A Decision-Preparation Guide for Authors
The Authors Success Center cannot determine which business entity is right for an individual author.
We can help you prepare for a meaningful conversation with an attorney, CPA, or other qualified adviser.
An Artist Company may deserve further investigation when an author is building a substantial creative enterprise rather than simply publishing an occasional book.
An A-Corp May Be Worth Exploring When:
- You own multiple books or a growing catalog.
- You are creating a publishing or production company.
- Several artists are collaborating on shared intellectual property.
- You are developing film, audio, theatrical, educational, or merchandise rights.
- You are seeking outside funding.
- You want artists to retain voting control.
- You want the company to have a legally stated artistic mission.
- You want detailed rules governing intellectual property.
- You are planning for long-term growth or succession.
It May Be More Than You Need When:
- You are publishing a single book with limited commercial activity.
- You have no collaborators, employees, investors, or complex licensing plans.
- Your existing sole proprietorship or LLC adequately serves your needs.
- You are not prepared for multistate administration.
- Formation and maintenance costs would outweigh the likely benefits.
- You have not yet organized your copyrights and contracts.
- You are seeking the structure mainly because it sounds prestigious or new.
Questions to Answer Before Meeting an Adviser
About your work
- Which works do you own?
- Are any works jointly authored?
- Are any rights controlled by a publisher?
- Have audiobook, translation, or adaptation rights been licensed?
- Do illustrators, narrators, designers, or collaborators have ownership claims?
About your business
- Do you already operate through an LLC or corporation?
- Is your writing income separated from personal finances?
- Do you maintain business records?
- Do you have appropriate insurance?
- Are you operating in more than one state?
About control
- Who should make creative decisions?
- Which decisions require unanimous approval?
- Could investors vote on artistic matters?
- What happens if an artist leaves?
- What happens if collaborators disagree?
- Can ownership interests be sold?
About intellectual property
- Would the company own the copyright?
- Would the author merely license it to the company?
- Would the license be exclusive?
- Can the author terminate the license?
- What happens if the company dissolves?
- What happens if the company owes money?
About the future
- Who inherits the author’s ownership interest?
- Who manages the creative work after the author’s death?
- Can heirs make creative decisions?
- Will a literary executor be appointed?
- Should archives eventually be donated?
A Practical Starting Point
Before selecting any business structure, complete these three tasks:
- Create an inventory of your creative assets.
- Gather every publishing, licensing, collaboration, and service agreement.
- Write down your long-term business and legacy goals.
You cannot select the proper structure until you understand what it will own, license, manage, or protect.