LLCs to Protect Yourself - from what?

Things are moving slow regarding the house fire.  No real news to report.

So I'm going back to blogging about the publishing schemers.  Should you form a Limited Liability Corporation (LLC) as an author? 

Before I jump into the scheme, I will say that anyone can sue anyone in the United States for any reason.  So if based on that, I guess it wouldn't hurt except that LLCs aren't free.  I'm not overly concerned that someone will sue based on my fiction writing since I'm definitely sure I wrote it, have backup files, posted info about it during National Novel Writing months, went to writing groups, and from there it'll be a tough case to prove otherwise.  And what would they hope to gain, my royalties?  Plus their court costs?   Not a good get-rich-quick scheme.   Damages?  How does a fictional novel damage someone?  I even googled Vanna's name to make sure there weren't a bunch of Vanna Ames around.  There wasn't even a historic figure named Neferseshotep.

However, the real scheme (according to the schemers) is to use other work that you wouldn't legally be able to use and hide behind the LLC when it's found out.   That doesn't sound pleasant, but they were using as an example Broken Piano for President by Patrick Wensink.  I've actually blogged about Wensink's blog on Salon so when this scheme was floated at a dubious writing group, I knew exactly the book and author.   I don't think Wensink or his publisher started out with the intention of receiving an extremely polite cease-and-desist letter from Jack Daniels that they publicized because it was one of the nicest cease-and-desists ever.  Wensink admitted he made $12,000 in that six month royalty period because his book then became a bestseller so in Sharon terms this is also not a good get-rich-quick scheme.  I have imagination and like to think in terms of Powerball jackpot figures, rather than being able to cover a tuition bill.

But to the scheme -
(1) Set up a LLC. 
(2) Obtain a novel, search and replace names and insert products from chosen title.  The idea floated was similar to Marlboros and Budweisers. 
(3) The LLC publishes the novel.
(4) The LLC collects the royalties.
(5) The LLC pays every cent it receives to the schemer.
(6) Repeat steps 2-5.
(7) The LLC has no money when it is sued by the authors or trademark holders.

First off, I don't think this is very good for someone who claims to be an author.  Ideas should be popping up in your brain all the time so you don't have to manipulate someone else's text and slap your name on it.

Secondly and probably more importantly in legal terms, a LLC cannot be used to avoid personal liability.  Since I'm not a lawyer, I'll point you to Maxwell S. Kennerly, Esquire's post.

Basically, you can't set up a LLC to avoid taking responsibility for your wrongdoing.  Let's say I have my LLC and a teenager.  I register her car to the LLC.  When she drives through a red light, and a camera takes a picture, the ticket will be issued to the owner of the car - LLC.   Do you think I can say LLC has no money, and write ROTFLMAO across the summons? 

The Next Big Thing Blog Tour

Hey there, 

I'm participating in The Next Big Thing Blog Tour with some other authors.  We tag each others blogs and all post answers to the same set of questions.

This tour follows an interview format and for simplicity, I am answering the questions on my own blog rather than exchanging answers/posts with another author.  I'm tagging a few fellow authors at the end of the post.

1. What is your working title/title of your book?

The next Vanna Ames novel is Zombies may Bite but Vampires Suck

2. Where did the idea come from for the book?

It's a sequel to The End of the World Sucks

3. What genre does your book fall under?

Contemporary fantasy or dystopian fiction

4. Which actors would you choose to play your characters in a movie rendition?

Thanos, maybe Jaye Davidson.  It's difficult to find an actor that short but that has an ageless face so the ambiguity about the age can remain.  

Vanna, Alexa Vega.  Lot more short actresses than actors.

5. What is the one-sentence synopsis of your book?

In a post-zombie apocalyptic world, Vanna has a vampire to keep her alive, but at what price?

6. Will your book be self-published or represented by an agency? 

Self-published.

7. How long did it take you to write the first draft of your manuscript?

Since I'm a National Novel Writing Month participant, End of the World Sucks was done in 30 days  This is taking longer because I had a manuscript in 30 days, but I'm fiddling with it more.

8. What other books would you compare this story to within your genre?

I am a cross-genre writer.  This isn't a zombie book and my paranormal love story is not sweet romance.  I would compare this to Gone with the Wind and The Arabian Nights.

9. Who or what inspired you to write this book?

Initially I had no romantic entanglements in the first book, but was convinced otherwise.  With that development, that led to further story needed to explain what happened next.

10. What else about your book might pique the reader's interest?

A vampire in a zombie book is one way of viewing it, but I also aim towards post-zombie outbreak.  What are people doing with themselves in this world?

I'm tagging some other authors to talk about their next big thing:

Liz or L.G. O'Connor   She's also a NJ author, and she writes urban fantasy.

Traditional Publishing and Non-Fiction

I sometimes enroll in a course at Coursera.  It’s free and online, and they’re taught by experts in their fields from recognized schools.

Currently I am taking Surviving Disruptive Technologies taught by Hank Lucas from the Robert H. Smith School of Business, University of Maryland.  The course is nice and understandable so that’s why I’m still with it weeks after its start date.  (If you start a course and find it’s not your cup of tea, it’s simple to unenroll.  No one is going to give you a hard time.)

The course has reached a lesson regarding publishing (it followed newspapers) on how disruptive technology is changing the business.  Prof. Lucas has published non-fiction work and was kind enough to share the numbers.  Like a fiction author, the non-fiction author receives a percent of the net per their contract with their publisher.  He receives the average 15% after net - $50 cover price, he receives $4 for each new book sold.  I’m adding Prof. Lucas receives nothing for the sale of a used textbook.

Here’s where publishers may have competition from self-publishing if authors think along the same lines as Prof. Lucas.  The author provides the content – the intellectual property.  He also provided the interior drawings and illustrations, something publishers used to do.  Is the value of his content roughly 8% of the finished product, or should the author receive more?  Prof. Lucas did include in his lecture that freelance editors and peer reviews are available for hire outside of traditional publishers – hence, he would need to invest money into the project like other self-published authors.

Obviously, Prof. Lucas has a promotional advantage over some self-published authors.  He can assign the book as part of his in-person course at his college, or teach a MOOC (massive open online course) at Coursera to get his name in front of eyeballs interested in the topic that his book(s) also covers.