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The Craft of Writing Writer Beware Writing Bookstore |
The Business of Fiction Writing FAQ
There's plenty of information on how to write a story... even more about how to get published. But between the sale of your first story and your modest (or kingly) living as a professional writer is a curious gap in the information you need: how to run your writing as a small business. This FAQ attempts to fill in that gap.
Please note that none of this constitutes formal legal advice. We encourage you to do your own research, and intend this FAQ only to give you a place to start.
1. Establishing a Business.
First, choose what kind of business you want to establish: a sole proprietorship, a partnership, or some form of corporation.
Links
Where to Obtain a Business License, by State, Small Business Administration.
Start-Up Basics, Small Business Administration.
Why Writers Who Aren't Yet Superstars Should Have a Small Business of Their Own -- and How to Go About It, Suzette Haden Elgin.
2. Record-keeping.
Single-Use Checking Account. Open an account for your business: all income goes into this account, and all expenses come out of it. Get checks with your business address, if you have one. Make sure you can cash checks made out to pseudonyms or your business name by having them on the account.
Single-Use Credit Card.. If possible, apply for a credit card you will use only for business expenses; this minimizes the effort you'll need to remember which expenses were incurred for the business and which were personal.
Links
3. Taxes.
Things about state versus federal income taxes, about deductions, expenses,
income. Forms from the IRS. Circulars from the IRS and links to them. Etc.
Deductions.
You can deduct anything you use as research for writing. Magazine subscriptions for magazines you're planning on contributing to; magazines with market-specific topics; novels bought as market research; nonfiction used to investigate topics you're writing about; movies if you're writing screenplays or selling movie options; writer's workshops, conventions, and other trips meant to gather information for writing; games, if you're having a game based on your novels written, or if you're working on writing game material; comic books or graphic novels if you're planning to become involved in them. Make sure when you buy something you intend to deduct that you have a good reason for it in mind, and if it's something like a field trip, take extensive notes and photographs. Keep in mind your presence on a field trip is deductible, but any friends or family you might bring along aren't. Additionally, money spent on attorneys and accountants is deductible.
Links
Small Business and Self-Employed One-stop Tax Resource, IRS.
Tax Tips for Writers, Poets and Writers Online.
The Writer's Pocket Tax Guide, Foolscap & Quill.
4. Place of Business.
Make sure your local government doesn't require a variance to operate a small business in a residential district.
Links
5. Health Insurance.
How to get coverage if you're not covered by something else.
Links
6. Retirement planning.
IRAs? Investments?
Links
7. Estate planning.
Something about wills would go here, or about whether you can pass on your
literary properties to your heirs.
Links
8. Professional Aides.
There are several kinds of professional aides available to writers:
Accountants: A professional who takes your books and pulls together all the information required to prepare taxes, Profit & Loss statements, internal audits and anything else that you, or any government (local, state, Federal) require.
Tax Attorneys: A lawyer who specializes in tax law--finding a local practitioner is best.
Intellectual Property Attorneys: A lawyer who specializes in intellectual property law.
Links
To suggest additions, corrections or links to this FAQ, email business at sfwa.org.
This page was last modified on Sunday September 12 2004.
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