Consider the following three was of publishing a book in the United States: (1) Find a publisher that will publish your manuscript. (2) Form an LLC and publish the book under that title. (3) Upload the book to Amazon.
Now, I had been under the impression that the royalties paid the author under scenario (1) were exempt from the FICA tax (which I recall is on the order of 15.3%). However, I have read some conflicting articles lately; and now, I'm nor so sure.
I am also under the impression that scenario (2)---the LLC route---results in all book profits being taxed as ordinary income, and therefore, subject to the FICA tax.
And (3)---the Amazon route---I thought (perhaps erroneously) that the "self-publishers" who upload their books to Amazon do not pay Social Security taxes on the "royalties" paid to them by Amazon.
QUESTION: Can someone tell me which one(s), if any, of these publishing avenues will result in an exemption from the Social Security tax for either an American citizen or a foreigner with a green card?