mobile-appsAnother person and I are developing a phone application.
We plan on having advertisements on the application and it will be available from the Google Playstore as well as Apple Appstore.
Since we’re hoping on making money from the advertisement, would something like an LLC need to be made or is that getting too far involved? What would be the best way to handle taxes on the revenue that is made?
When I set up my corporation’s developer account on Apple (about a year ago), they asked for a D&B Number. Fortunately, the also instructed me on how to get one, and gave me a link to the D&B application site. I don’t know if that is standard for non-corporate accounts.
On the Google side, I don’t remember encountering any snags. I put in my corporate ein number and they approved it very quickly.
Both Google and Apple will have specific requirements which are not really in my line of personal experience so I won’t comment on them.
In regards to whether to incorporate or what to incorporate as, I would say a LLP might be better as less paperwork if long term you don’t intend to expand very much. For the taxes themselves a partnership/LLP/as individual its the same. An LLC then you will have to deal with corporate taxes as well and in some cases that can lead to a bit of duplication of taxes.
DO NOT CREATE A COMPANY JUST BECAUSE YOU ARE LAUNCHING AN APP
A lot of single developers make money from advertisement as well as app sales. Most of them do not have companies. Apple, Google and all those other large advertisement companies already pay the taxes for the revenue earned from the advertisements and sales.
You should only create a company when you have your product/market fit and you are
Stop worrying about the legal stuff and just launch your app.
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