Colonello Posted January 16, 2015 Author Share Posted January 16, 2015 Hey everyone, I plan on releasing the game I've been working on the past 7 months soon and I have a question to ask first. Before I get to the question here is something you should know before answering it. The game itself is not being sold but there is an optional membership fee for around $5 a month. It gets you access to more, dungeons, bosses, items, tools,etc, etc. I was wondering do I need a business license in order to sell these memberships? I've heard if you wish to independently sell a game you need one so I figure it's similar. Also is there any way I can sell these memberships without creating a business? For example through Steam? If you need any more info I live in the U.S. and I am not yet 18. Link to comment Share on other sites More sharing options...
lexkymbeth Posted January 16, 2015 Share Posted January 16, 2015 Depends on your state laws, here I didn't need a business licence to sell online. (Apple appstore) Link to comment Share on other sites More sharing options...
Colonello Posted January 16, 2015 Author Share Posted January 16, 2015 > Depends on your state laws, here I didn't need a business licence to sell online. (Apple appstore)Ah I see, I'll take a look in to that. Thanks :) Link to comment Share on other sites More sharing options...
SkywardRiver Posted January 16, 2015 Share Posted January 16, 2015 I wouldn't think so, it's just optional memberships. Link to comment Share on other sites More sharing options...
Colonello Posted January 16, 2015 Author Share Posted January 16, 2015 I went and looked at my states laws and found out a license will cost me $200 yearly if I am required to purchase one (which honestly isn't that bad if 20 people had $5 monthly memberships I could easily pay that fee and keep the game afloat). I also found out that apparently it would count as a home business meaning I wouldn't be required to get one (as long as I didn't earn more than $27,000 yearly). I guess this issue is resolved. :P (Unless anyone has anything else to add). Link to comment Share on other sites More sharing options...
Colonello Posted January 16, 2015 Author Share Posted January 16, 2015 > I wouldn't think so, it's just optional memberships.That's what I think it would think too. Link to comment Share on other sites More sharing options...
Mal Posted January 16, 2015 Share Posted January 16, 2015 Anything above $500 in gross revenue must be reported to the IRS and is taxable income. I doubt you need a business license unless you're carrying liability and perform a public service. I'd speak with multiple business law attorneys; aim for free consultations. Although they cannot give you legal advice unless retained they could help point you in the right direction. Link to comment Share on other sites More sharing options...
Colonello Posted January 16, 2015 Author Share Posted January 16, 2015 > Anything above $500 in gross revenue must be reported to the IRS and is taxable income. I doubt you need a business license unless you're carrying liability and perform a public service. I'd speak with multiple business law attorneys; aim for free consultations. Although they cannot give you legal advice unless retained they could help point you in the right direction.Ah I see, thank you. I'll definitely see if I can get in contact with someone. Link to comment Share on other sites More sharing options...
Guest Posted January 16, 2015 Share Posted January 16, 2015 No. It's the internet it doesn't matter especially since you're under 18. Setup a paypal account and an itch.io account and you should be sorted. Link to comment Share on other sites More sharing options...
Rob Janes Posted January 16, 2015 Share Posted January 16, 2015 As Budweiser said, you wouldn't need a business license most likely, but you will need to pay taxes on profits. It would be considered self-employment and you would need to file those taxes accordingly with the IRS, CRA or whomever regulates taxes in your country and state/province.I'm not sure about the Apple App-Store in the US but for any apps I've released they automatically charge the proper tax rate on any sales, and I receive payment through direct deposit as well as proper tax forms by snail mail. Link to comment Share on other sites More sharing options...
Marsh Posted January 16, 2015 Share Posted January 16, 2015 > Depends on your state laws, here I didn't need a business licence to sell online. (Apple appstore)Really? Did you do your tax forms to actually receive a payment yet? Link to comment Share on other sites More sharing options...
UnGod Posted January 16, 2015 Share Posted January 16, 2015 Not sure if this is anything but I know almost all of the pay to play minecraft servers are "donations" and the rewards for these donations are "thankyous" I dont know if they do that to get around needing a license or if thats just so they dont have to give out refunds Link to comment Share on other sites More sharing options...
lexkymbeth Posted January 16, 2015 Share Posted January 16, 2015 > Really? Did you do your tax forms to actually receive a payment yet?~~Not yet have to do that some time in the next few months :S May/June I think is when I have to~~Edit; Mis read that yes I did I just haven't done taxes yet aha XD Link to comment Share on other sites More sharing options...
Marsh Posted January 16, 2015 Share Posted January 16, 2015 > ~~Not yet have to do that some time in the next few months :S May/June I think is when I have to~~> > Edit; Mis read that yes I did I just haven't done taxes yet aha XDI thought they asked for a business id when setting up those forms. I didnt know that thats cool! Link to comment Share on other sites More sharing options...
lexkymbeth Posted January 16, 2015 Share Posted January 16, 2015 > I thought they asked for a business id when setting up those forms. I didnt know that thats cool!Its optional pretty sure, can't remember… Yea it must be, I do not own a business so it shouldn't be required :blink: Link to comment Share on other sites More sharing options...
Colonello Posted January 16, 2015 Author Share Posted January 16, 2015 I dug a little bit in to it and for now I plan on getting just an average $200 license if for some reason I don't qualify as a home based business. If I earn enough money in the long run I'll change it in to a sole owner LLC (If I ever get sued they can take my business but not my personal belongings.) Link to comment Share on other sites More sharing options...
shadowdeath Posted January 17, 2015 Share Posted January 17, 2015 Hey mate, as someone who owns a business (and started it at 16/17), if you're going the route of selling the game on other platforms such as Steam, Humble, etc. I'd highly recommend incorporating, possibly as an Inc. (that's what I did), to give yourself further protection and more monetary options before releasing a product. However, you have to keep in mind that starting a business is going to be a bit expensive initially because you're going to have to hire a lawyer or tax accountant to compile and fill out the necessary forms for your state. It's really up to you, but the more money you make the better it is to incorporate. If you're not making very much though, then I guess you should probably ignore everything I just said. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now