Collaboration Organizational Structure

Corona Classifieds Collaborations
#1

Not looking for legal advice, but I’m curious what kinds of business entities Indie developers are using to register with the different App Stores and Ad Engines.

Are most just using their own names, or are they registering as an LLC?

How are they sharing the revenue when they work with developers, artists, and musicians?

Is it just work for hire, or are they forming some kind of revenue share? What if they are a key contributor?

I’m working as a developer on a concept with an author/musician and an artist, and we’re all going to play a significant role.  If this ever goes anywhere, I want to make sure we are all protected.

#2

In your case maybe a simple 33/33/33 as an LLC (or LLP depending where you are based) is the way to go.  Unless music is a one time thing in which case you might want to do something like 20/40/40 or 10/45/45.  Remember your agreement is for the lifetime of the app so that does need consideration now.

FYI, Google allows a “trading as” name to be used but Apple doesn’t.

#3

I thought about that, but it seems hard to build a brand that way.  Is it standard to set up another LLC for every app developed in cooperation with a creative team?

#4

Same team can use the same legal structure - just rewrite your contracts to include any new IP you jointly create.

Personally, as programming is by far the most resource (as you’ll generally do all the support, bug fixes and updates) I would pay your contributors on a purely profit share basis.  You can then word the contract per app per involvement  It is much less messy when one wants to leave too.

#5

In your case maybe a simple 33/33/33 as an LLC (or LLP depending where you are based) is the way to go.  Unless music is a one time thing in which case you might want to do something like 20/40/40 or 10/45/45.  Remember your agreement is for the lifetime of the app so that does need consideration now.

FYI, Google allows a “trading as” name to be used but Apple doesn’t.

#6

I thought about that, but it seems hard to build a brand that way.  Is it standard to set up another LLC for every app developed in cooperation with a creative team?

#7

Same team can use the same legal structure - just rewrite your contracts to include any new IP you jointly create.

Personally, as programming is by far the most resource (as you’ll generally do all the support, bug fixes and updates) I would pay your contributors on a purely profit share basis.  You can then word the contract per app per involvement  It is much less messy when one wants to leave too.