To answer your specific question, you don't need to set it up for the printer (called imposition). That's their job. It's actually better if you don't set it up, because they will know aspects of production that you won't know, or probably couldn't know that will need to be addressed when they impose the pages. If you don't mind, I'd like to address something else with you.
One thing that I've seen when people design projects is that they don't consider how it will be produced when they choose the size, which leads to production issues that can drive up production costs that the designer is unaware of. For example, suppose you chose 8.5x11 because it is a common paper size in the US. You can have it printed in any number of offset print shops, or even at a variety of Kinko's or Office Depot type places. They can rely on the abundance of pre-cut paper at 8.5x11, and offer you a low cost. If you decide you want your 8.5x11 pages made into a book, they can either print single sheets and wire or comb bind them, or if you prefer, use a 17x11 sheet and print spreads to do a saddle stitch (like a magazine). That's all very common because 11x17 is also a common size that many network copiers can print and bind.
Here's where it gets costly: suppose you decide to have the binding on the short side (like you are suggesting) instead of the long side. Now, instead of 11x17 paper, you need 8.5x22, which is not a common size, and won't fit into many of the copiers or small presses that you may be looking to use. You will get an upcharge on paper and probably binding, because the binding features on copiers aren't set up to do 8.5x22, and will have to be done in a second stage with different equipment. It could be a small difference, or maybe the difference cuts too far into your profit margin—who knows?
What I suggest you do is find out who will be printing this, and whether they can do a book of this size and orientation. Since it sounds like the book is already complete, you may have to rework it if you want it to be able to sell it for more than it costs to make. If it turns out that you can't do it the way you want, you will have spent time that you wouldn't need to have spent if you had considered the size before you started. I'm not saying you can't do this at all, or even that it can't be done as easily or cheaply this way, but it's less likely.
Thank you very much for your detailed post. I'll have to ask my printer about the situation in how to save. I'm pretty sure I'll just send over the packaged file.
As for the orientation of the size, I didn't consider the cost and how uncommon the size is (which you are very correct). Thank you very much, again!
I'm pretty sure I'll just send over the packaged file.
Most printers will want a PDF. Ask what PDF settings they prefer.