What's In A Name? The Importance of Naming Your Business

Finding the right title for a book is essential.  It helps set the tone for the book, marketing plans, and provide a glimpse as to what the book is about.  The same can be said for the name of a business.  As a writer, you will find yourself reaching into your creative side to find the name that will best represent you as a business. This is the name that will be used to register your business, open accounts, and establish yourself as a brand.

One practice often used by single-owner organizations is creating a DBA (Doing Business As).  It allows an entity to operate under a fictitious name.  It is an alias.  Establishing a DBA can be beneficial for either sole proprietorship or Limited Liability Companies that are single owner organizations. 

   

Here is an example of why using a DBA could be beneficial for writers. Mary Collier has completed her first book and is now beginning to generate income and expenses for her writing.  She wants to establish her business.  Using a DBA, Mary can do this by naming her business: Mary Collier DBA Author Mary Collier.  This allows Mary to separate her personal side from the business side of being an author.

Registering a DBA is required and can incur fines if not filed.  Most DBA’s are registered with the

local County Clerk’s office or with the state.  It is recommended to check with your local and state government for steps to register a DBA.

On the flip side, some writers may like the idea of creating a pithy name for their business.  One that may represent their genre.  While this may stoke the creative flames and   coax the ego, it is an idea I would not recommend. Why?  Business is fluid and constantly changing.

Let’s say that today your writing interest is centered on Science Fiction works.  So, you decide to name your business, Galaxies Far Away Writing Company.  Great! You have succeeded at branding yourself with a science fiction themed business name.  But, what happens if down the road in a galaxy far, far way (sorry I couldn’t resist), you tire of creating these futuristic worlds and decide you want to write contemporary romance.  

This is why establishing the name of your business should reflect the one constant in the work you produce.  That is you.  Even if you decide to publish under a pseudonym, it is still you that created it.  Just like your books are products to be marketed, you are also a brand that requires the same level of promotion. So, chose the name of your business wisely.  It is one that will stick with you for a very long time. 

What Type of Business are You?

 

  The writing process taps into the creative side of one’s personality. However, it is the practices and skills of being a business owner that builds a foundation to measuring the overall success. The first step of building a means of measurement is establishing yourself as a business entity.  There are two common ways.  One is a sole-proprietorship and the second is a Limited Liability Company (LLC). Each has their own advantages and disadvantages.

     A sole-proprietorship does not require filing papers with state agencies, obtaining a Federal EIN (Employee Identification Number) or initial start-up capital to form. The use of your social security number is the only required information.  There is not any need to establish  officers or filing articles of incorporation.   

   One disadvantage to being a sole-proprietor is the amount of liability, which is one-hundred percent on you. You assume all liability for any incurred debts and legal liability. Your personal property can be considered as assets to the business.

     A Limited Liability Company limits this amount of personal liability. It creates a “barrier” between your personal assets and your business. Like a sole-proprietorship, taxes are filed through your individual tax returns. This eliminates the need to file corporate taxes.   
    
     A disadvantage to establishing a LLC is the initial start-up cost.  A LLC can be formed through the use of an attorney or on-line legal service. Filing fees and annual renewal fees are often required by your state. 

While both sole-proprietorship and a LLC allows you to be a single owner entity, forming a LLC provides a legitimacy to your business.   Vendors, financial institutions, and other business entities tend to see a LLC as having more credibility. Having established a LLC will provided the basic required documentation by banks to establish a business account. 

     As it is important to define your antagonist/protagonist and plot points, it is the same for defining yourself as a business. 

    
                                                                                   

  

"In order to succeed, we must first believe that we can."

-- Nikos Kazantzakis 

 Sole Proprietorship v/s LLC

	Sole Proprietorship	LLC
Single Owner	X	X
Include with Individual Taxes	X	X
Requires EIN number	Optional/SSN can be used	X
Requires filing with Sate Agency		X
Limits Personal Liability		X
Meets Basic Requirements for Business Checking Accts		X
Provides Credibility as a Business		X

 Useful Resources:

How to obtain an EIN - 

        Individual/Sole Proprietor:  https://federal-ein-online.com/apply/sole-proprietor

               (Highly recommend using instead of SSN)

        LLC - https://federal-ein-online.com/apply/limited-liability-company

To File or Register with your state:  visit your State's Website for the office that is responsible for establishing and regulating business ownership.  Some states place this responsibility under the Secretary of State's office.

Obtaining a business license - Local City and County government websites have a link that detail the requirements for purchasing a business license.  The type of business may determine if there is a requirement to have a business. 

 Obtaining a Sales Tax ID Number - sales tax is required to be collected on individual sales, including internet sales, by most states.  A visit to your state's website will provide the information and steps to obtain a Sales Tax ID number.  This is normal regulated through the state's department of revenue. 

  

Welcome

"All our dreams can come true, if we have the courage to pursue them."  Walt Disney

Welcome!  While there are a plethora of blogs that writers can go to when looking for great tips and insight on the writing process, this blog is a place where writers can come to for information about the business side of writing.  At this point, many of you are probably getting use to introducing yourself as a writer.  But, have any of you stopped and tried on the word entrepreneur? 

Regardless if you are contemplating the traditional route or the self-published, you have not only entered the world of becoming a wordsmith, you have also entered the arena of becoming a business owner.  This blog will focus on topics such as defining yourself as a brand, how to set up a small business, how to sell yourself and your work, and many varied topics that will help you find success. 

So, mark your calendar for the official launch of our blog on November 1^st.