Creator Revenues and Earnings FAQ
- What are Creator Revenues?
- What are Royalties?
- What is ‘Other Revenue’?
- What is the difference between creator revenues and royalties?
- When does a royalty become subject to withholding?
- Why are only part of my creator revenues being withheld?
- Why do some of my books have withholding, while others don’t?
- What is a US Domestic Entity?
- What is a Foreign Entity?
- What is the royalty withholding rate for Foreign Entities?
- What about Treaty Benefits?
- How do I get a W-9 or a W-8BEN on file at Lulu?
- When are creator revenues paid?
- How are Creator Revenues paid?
- What's the difference between the retail price and the Lulu price?
- Where can I see my Creator Revenues balance?
- Why aren't my retail sales Creator Revenues showing up?
What are Creator Revenues?
Creator Revenue is the total monies you earn from the sale of your published material. Creator Revenue includes "Royalties" and "Other Revenue."
Last updated: 2008-08-22 10:43:00 | Back to top
What are Royalties?
When a creator buys a Lulu distribution service and their material is assigned a Lulu-owned ISBN, Lulu becomes the publisher of record and all earnings are regarded as royalties for that material, regardless of delivery format. The creator revenue generated by sales of material with a Lulu-owned ISBN meets the true and legal definition of a royalty. Royalties are reported to the IRS and are subject to withholding.
Last updated: 2008-08-22 10:43:00 | Back to top
What is ‘Other Revenue’?
If your book does not have a Lulu-owned ISBN, then your earnings are not royalties but simply, "Other Revenue," which is the amount of money you make on each sale of your published material. "Other Revenues" are not subject to withholding and are not reported to the IRS.
Last updated: 2008-08-22 10:43:00 | Back to top
What is the difference between creator revenues and royalties?
Royalties are accrued when a book that has a Lulu ISBN is sold. Creator revenues include Royalties and other revenue which is accrued when books or other published material is sold that has not been assigned a Lulu-owned ISBN. Only royalties are subject to withholding and are reported to the IRS.
Last updated: 2008-08-22 10:43:01 | Back to top
When does a royalty become subject to withholding?
All creator revenue which meets the true and legal definition of a royalty is subject to withholding.
If you are a U.S. Domestic entity:
- Complete and submit a W-9 form that we keep on file. A properly completed W-9 form provides your Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or Federal Employer Identification Number (FEIN).
- With a valid W-9 form on file, your withholding rate is 0%. If we have no W-9 form on file, your withholding rate is the default backup withholding rate for U.S. domestic entities as set by the Internal Revenue Service of the United States; currently this rate is 28%.
- Please see, What is a US Domestic Entity? for more information.
If you are a Foreign entity:
- Withholding is waived when your published material is delivered, either physically or electronically, outside the United States.
- When your published material is delivered, either physically or electronically, into the United States, the Royalties earned on these sales are subject to US withholding.
- Foreign entities should complete and submit a W-8BEN form that remains on file with Lulu. A properly completed form provides us with your Individual Taxpayer Identification Number (ITIN) as assigned by the Internal Revenue Service of the United States, and also assigns you to a Beneficial Country.
- With a valid W-8BEN form on file, your withholding rate is the percentage defined in the tax treaty between the U.S. and your Beneficial Country as appropriate for royalties. These rates vary by country.
- Without a valid W-8BEN form on file, your withholding rate is the default backup withholding rate for foreign entities as set by the Internal Revenue Service of the United States. Currently this rate is 30%.
- Please see, What is a Foreign Entity? for more information.
Last updated: 2008-08-22 10:43:01 | Back to top
Why are only part of my creator revenues being withheld?
Only the subset of creator revenues which meet the true and legal definition of a royalty are subject to withholding. For more information, please see What are Royalties?
Last updated: 2008-08-22 10:43:01 | Back to top
Why do some of my books have withholding, while others don’t?
Only books with Lulu-owned ISBNs are subject to withholding. If you own your own ISBN, your earnings are "Other Revenue" not "Royalties" and are not subject to withholding.
Last updated: 2008-08-22 10:43:01 | Back to top
What is a US Domestic Entity?
A US Domestic Entity is a individual, company or organization that typically (but not always) resides in the United States and is required to pay taxes to the government of the United States.
Last updated: 2008-08-22 10:43:38 | Back to top
What is a Foreign Entity?
A foreign entity is an individual, company or organization that typically (but not always) resides outside of the United States and primarily pays taxes to a government other than the United States.
Last updated: 2008-08-22 10:43:01 | Back to top
What is the royalty withholding rate for Foreign Entities?
With a valid W-8BEN form on file with Lulu, your withholding rate is set at the percentage defined in the tax treaty between the U.S. and your Beneficial Country as appropriate for royalties. These rates vary by country. Without a valid W-8BEN form on file, your withholding rate is set at the default backup withholding rate for foreign entities as determined by the Internal Revenue Service of the United States. Currently this rate is 30%.
Last updated: 2008-08-22 10:43:02 | Back to top
What about Treaty Benefits?
If you have a W-8BEN on file at Lulu with a valid Individual Taxpayer Identification Number (ITIN) or an Employment Identification Number (EIN) then you can claim treaty benefits. To see if your country has a treaty rate, check the IRS’s website at www.irs.gov
Last updated: 2008-08-22 10:43:02 | Back to top
How do I get a W-9 or a W-8BEN on file at Lulu?
Upon approval of your distribution license agreement you agree to submit a completed W-9 or a W-8BEN form. The information on your submitted tax form should match the payee information you entered under Change Remission Settings. You can also find them on the IRS website. If you have questions on how to submit your form you can email us.
