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Do I need to be a company to sell indie software?

Started by January 04, 2004 06:41 PM
7 comments, last by BlendedRacer 20 years, 9 months ago
HI, I am starting out with games development after several years programming games/graphics mods. Do I have to be a registered company to sell software? I was planning to release some early work as donation-ware, to see it had a market (looking at downloads rather than expecting to raise money). I guess if I want to register with a credit-card handling service, I need to be a company, but what about initially using pay-pal? Any advice gratefully received!! Cheers Stephen Turn Left 100m.......... YES! That left back there!
Turn Left 100m..........YES! That left back there!
I have no idea what the specific laws are in Australia (you should look into them or ask someone who has), but assuming you where in the US or Canada, registering a company is good/required for two big reasons:

1. Taxes. I''m not sure how it works (In Canada IIRC you can make up to $16,000/year from odd sources [i.e. donation ware, or cash jobs, etc] without having to have a Provincial Sales Tax number).

2. Legal. If done correctly having a company front is a good way to prevent any accidents (like getting sued) from destroying you personally.

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Check out Garage Games (indie Publisher) and Dexterity Software (artiles).

Garage Games publishes games and Dexterity Software has a lot of great articles about startup and running game companies.

Dexterity

[edited by - natasdm on January 4, 2004 8:20:45 PM]
Check out this starting a business guide from the Australian Tax Office.

http://www.ato.gov.au/businesses/default.asp?menu=824

[edited by - Taz on January 7, 2004 12:42:20 AM]
This may also help you out :

http://www.ato.gov.au/businesses/content.asp?doc=/content/25307.htm
Thanks for all the replies!

NSW has some good sites on starting a business (couldn''t find an equiv in VIC).

Didn''t think about the tax office - good idea. I guess I associate them with taking money rather than making money.

Thanks Stephen


Turn Left 100m..........
YES! That left back there!
Turn Left 100m..........YES! That left back there!
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In the US, you are all set to go just by yourself. You''d be a "Sole Proprieter".
This is discussed, as well as quite a few other topics, in my book: The Indie Game Development Survival Guide.

The short answer (in the US) is: No, you don''t have to be a legal corporate entity to sell your software. There are advantages to it, however. I recommend reading up on the various business structures, with their pros and cons, before making up your mind.

-David


DavidRM
Samu Games

The Indie Game Development Survival Guide
In Canada, its legal to do business under your own name. However, you can''t do business under anything BUT your own name without a business liscence.

Example:

This game was made by Scott McCallum.

Thats fine, but...

This game was made by McCallum Games.

Thats not okay.

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