Forming a pdf company--your experiences?

[Napftor]

(I posted this over at rpg.net as well but would like a broad range of responses...)

I know these forums are rife with folks who have jumped through (or seen others jump through) the hoops of business building. My brother and I have decided to form our own pdf venture called Tricky Owlbear Publishing. I'm about to tap Empty Room Studios to design our logo and we're deciding under what business configuration to form our company--LLC, S-Corp, etc.

What I'm throwing out to the public here is a request for any advice on company formation. My brother is the business end, really, but I'd like to hear about other folks' experiences. Do we need to drop a boatload of bucks for a lawyer to make us legally official? Is there an aspect to online small business formation that is easy and on the cheaper side? As I'm just the creative arm of this endeavor, all information no matter how basic is appreciated.

 

[Vigilance]

Well, although I still have my creator-owned imprint, Vigilance Press, I find myself working with other companies time and again.

Why? Mostly I like having a sounding board. If another company can be sold on an idea, I can proceed in confidence that I can sell it to a customer (hopefully more than one!).

Mostly I keep my imprint around on RPGNow so that I can run with something solo if I ever can't sell an idea I feel that strongly about.

But as evidenced by my massive two-product catalogue, it doesn't happen much.

Probably not what you were looking for, but still my experiences. I usually end up partnering.

Chuck

 

[Bacris]

Well, the big question I would ask is: why am I entering the RPG PDF industry?

Is it to make money or because I enjoy writing RPG material?

If it's the former, it's probably the wrong industry Don't get me wrong, you can make money, but the amount of work you're going to put in may not justify the payoff to you.

Now, if it's because you enjoy writing RPG material, I have to ask why not simply work for another PDF publisher? Writing material and running business are very, very different things. The marketing, press releases, branding, and everything that comes with that can be very intense, especially if you don't know what you're getting into.

What I'd recommend regarding setting up a business is going to your state or county's chamber of commerce (in person or online if available) and learn what needs to be done to form a business - what forms do you need to fill out? Do you have to fill out an Assumed Name Certificate (that tells the state you are operating as the business name). What tax licenses do you need? LLC usually costs a few hundred bucks, but keeps your personal property out of the equation in case of litigation. Sole proprietorship / partnership will be cheaper, but in the case of legal issues, can be messier. Standard corpporation offers tax breaks, but for a small business model, probably won't meet up with the costs associated, so I'd probably recommend against going with that model.

Get all that done first so you have your bases covered.

Webhosting - there are a huge variety of webhosts available. There are a wide variety of free or cheap e-storefronts available as well. What I'd recommend is look at the sites you like the style of and see what software package they used - ZenCart, OSCommerce, and Virtuemart are the 3 I'm familiar with and all have their strengths and weaknesses.

 

[lmpjr007]

Brett, if you are seriously going to do this and especially with your experience if I was you would, I would for a corporation. I have been incorporated for 4 years and the tax saving and benefits alone are more than worth it. Plus in any business legal issues, only my corporation can be sued, not me directly. The little bit of money it cost you to incorporate will save you tons later.

 

[Fifth Element]

Brett, if you are seriously going to do this and especially with your experience if I was you would, I would for a corporation. I have been incorporated for 4 years and the tax saving and benefits alone are more than worth it. Plus in any business legal issues, only my corporation can be sued, not me directly. The little bit of money it cost you to incorporate will save you tons later.

Just note that a corporation does not provide absolute protection against personal liability. If liability is a significant issue for you, you should consult a lawyer.

 

[Morrus]

Just note that a corporation does not provide absolute protection against personal liability.

I'll just echo that.

 

[Napftor]

I'll just echo that.

Ah, but would you or anyone else care to elaborate? Certainly a corporation goes a long way toward helping in personal protection (otherwise they wouldn't be advertised as such, right?). I'm not as worried about litigation since it's not like we've seen a lot of suing going on over the last few years.

 

[Fifth Element]

Ah, but would you or anyone else care to elaborate?

Really, only a lawyer should be elaborating. Thus the advice to consult a lawyer if liability is something you're concerned about when starting a business.

It's just a common misconception that if your business is incorporated, you're free and clear of any personal liability. That's not the case.

 

[HalWhitewyrm]

I run HMP as a DBA (doing business as), which is a fancy name for a fictitious name under which I can do business. Right now that has been the best option for me, though I am getting to a point where I may want to upgrade to an LLC.

Personally I found an LLC to be a good business environment though I would advise you to have an accountant you can call any time to help you out with this.

 

[xrpsuzi]

I'll echo Fifth Element and Hal. Talk to a lawyer if you are worried about liability. Talk to your accountant, because different entities have different parameters on a national and state level. It's a min/maxer's heaven

One thing I'll throw in is that a DBA (doing business as) is a sole propriatorship, which may not work if you and your brother want to share ownership.

-Suzi