Are you considering selling on Amazon KDP and want to know if you need a business license? Maybe you are looking to make some extra cash and aren’t sure if Amazon KDP is the right choice for you? Or are you curious and want to know more? No matter your reason, we have the answer for you!
Amazon KDP can be a wonderful way for self-publishing authors to make some money and get their work out there. But if you are new to it, it can be a minefield.
You head online for some clarity but are met with pages and pages of conflicting and contradicting information. Disappointed and deflated, you wonder if you will ever know if you need a business license to sell on Amazon KDP.
Well, no more! Today, we are here with the answers you need. Keep reading to find out if a business license is required to sell on Amazon KDP and everything else you need to know!
What Is Amazon KDP?
Before we get into today’s article, let’s have a quick recap for those that need it. Amazon KDP, or Amazon Kindle Direct Publishing is a service offered by Amazon. KDP allows you to publish hardbacks, paperbacks, and eBooks for free.
Through KDP you can publish your book for others to read and create a product detail page for it. You can scale up your sales too, offering your book for global sales in a variety of formats.
Amazon KDP can be used for new and existing authors, and even publish books you have already released on there!
It’s a good way for authors to get their work out there, and also make some extra cash. You can set the pricing for your books, getting a fixed percentage of this money in royalties.
Amazon KDP has plenty of help pages that will walk you through the process of setting up royalties, setting prices for your books, and everything else you will need to do.
Now that we have briefly established what Amazon KDP is, let’s dive into today’s article and find out if you require a business license to sell on Amazon KDP.
Do I Need A Business License To Sell On Amazon KDP?
No, you do not need a business license to sell on Amazon KDP! You don’t need a business license here as most of the products sold on Amazon are not federally regulated.
Generally speaking, products sold online don’t require government approval (there are exceptions) so you don’t need a business license.
As you are selling your book on Amazon, Amazon acts as the seller and you become an independent contractor. To sell books you don’t need to be registered as a business.
If you were to launch your own publishing business selling books, you would need to, but for books sold through Amazon KDP, you don’t need to worry about getting a business license.
It is worth noting that licensing rules vary from state to state. You should check with your local state or county office to find out how to apply for licenses and if you need one.
Generally, business licenses are not needed to sell on Amazon KDP, but it is always best to check with your state rules to be safe.
How Do I Sell My Book On Amazon KDP?
Selling your book on Amazon KDP isn’t too tricky. You can publish virtually any book there, including novels, poetry, comics, children’s books, and textbooks.
Once you have written and edited your book, you can have it on Amazon ready for people to purchase in a few easy steps.
We have made a step-by-step guide below for you to check out. It’s worth noting that the whole process on Amazon is fairly straightforward too, it’s easy to follow and there is plenty of help available should you need it!
- Create an Amazon KDP Account. You can do this at kdp.amazon.com
- Create a new Kindle e-book title. You can also select a paperback option if you will be selling physical copies of the book.
- Enter your book title and subtitle. You can also add the language of your book, the author, and a description. We think, the more information the better when you are filling this section out!
- Verify your publishing rights. You will need to confirm that you own the copyright and publishing rights.
- Add keywords. Keywords are how people will find your book, so make sure you include a wide variety that applies to your book.
- Next, select your genre, age range, and when you want the book to be released. You can select a release date or publish it immediately if the book is ready to go.
- Enable DRM rights, this stops anyone from copying your book and selling it or releasing it for free.
- Upload your book. You can also add a cover to your book here.
- Preview your book. The last thing you want is to publish it without any mistakes!
- Add Kindle ebook ISBN. It’s an optional step, as ebooks don’t require an ISBN, but we think it’s worth doing.
- Choose KDP select, territories, and marketplace (where your book will be sold).
- Set the price of your book and set up royalties.
- Hit publish!
These steps are a simplified process, but most of them just require you to select options from drop-down bars. Amazon KDP has made the process of publishing your book as simple as possible, so you don’t need to worry. You can get your book out there in no time!
Do I Pay Tax On Book Sales From Amazon KDP?
Yes, the money you make from selling books on Amazon KDP is tax deductible. For every book you sell on Amazon, you get 60% of the sale. This money is viewed as income, just like the money you get paid from an employer.
You will need to provide Amazon KDP with valid taxpayer identification to ensure that you are meeting their tax reporting regulations.
The amount of tax you need to pay will vary depending on how much you make from your book sales. If you find yourself making a lot of money and sales, it might be worth enlisting the help of an accountant.
They can help calculate the tax you owe and ensure that it is paid on time. They can also help you with any tax returns you might be owed. For those that don’t want to hire an accountant, Amazon has a list of tax resources that you can take advantage of.
It’s worth familiarizing yourself with these to ensure that you aren’t accidentally not paying tax!
You can access your tax form on your Amazon KDP account, on your account page. Here you can download your year-end tax form and complete it. It is your responsibility to complete these forms and submit them before the deadline.
Final Thoughts
And there you have it! You do not need a business license to sell books on Amazon KDP! Whether your book is a paperback, hardback, or ebook, you don’t need a business license.
Simply use our step-by-step guide and you can have your books listed on Amazon KDP for everyone to read and enjoy.
