Hello, I am interested in transitioning my account from Individual to a company. What steps do I need to take to do this? Can I change to the company program with a sole proprietorship? And just send them my TradeName Application? If so, do I have to have an EIN, or can I continue to use my SSN? Thanks!
from everything i read. you need to have a business license.
being a individual is great unless you have 10+ more employees working on app's. if its just you working on apps then why would you need a company account.
gotta think of the benefits and all the hassle.
There are plenty of good reasons to get a business license and sign up for a developer account. It makes your app business more "legitimate" and easier to defend things like business deductions, which can really add up. Even if you aren't making much money, the amount of things you can deduct as a business expense make it very benefitial to be a company.
If you ever want to deal with other businesses, either as a contractor or perhaps you get lucky and a large corporation wants to buy you out, having a legitimate business is important.
Another is asset protection. That's the biggest imo, it means you can't be individual liable in a lawsuit.
This is why I formed my LLC before I even started selling apps. Don't regret it.
Quote:
Originally Posted by mattpoplin
from everything i read. you need to have a business license.
being a individual is great unless you have 10+ more employees working on app's. if its just you working on apps then why would you need a company account.
gotta think of the benefits and all the hassle.
There are plenty of good reasons to get a business license and sign up for a developer account. It makes your app business more "legitimate" and easier to defend things like business deductions, which can really add up. Even if you aren't making much money, the amount of things you can deduct as a business expense make it very benefitial to be a company.
If you ever want to deal with other businesses, either as a contractor or perhaps you get lucky and a large corporation wants to buy you out, having a legitimate business is important.
Another is asset protection. That's the biggest imo, it means you can't be individual liable in a lawsuit.
This is why I formed my LLC before I even started selling apps. Don't regret it.
Thanks for the helpful response, but I have a few more questions. Will you loose some money, do to Tax Purposes? Do I have to give Apple an EIN or can I use my SSN? Thanks
Thanks for the helpful response, but I have a few more questions. Will you loose some money, do to Tax Purposes? Do I have to give Apple an EIN or can I use my SSN? Thanks
Depends on the state. In California it's $800/yr for an LLC. You need an EIN.
But your business deductions should make it worth your while. Any meal you eat where you talk about the app, your macbook, your iphone, your internet, your phone bill. These all become legitimate business expenses.
Depends on the state. In California it's $800/yr for an LLC. You need an EIN.
But your business deductions should make it worth your while. Any meal you eat where you talk about the app, your macbook, your iphone, your internet, your phone bill. These all become legitimate business expenses.
My state is Arizona. I currently make around $100-$500 a month with my Apps. Will I loose it.
Also can you explain to me a little bit more what Business expenses are and how it will help me? Thanks for all the help, I am new to this! Your awesome.
Depends on the state. In California it's $800/yr for an LLC. You need an EIN.
But your business deductions should make it worth your while. Any meal you eat where you talk about the app, your macbook, your iphone, your internet, your phone bill. These all become legitimate business expenses.
They are legitimate if you use them EXCLUSIVELY (or mainly) for business. Obviously IRS doesn't come after every $200 deduction - there is always a bigger fish to fry, but that's the law.
Quote:
My state is Arizona. I currently make around $100-$500 a month with my Apps. Will I loose it.
Also can you explain to me a little bit more what Business expenses are and how it will help me? Thanks for all the help, I am new to this! Your awesome.
You need to learn these things on your own. Talk to your accountant, read a book, take classes. It might be illegal for people to give you advises regarding taxes besides just quoting the actual law. "Free speech" doesn't fly in these cases.
IMHO for $200-$500 it's not worth having a business unless you want to protect your personal assets (if you have).
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My state is Arizona. I currently make around $100-$500 a month with my Apps. Will I loose it.
Also can you explain to me a little bit more what Business expenses are and how it will help me? Thanks for all the help, I am new to this! Your awesome.
I don't understand what that means. Why would you lose the money?
Business expenses are things you can deduct to offset income. I highly suggest you do some research on this. As an app developer you are a business and should be treating it that way. Businesses have a lot of tax benefits. Even if you don't make any money you can save a lot on taxes just by writing off any expenses that are business related.
I agree with that low income it's probably not worth it. When you start getting to the area where you are earning 3-4K a month or more I would get an LLC.
Quote:
Originally Posted by dre
They are legitimate if you use them EXCLUSIVELY (or mainly) for business. Obviously IRS doesn't come after every $200 deduction - there is always a bigger fish to fry, but that's the law.
You need to learn these things on your own. Talk to your accountant, read a book, take classes. It might be illegal for people to give you advises regarding taxes besides just quoting the actual law. "Free speech" doesn't fly in these cases.
IMHO for $200-$500 it's not worth having a business unless you want to protect your personal assets (if you have).
I agree with that low income it's probably not worth it. When you start getting to the area where you are earning 3-4K a month or more I would get an LLC.
defiantly look at that. just cause you earn 2 grand one month wont mean you will earn it on. so you gotta see your numbers per month.
i run a development company. but everything going to the app store is under my contract with them ( individual) and i look at it as im the only person making the application, im the only one in the company but i wanna look professional so why not have a business website to get people. when the time comes i will get my LLC in the state of nevada.
but 3 things you should do just from a marketing point-
1: look at your numbers in the last 4 months and calculate what you make per week.
2: market on facebook, myspace,twitter, tumblr, all that new gen stuff.
3: be a company but a individual at the same time. have a company website but run apps through you. make yourself a license contractor through your own company and make money that way.
I'm going to have to respectfully disagree with 2. Social media is incredibly overrated as an app marketing tool. As are reviews, blog mentions, etc etc.
Word of mouth is the #1 marketing channel for apps by far. How many times have you seen friends show each other apps? I see it all the time. You need to figure out how to make your app so awesome that your users will tell their friends about it.
Case in point, I have a new competitor in my app space that is doing social advertising like no other. Thousands of twitter followers, facebook, even featured on CNN and Jimmy Kimmel.
I was kinda worried but guess what happened after launch? Initial spike but after a few weeks dropped down. I am absolutely killing him in sales.
Spend more time on the product, less on marketing. That's my advice. I didn't do ANY marketing and got into the top 100 overall just fine. The app store really is a self contained ecosystem. Outside marketing really doesn't give you a high ROI when it comes to actual purchases.
Quote:
Originally Posted by mattpoplin
defiantly look at that. just cause you earn 2 grand one month wont mean you will earn it on. so you gotta see your numbers per month.
i run a development company. but everything going to the app store is under my contract with them ( individual) and i look at it as im the only person making the application, im the only one in the company but i wanna look professional so why not have a business website to get people. when the time comes i will get my LLC in the state of nevada.
but 3 things you should do just from a marketing point-
1: look at your numbers in the last 4 months and calculate what you make per week.
2: market on facebook, myspace,twitter, tumblr, all that new gen stuff.
3: be a company but a individual at the same time. have a company website but run apps through you. make yourself a license contractor through your own company and make money that way.
I'm going to have to respectfully disagree with 2. Social media is incredibly overrated as an app marketing tool. As are reviews, blog mentions, etc etc.
Word of mouth is the #1 marketing channel for apps by far. How many times have you seen friends show each other apps? I see it all the time. You need to figure out how to make your app so awesome that your users will tell their friends about it.
Case in point, I have a new competitor in my app space that is doing social advertising like no other. Thousands of twitter followers, facebook, even featured on CNN and Jimmy Kimmel.
I was kinda worried but guess what happened after launch? Initial spike but after a few weeks dropped down. I am absolutely killing him in sales.
Spend more time on the product, less on marketing. That's my advice. I didn't do ANY marketing and got into the top 100 overall just fine. The app store really is a self contained ecosystem. Outside marketing really doesn't give you a high ROI when it comes to actual purchases.
totally agree with mightybao, the product itself is all.
On our most successful app, we have gotten absolutely zero reviews from any major blog site (although we tried). We hardly use twitter and don't use facebook at all. Compared to other competitors who have gotten reviewed in major blogs like TUAW, we are trouncing them. As in the we are in top 75 (category) and they aren't even on the charts.
Make a good app (and price it right) and you'll do fine.
Switch to Company from Individual?
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