A Business Question

[HeWasLikeAGhost]

So when my dev team have our finished product and we want to put it on the market do we need to register our company or how does that work?

[StackOfBits]

In Denmark, you don't have to register a company when it doesnt exceed a yearly income of 50 000 DKK,-. I don't know about your country, unless you of course live in Denmark

[krilik]

If you plan on making money from it then I would say yes.

But, and not to be discouraging, the likelihood that you will be running a successful video game company right away is probably really slim, and in my opinion won't be necessary to register as a business until you are.

If your intent is to make profit by making video games and you intend to keep doing it, then register as a business. If you are just making games as a hobby, and you happen to make some money selling them, don't worry about it until you start making money to the point where its either 1) On a regular and consistent basis regardless if its $10 month or $1000 a month or 2) You make a substantial amount of money in a year.

[dandymcgee]

You can sell your own original work without having any sort of company. However, if your game did end up becoming the next Minecraft you would certainly want to consider creating a legally recognized business if not only for taxes.

[avansc]

Dandy is exactly correct, nothing stops you from trading under your name, but if you wanna get any tax exemptions, you need a business entity. (you can do it trading under your name, but its much harder)

[HeWasLikeAGhost]

Thanks for the tips guys. I'm wanting to sell games on a regular basis, but of course I'm going to think more about it. ;]

[MadPumpkin]

Actually thanks Dandy and Avan, I've been kinda wondering this too. :P but what would I do? I can technically just say, "use this form to pay 10$, then download the game *here*" or would I have to still go about some even more under the table sort of way such as just trading people I know 10$ for the game? I mean, I may end up doing both, but legally I can do the first?

[dandymcgee]

Actually thanks Dandy and Avan, I've been kinda wondering this too. :P but what would I do? I can technically just say, "use this form to pay 10$, then download the game *here*" or would I have to still go about some even more under the table sort of way such as just trading people I know 10$ for the game? I mean, I may end up doing both, but legally I can do the first?

Yeah, you'd just generate links like the Humble Indie Bundle guys. The customer pays and receives a link to their personal download page. There's some sort of limit in the U.S. before you would be expected to start paying taxes on it, but if you sold $1000 worth a year I highly doubt would bother you about the unclaimed income. Again, with any significant amount you would definitely want to claim it under a company or you'd likely end up paying out the ass for personal income.