL AND STATE INCOME TAX. Whey you begin selling your book or receiving other monies under your book business, there are income tax requirements you must comply with since you are generating revenue. Even if your book is being sold entirely by your self-publishing company, you have to report your income when you file your federal and state income tax. From your self-publishing company, you will receive a MISCELLANEOUS FORM 1099 for your income made from royalities; a copy is also provided to the Internal Revenue Service. You will enter that amount on your return with all your other income.
ESTIMATED FEDERAL AND STATE INCOME TAX. Normally, if you have not paid additional federal or state income tax when you filed previously, you will most likely generate enough revenue from your book sales to create a balance due on your next returns. You should check your prior year's federal and state returns and see if you need to pay an estimated income tax. It may be in your best interests to pay the additional income tax quarterly instead of paying when you file your federal and state returns.
BUSINESS LICENSE. Most localities require a license for anyone conducting business. Normally, you would file for the license with your city or county. If you sell books at book fairs, shows at malls, and so on, you will most likely have to provide a copy of your license and state sales tax certificate, or whenever asked by any official to provide this documentation.
STATE SALES TAX. In most states, state sales tax is charged on items sold within the state, or by a business conducting sales outside the state. When you do your personal sales and other promotions, you will normally have to charge sales tax on each book sold. If your state is one that has a sales tax, you then must obtain a state sales tax certificate, which permits you to collect sales tax. The amount of money made from your sales will determine how often you will have to submit on the tax collected. Usually, for minor sales, the sales tax is submitted quarterly. If your sales are in the thousands of dollars, you will most likely have to submit your collected tax monthly. Your state sales tax office will determine when you should submit your collected sales tax. I had to submit my tax monthly until I established a sales base; if sales are not at your state's standard for submitting monthly, you should be notified to submit quarterly. The state of Virginia issues coupons books with the due dates and instructions for filling out and submitting the sales tax. This varies from state to state. When you file for the state sales tax, you will need to obtain a Federal Employer Identification Number (FEIN) from Internal Revenue Service. The FEIN is also needed when you file your federal and state income tax under business income.
SALES RECORDS. Set up files to capture your expenses and sales. Do not try to wait and capture this information when you file your state and federal income taxes, or when submitting your state sales tax. I record all expenses and sales as they occur, which makes it simple for filing my annual income taxes and submitting my state sales tax. This is your business and you have to manage and conduct is as such.
POST OFFICE BOX. To conduct your book business, I highly recommend getting a post office box to receive any mail and correspondence. Where you are living will determine the fee you will pay. In larger, populated areas, you will pay more for a box. Usually, the fee can be paid quarterly, semi-annually, or annually. Getting a P.O. box keeps your personal and business mail separate. Also, if you are advertising your books nationally and worldwide, you most likely do not want everyone out there knowing your personal address.
The following are other business requirements you should consider for your book business:
BUSINESS PHONE: Some authors get a separate phone to conduct their book business, while others manage without an extra phone. I do not have a separate business phone. All of my contacts are made through my website via email or my P.O. box. However, I do have a message on my home phone recorder telling the caller about my books and where they can visit my website.
OFFICE/BUSINESS SPACE. You need an office in either your home or a rented space. If your home has sufficient space, then you should start working out of your home. Besides your day-to-day work area, you need to have storage space to keep your inventory of books, office supplies, and all business related materials. At a minimum, you should have a PC with high-speed web connectivity, copier, fax machine, scanner, and phone. You can normally buy an all-in-one printer, which has copying, faxing, and scanning capabilities. I use all of these office conveniences daily.
LAPTOP COMPUTER. Most authors have laptops in order to show their presentations when they are guest speaking. I am from the old school and find that my desktop Dell suffices. I found that all schools, colleges, and businesses have all of the necessary AV capability for guest speakers. I have my presentations on a mini drive and take it wherever I go. I have found that loading my material on the drive is totally adequate. I do have hard copies of my presentation to hand out, just in the event there are technical difficulties with the on-site computer system. By the way, it is a lot easier carrying a mini-drive the size of a stick of chewing gum when traveling than a much heavier laptop computer. But for those who will write while traveling, a laptop is a must.
LEGAL ASSISTANCE. In operating your own buiness, you may find the need for legal assistance to prepare contractual documents, or if you have legal matters over your business. Most authors do not retain legal counsel and only obtain a lawyer when it is required. Be aware that sometime in your book business, you will require some type of legal assitance.
MARKETING SPECIALIST AND PUBLICIST. These services have to be performed whether you take it on yourself or hire others to do it for you. These requirements will be discussed in more detail in Chapter 10.
You may find yourself facing other business requirements but the ones I covered are the most common. When I first read through my list of business reuirements to begin my personal book business, I almost stopped dead in my tracks. Do not let a few requirements stand in your way of doing what you set out to do. If I could do it, you can do it. "Achieving is Believing!"
(NOTE: There are two pages entitled, "MY NOTES", which are included at the end of each chapter so the reader can make his/her notes conveniently on that chapter. Those pages are not included in this sample chapter.)
