Do you need to start an LLC to develop and sell apps?

General (non-technical) Off-Topic
#1

Sorry for what’s probably a dumb (and repeated) question, but could I just publish and sell my apps on the App Store using my name, or do I have to go the LLC route? I hear the latter provides legal protection, but it also requires yearly fees, business license, etc. When these yearly fees are added on top of the Ansca/Apple subscription fees and various third-party modules’ one-time fees, it really starts to add up. I realize this is the cost of doing business but I wanted to hear from everyone’s personal experience.

Is there anyone that hasn’t started an LLC on here that has run into any legal trouble from selling your apps?

Can I literally just hop on legalzoom.com and start an LLC for my app business that way?

Thanks. [import]uid: 68619 topic_id: 27177 reply_id: 327177[/import]

#2

No you don’t need an LLC.

It’s about how much legal protection do you think you need. If you do not do an LLC and someone sues you, your personal assets, like your house and car are up for grabs. An LLC, they can only take the assets of the LLC.

Making a medical advice app? LLC without a second thought. Making a game of checkers? I wouldn’t bother…
As for making an LLC, you need to check with the state you’re doing it in as the requirements vary from state to state, but yea, Legalzoom.com is one way of doing it.
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#3

Thanks Rob. That helps a lot. What I might do is publish my first game under my name, and when/if it becomes successful enough, I’ll create an LLC [import]uid: 68619 topic_id: 27177 reply_id: 110375[/import]

#4

I’m going to move this to off topic simply because it isn’t really about marketing and because it is a fairly common question and hopefully more folks will find it there :slight_smile:

PS - Good answer as usual, Rob :slight_smile: [import]uid: 52491 topic_id: 27177 reply_id: 110466[/import]

#5

also, if you check with your secretary of state, you can file directly with them and save. here in texas, it cost 300 vs 600ish via legal zoom and it was available within 24 hrs.

additionally, you can change your status with apple ie from individual to llc pretty easily, and without having to re-pay the developer fee.

hope that helps [import]uid: 34595 topic_id: 27177 reply_id: 110477[/import]

#6

In general, it is cheaper and quicker to do it yourself. I went the legalzoom route because I didn’t want to invest the time on all of the paperwork since iPhone development isn’t my day job.

One thing with Legalzoom is they try to up sell you on everything. Make sure you know what you’re signing up for, and especially watch out for stuff that costs a monthly fee. Some of it is useful, some of it you can probably do without.

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#7

Thanks guys! [import]uid: 68619 topic_id: 27177 reply_id: 110731[/import]