How to Use an LLC to Publish Books on Amazon KDP: A Guide for Indie Authors

If you’re an indie author publishing on Amazon Kindle Direct Publishing (KDP), you already wear many hats—writer, editor, marketer, and publisher. But there’s another role you might not be playing yet: business owner. And that’s where an LLC (Limited Liability Company) can be a powerful asset.

Whether you’re releasing a single ebook or building an entire catalog of fiction, nonfiction, or low-content books, forming an LLC helps you protect your brand, manage your royalties, and operate professionally. Here we look at exactly how authors can use an LLC with Amazon KDP, when it makes sense, and how to do it the right way.

Why an Author Might Want an LLC

Publishing through KDP means you’re in business for yourself. Even if you’re not raking in six figures (yet), selling even one book triggers legal and tax obligations. Forming an LLC helps you treat your writing like the business it already is.

Key Benefits of an LLC for Authors

• Limited liability protection – If someone sues you for defamation, copyright issues, or business disputes, an LLC shields your personal assets.
• Professionalism – Operating under a company name boosts your credibility with readers, service providers, and potential collaborators.
• Financial separation – LLCs make it easier to open a business bank account and keep your royalties, advertising expenses, and publishing costs clearly separated.
• Tax flexibility – LLCs can offer opportunities for better tax treatment, especially if your income grows over time.

Can You Use an LLC with Amazon KDP?

Yes—you absolutely can. Amazon KDP allows authors to publish as individuals or businesses. When setting up your KDP account, you can list your LLC as the publisher and receive payments under your business name and EIN (Employer Identification Number).

Here’s what you can customize in your KDP account once you’ve formed an LLC:

• Tax information – Submit your LLC name and EIN instead of your personal SSN.
• Royalty payments – Direct earnings into a business bank account tied to your LLC.
• Imprint/publisher name – List your LLC (or a DBA) as the publisher, making your books appear more professional.

When Should an Author Form an LLC?

Not every writer needs to jump into business formation right away. Here are a few signs that it’s time to consider forming an LLC:

1. You’re Earning More Than Hobby-Level Income

If your royalties are crossing $500–$1,000/month—or if you’re treating writing like a career instead of a side interest—it’s time to structure it properly.

2. You’re Paying Contractors or Working with Others

Hiring editors, cover designers, or co-authors? An LLC makes it easier to formalize relationships, issue 1099s, and protect yourself legally.

3. You Want to Build a Brand

If you’re creating a publishing company or managing multiple pen names, an LLC helps you operate under a unified brand while staying legally organized.

4. You’re Investing in Ads or Printing

Spending money on Amazon Ads, Facebook marketing, or author events? These are business expenses, and you’ll want the structure to track and deduct them correctly.

How to Set Up an LLC for Your KDP Publishing Business

1. Choose a business name – This could match your author brand or act as a generic publishing house (e.g., “Crescent Ink Publishing LLC”).
2. Check for name availability – Make sure your business name is available in your state and as a domain, if you plan to create a website.
3. File Articles of Organization – Submit this to your Secretary of State and pay the filing fee (usually $50–$300).
4. Designate a Registered Agent – This can be you, a friend, or a registered agent service.
5. Get an EIN from the IRS – You’ll need this to receive royalties as a business and open a bank account.
6. Open a business bank account – Deposit your royalties here and use it to pay business expenses.
7. Update your KDP account – Under “Payment and Tax Info,” update your name, EIN, and direct deposit details.

Can You Use a Pen Name With an LLC?

Absolutely. Many authors form an LLC under one name, then publish under multiple pen names. You can use a DBA (Doing Business As) for each pseudonym if needed, especially if you want to open social media accounts or separate imprints under different names.

What About Publishing Multiple Authors?

If you’re managing books for more than just yourself—like co-authoring or publishing other writers—an LLC is essential. It gives you the structure to sign contracts, collect royalties, and split income legally and professionally.

You may also want to:

• Create an Operating Agreement if multiple people are involved
• Consider additional licenses if you publish physical books at scale

Tax Implications for Authors with an LLC

Here’s what you need to know when filing taxes with an author LLC:

• Single-member LLC: Income is passed through to your personal tax return using Schedule C.
• Multi-member LLC: You’ll file a separate return (Form 1065) and distribute income to each member via K-1s.
• Optional S-Corp Election: If your net income exceeds $50,000/year, you may benefit from electing S-Corp tax status to reduce self-employment tax. Talk to a CPA first.

You can deduct legitimate expenses such as:

• Editing and formatting costs
• Software like Vellum or Scrivener
• Ad spend and promotional tools
• Author website hosting
• Travel to conferences or book signings

Real Author Scenarios

Carla – Romance Author with Growing Sales

Carla published her first romance series in 2022. By year two, she was earning over $3,000/month in royalties. She formed “Red Rose Ink LLC” and updated her KDP account to reflect the new entity. She now deducts ad costs, freelancer payments, and even a portion of her home office.

James – Nonfiction Writer and Coach

James writes productivity books and offers coaching packages linked through his KDP author bio. He formed an LLC to combine his writing, consulting, and course income under one business, making taxes easier and opening up new revenue streams.

Olivia – Publisher of Multiple Low-Content Books

Olivia designs planners and journals under several brand names. Her LLC allowed her to build an Amazon storefront, accept affiliate partnerships, and scale her business without using her personal name on every product.

Write Boldly, Publish Legally

If you’re an indie author on Amazon KDP, forming an LLC isn’t just for the big names. It’s for anyone who wants to protect their royalties, build a long-term brand, and treat their creative work like the business it already is.

You don’t need to be a bestseller to benefit. You just need to be serious about your writing. With an LLC in place, you can publish with confidence, knowing that you’re not just telling stories—you’re building a future.