Anyone launching a business in India should know that there are over 19,000 publishing firms there, according to the Federation of Indian Publishers. Hindi and English make up about 50% of published books in India, with the remaining books written in the other official languages recognised in this nation (24 languages at a national level). The primary methods for incorporating a publishing firm can be discussed with our team of advisers for company registration in India.

The benefits of starting your own publishing company

Let's take a closer look at the advantages to help you decide if now is the appropriate time for you to launch your own publishing company.

Air of professionalism

Although self-publishing is a significant achievement in which one should take pride, many libraries and bookshops will not stock their shelves with titles that authors unmistakably publish. Additionally, readers frequently choose to stick with books that have been reviewed by publishers and are less likely to buy an obviously self-published novel. This naturally results in their missing out on some fantastic books!

The author's name is mentioned as the publisher is one of the most obvious signs of a self-published book. To give your book a more "professional" feel, you could use the name of your new publishing business as the imprint, such as Reedsy LLC or Reedsy Publishing.

Tax benefits

What distinguishes your publishing activities from a company in the eyes of the IRS? So, if it's a pastime, you can only deduct those costs from your writing revenue. On the other hand, you might be able to deduct writing and publishing-related costs from your non-writing revenue if they view those activities as a company.

The IRS supports entrepreneurs by expecting that new companies would lose money right away and allowing them to use tax credits to offset such losses. It's important to function as a business and to demonstrate that you are doing so with the intention of turning a profit if you want to take advantage of the tax incentives the IRS offers.

Protection from liability

Independently published authors being sued is not a common occurrence. However, the fact that your personal income and assets are secured when you incorporate or form a firm like an LLC should reassure writers who seek further protection from any crumbling cookies.

The ability to grow your brand

Unify independent writers? It's a good idea to seek outside of your own list of titles and produce new books that appeal to comparable readers if you've already established the infrastructure (a mailing list, sales on Amazon, etc.). Without having to do all the writing yourself, you can use the time you spent starting your business and learning about marketing to grow your brand and sell more books. Of course, this entails additional obligations for royalty payments.

Author Joseph Alexander developed his own publishing company in this manner (and became a self-published millionaire in the meantime). Joseph spent a significant amount of time developing his online presence and learning about branding while authoring and publishing a number of nonfiction books about playing the guitar. His sales started to soar, and other musicians started to approach him about writing and publishing their own books. "We divided the profits 50/50," explains Joseph. My publishing company expanded, and they received excellent royalties. Fundamental Changes, his publishing house, now has a long record of best-selling books to its credit.

How to start a publishing company

There are a few T's, and I's to cross, and I's to dot to give your firm the best opportunity for success before you fire up the presses and take the publishing world by storm. Here is a quick seven-step procedure for creating a publishing company:

1. Set goals for your publishing company

It is not a task to be taken lightly because it demands authors to develop as entrepreneurs in their own right. Here are some inquiries to consider if you're thinking about it:

• What made you decide to launch a publishing business?
• What types of books are you interested in publishing?
• Will you simply publish your own books or also those by other authors?
• What kind of income do you anticipate this firm will generate?
• How do you anticipate your company developing during the coming year? 5-year period? A decade?

Before you begin, you should be able to confidently and easily respond to these questions because they will influence your company's choices.

2. Choose a business structure

We know, we know—why don't we just get to the exciting bit, like picking a name for the business? Not yet; some necessary preparation must be done first, such as determining precisely what kind of business you want to launch.

Businesses can take many different forms. The following are the primary options for publishing in the majority of regions:

Sole proprietorship: a company run and owned by just one person. The most straightforward business structure, but not without risk (keep reading).

Corporation: a team of individuals or an institution with the power to run the business as a single unit. A more intricate business document.

Partnership: A business management and operation agreement is made between two or more parties.

LLC: Combines flexibility and pass-through tax benefits of a partnership or sole proprietorship with the asset protection that a corporation enjoys (business taxes can be paid through a person's personal tax return).

As the group's most adaptable and straightforward company structures, LLCs and sole proprietorships are how most authors will choose to launch their own publishing businesses. However, we personally advise that you register as an LLC. As was already noted, LLCs provide the greatest liability protection, shielding your personal assets from any debts created by the company.

3. Pick a business name

It's time to celebrate after all that business chat by christening your publishing company! The following considerations should be made when choosing a name:

Branding: What industry or market are you aiming for? What categories does your company publish in? You may improve your company's brand with the help of these inquiries, and your company's name should reflect that. Pick a name that reflects that if you intend to publish middle-grade fiction predominantly. Examine the names of competing publishing houses to gain a feel of how their brands are represented by their names.

Relatability: Our world moves quickly; thus, your chance of holding someone's attention throughout the allowed time is slim to none. Therefore, it pays to be judicious when choosing a name and to choose terms that readers would be familiar with. Ask yourself what, if anything, a made-up phrase will initially communicate to people if you actually want to use it.

Don’t use the word “Inc.” Unless you have a firm intention to incorporate your company

Obtain your Employer Identification Number (EIN)

Once you've chosen a name for your company, you must register it with the government. This is a nine-digit number that the IRS gives out and contains details about the state where the company is registered. Consider it to be somewhat similar to your company's social security number. Find out more here.

4. Open a business bank account

You can open a company bank account and keep your personal and business funds separate after you've been issued an EIN. This will guarantee that your private assets are safeguarded in the event of litigation (knock on wood, this is simply a precaution!) Additionally, it will make filing your taxes simpler for you.

5. Set up an accounting process

Stop yawning—this is a crucial stage that shouldn't be skipped! Setting up your bookkeeping procedures correctly from the beginning is crucial, regardless of whether you're using a free tool like Google Sheets, a commercial product like Quickbooks, or hiring a professional to handle your accounting. It will ensure you have a record of all expenses that will be useful for tax write-offs and enable you to monitor which of your efforts are yielding results.

6. Create a company website

It's likely that people will Google your business when they want to learn more about it. The greatest technique to gather those interested leads and inform people more about your company is through your website.

Although you might be tempted, adding a page to your author's website is bad. Even if it first simply publishes your work, your publishing firm should ideally have its own public identity and branding. This is the way to go if you want to project a sense of professionalism.

7. Grow your team of publishing professionals

Much specialised work, including editing, cover design, interior formatting, web design, marketing, etc., goes into launching successful titles. Fortunately, you can use internet markets (like Reedsy!) to hire those services, and you don't have to spend a fortune doing so. Today, one of the advantages of beginning a publishing company is that you may operate fairly leanly without being constrained by a head count by developing a network of trusted freelancers.

Conclusion:

We hope that this information will assist you in determining whether establishing a business is the best course of action for you and, if so, how to start a publishing firm that is successful straight away.