Hey I wanted to get a company Apple account, so I wanted to make my upcoming company an LLC. I was wondering if anyone has made an LLC yet and could tell me the process.
Since my earnings would be through the apple and android app stores, would I have to pay taxes or spend any money if I made an LLC? [import]uid: 32524 topic_id: 12074 reply_id: 312074[/import]
Would depend on what country you are in.
Taxes, yes you need to pay taxes.
Other costs include banking, setting up the company and yearly financial reports / accounts. [import]uid: 5354 topic_id: 12074 reply_id: 44021[/import]
Also depends on the State. For example, here in California, an LLC must pay a minimum yearly fee/tax of $800 even if it doesn’t make ANY money. I think most other States are less expensive.
I used Nolo Press’s online service to set up my LLC.
http://www.nolo.com/products/online-llc-TCCLLCUS.html
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Does anyone happen to know if you have to be an LLC in order to get a company account on Apple? I formed a partnership and me and my partner haven’t been able to sign up as a company on Apple, we had to sign up as an individual. [import]uid: 13780 topic_id: 12074 reply_id: 44064[/import]
I thought if you made money through the app store, apple was taxed and I wouldnt have to pay taxes?
I was thinking, since it costs so much money every year and they take a percentage of the earnings for taxes… then what is the point of making a company then?
I just wanted a apple company account so I could display the company name I have. Right now I just filed a fictitious business name for my company, so im not sure what that makes it and if i have to pay taxes on that… [import]uid: 32524 topic_id: 12074 reply_id: 44078[/import]
edgar86: you don’t have to be a company. My friend is a licensed developer and has an app on the store.
RedeemerEric: The point of forming an LLC is to keep yourself legally protected. The LLC offers the easy taxation of a sole-proprietorship with the legal benefits of a corporation. Meaning? Taxes are pass through (the company is not taxed, the owners are) and you cannot be sued personally (unless you willfully manipulate something illegally).
For instance, should another BS patent-shark come out of Texas and start suing everyone who used a common-knowledge technique for software development, you could not be sued personally. Meaning, your $5000 in the bank cannot be touched by the patent-shark, but the $2000 that the LLC has can be touched. [import]uid: 30399 topic_id: 12074 reply_id: 44080[/import]
Any money that you bring as income is always subject to tax. Apple pays taxes on the money they earn, and you pay taxes on the money you earn. You may want to do some research or talk to an accountant if you are unsure on how to do taxes. Also, things may very from country to country as far as taxes, but in general you get taxed on any money you make.
You can also opt to do a sole proprietorship (instead of an LLC), which is basically you running the business by yourself as the sole owner. It usually doesn’t cost much to start a sole proprietorship (no yearly fee), but you don’t get the limited liability you get with an LLC.
I recommend this book if you want to find out more about starting a business: http://www.amazon.com/Small-Business-Start-Up-Kit-California/dp/1413311008/ref=sr_1_1?ie=UTF8&qid=1309983055&sr=8-1
It’s specific to California, but I’m sure it will help you regardless of what state you are in.
Good luck! [import]uid: 13780 topic_id: 12074 reply_id: 44079[/import]
@ rickermortes: I never said he had to be a company, I noted in the post that he could opt to be a sole proprietorship (which is what your friend is). [import]uid: 13780 topic_id: 12074 reply_id: 44084[/import]
edgar: Sorry about that… I didn’t fully read your statement. I apologize. Night shifts + melatonin = awkward message board surfing. [import]uid: 30399 topic_id: 12074 reply_id: 44085[/import]
Hey I found this and these guys are saying that Apple pays the taxes so the money you make is yours… tell me if this is correct… heres the link
http://discuss.joelonsoftware.com/default.asp?biz.5.754704.10
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The types of taxes are being confused.
Apple handles collecting sales tax (which is a big deal considering all the different state and community sales tax laws).
You will still be responsible for any income tax at the state and federal level. Depending on how much you are making, this may have to be paid monthly, quarterly, or yearly (speaking only to U.S. tax collection. I’m not an accountant or lawyer, but I’ve owned my own business for quite a while). [import]uid: 6551 topic_id: 12074 reply_id: 44254[/import]
“I thought if you made money through the app store, apple was taxed and I wouldnt have to pay taxes?”
Whoa whoa whoa, hold on pilgrim!
The way I understand it is apple cuts 30% of price of the app that goes to them. What they do with their 30% is not your problem.
What IS your problem is the 70% - I spoke to my CPA/EA (certified public accountant, and Enrolled Agent - EA’s are licensed by IRS here in the USA) and he broke it down for me. Apple gets 30%, you pay taxes on the 70% so when it’s all said and done you will be left with about 40ish %…yea kind of sad but still ok.
I too am exploring the LLC option, but being in California, I realized there are a ton of fees and things that go along with it, not to mention the additional Tax preparation fees AND umbrella insurance you may want to obtain. I was advised that If I went the LLC route in California, that I should take out a 1 million dollar policy to protect against frivolous litigation (translation, stupid people who sue you just to sue you and waste your money and make you settle out of court).
So when I added things up I was already 2k + in the hole just getting an LLC going + policy insurance + tax preparation etc etc etc etc…
I was told “Ok well here is what you can do. Be individual (for now) and when/if things take off for you then convert to an LLC”
The income I would earn as individual goes against my income me and my wife make, so I was also advised that since we are in the mid 6 figures already that this would really tax us HARD and we should hoard all the money in a separate account and don’t spend anything until we find out what the tax implications are - that way we aren’t surprised by some 40,000 dollar tax bill + social security + CA tax + SSD and a variety of other fun taxes.
When the time came to funnel the income to the LLC, I was told I would have to find a way separate the 2 incomes and from the day the LLC was formed that all monies would then go to the LLC and thus be under that entity.
But wait, theres more! lol. With Apple, I noticed once you publish under a name, I think it stays that way or something - I don’t know as I haven’t published yet but I was reading about it and I’d have to see how that part is handled.
…and here all we want to do is make apps then we get TACKLED with all this legal crap that makes my eyes bleed 
That’s my 5 cents on it anyway, best advice is seek legal advice from qualified sources along with tax advice from a CPA/EA or better yet a person who is BOTH.
Measure twice, cut once that’s the name of the game!
-Nick [import]uid: 61600 topic_id: 12074 reply_id: 44256[/import]