LEGAL and BUSINESS CONSIDERATIONS - Arabella Sheen

WEEK SIX – LEGAL and BUSINESS CONSIDERATIONS

The words have been written and the story told. Congratulations on completing your novel! That’s a huge achievement. Now that the manuscript is done, here are some key steps an author should consider doing next:

1. Revision and Editing

2. Decide on a Publishing Path

3. Build Your Author Platform

4. Marketing and Promotion

5. Legal and Business Considerations

6. Plan Your Next Steps

 

Over the next couple of weeks, I’ll be posting several blogs that cover these steps in more detail, and I hope they'll be useful to you.

Happy writing…

Arabella Xx

 

Authors are not just creatives; they also become small business owners and rights holders, especially if they self-publish. Whether traditionally published or indie, here are the key legal and business considerations authors should keep in mind:

1. Copyright Ownership

You automatically own the copyright to your work the moment you write it.

In most countries (including the U.S.), you don’t have to register your copyright, but registering:

Provides legal proof of ownership.

Allows you to sue for damages if someone steals or plagiarizes your work.

Consider registering your copyright with your national copyright office (e.g., U.S. Copyright Office) when your book is ready for publication.

 

2. Contracts (Traditional Publishing & Freelancers)

If you’re:

Traditionally publishing, you’ll sign:

A publishing contract outlining rights, royalties, delivery timelines, termination clauses, and more.

Possibly an agent agreement (typically 15% commission on earnings).

Self-publishing, you may still need contracts with:

Freelancers (editors, designers): Ensure you retain full rights to your content, especially your cover and interior files.

Collaborators (co-authors or ghostwriters): Spell out ownership, revenue split, and responsibilities in writing.

Never sign a contract without reading it carefully or consulting a publishing lawyer or agent.

 

3. Business Structure

If you intend to make regular income from your writing, consider creating a business entity:

Sole proprietorship (default in most places).

LLC or limited company: Offers liability protection and potential tax advantages.

Business license: Some localities require a license to sell goods (including books).

Check your local/state/province laws to see what’s required where you live.

 

4. Taxes and Accounting

As an author, your book income is taxable. Consider:

Tracking income and expenses: Keep records of sales, royalties, marketing costs, software, travel, and home office expenses.

Estimated taxes: You may need to pay quarterly taxes if you're earning steadily.

International sales: Be aware of foreign tax withholding and treaties if you sell globally.

Tools to help:

QuickBooks, Wave, or Excel for accounting.

PayPal and Stripe for online sales tracking.

Consider talking to an accountant with experience in creative businesses or self-employment.

 

5. ISBNs and Imprint

ISBN (International Standard Book Number):

You need one for each format of your book (e.g., ebook, paperback, hardcover).

You can use free ones (from Amazon KDP), but the retailer becomes listed as the publisher.

To control your publishing brand, buy your own from your national ISBN agency (e.g., Bowker in the U.S.).

Imprint name: Optional, but professional. It becomes your publisher name on record.

Buying your own ISBNs is best for long-term control and branding.

 

6. Intellectual Property and Subsidiary Rights

Your book has multiple potential revenue streams:

Primary rights: Publishing the book itself (print, ebook, audio).

Subsidiary rights:

Translation rights

Film/TV adaptation

Audiobook production

Merchandising

 

Anthologies, reprints, serialization: Can be sold separately.

Retain rights when possible or license them selectively. Be clear on the rights you’re granting in any publishing contract.

 

7. Terms of Service for Platforms

When using services like Amazon KDP, IngramSpark, or Draft2Digital:

Read their Terms of Service carefully.

Know their policies on:

Pricing control

Exclusivity requirements (e.g., Kindle Unlimited demands exclusivity)

Royalty rates

Payment thresholds and schedules

If a platform changes its terms, you may need to adapt quickly—stay informed.

 

8. Privacy and Online Safety

Use a P.O. Box or virtual mailbox for fan mail, returns, or public listings.

Avoid using your personal home address when registering domains or ISBNs.

Consider a pen name if you want to separate personal and professional identities.

 

Wishing you all the best when you work on the Legal and Business Considerations for your books...

Arabella Xx

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