Company.... ??
Author
Sorry, I didn''t know what this is called, but my best guess was ''registration''. I''ll probably get laughed out of this place for these questions...
LLC, I''ve think this is the smallest and easiest company to own (from bits of information).
Can anyone explain what is the best company type for me (1 person, a possible couple others later). You can stick to the smallest (LLC?) and please explain costs of ''registering'', and if there are any other costs beyond that.. even if I''m not making money with the company. Also, how would I go about getting this done.
Thanx.
There is no simple answer to this.
In the film industry, it''s pretty standard to create a small "company" (usually an LLC) that exists solely for the purpose of the current project. One film, one company, when it''s over it''s over. Everyone involved has a pre-defined role/task, and a designated percentage (of profits, control, whatever) and/or a designated payoff amount once the film makes a profit.
I''ve been wondering if I can make this model work in game-dev...
Anyway, when Samu Games, needed to create a bank account (to cash the checks from a contract we were working on), we created a Delaware-based LLC. (Delaware registration and taxes are cheap, but there are certain complications since we actually live in Oklahoma.) It was real easy to do...we went to a web page, paid ~$500, and were a full-fledged Delaware Limited Liability Corporation in less than 24 hours. The joys of the New World Order.
If you''re curious, we used this web page:
Harvard Business Services, Inc.
If you''re not under a tight deadline like we were, I recommend investigating the LLC options/laws available in your own state.
On the flipside, though, for my other company, DavidRM Software, I''ve just used a standard sole proprietorship setup. It''s worked for me for nearly 6 years now. Pretty easy on the taxes and very little additional paperwork. But I''m thinking I''ll look into forming a real corporation out of it in the near future (and use the oppurtunity to change the name). There are some tax benefits I would like to capitalize on that are simply unavailable to sole proprietor.
Not so much advice as my own experiences. I hope it''s helpful.
DavidRM
Samu Games
In the film industry, it''s pretty standard to create a small "company" (usually an LLC) that exists solely for the purpose of the current project. One film, one company, when it''s over it''s over. Everyone involved has a pre-defined role/task, and a designated percentage (of profits, control, whatever) and/or a designated payoff amount once the film makes a profit.
I''ve been wondering if I can make this model work in game-dev...
Anyway, when Samu Games, needed to create a bank account (to cash the checks from a contract we were working on), we created a Delaware-based LLC. (Delaware registration and taxes are cheap, but there are certain complications since we actually live in Oklahoma.) It was real easy to do...we went to a web page, paid ~$500, and were a full-fledged Delaware Limited Liability Corporation in less than 24 hours. The joys of the New World Order.
If you''re curious, we used this web page:
Harvard Business Services, Inc.
If you''re not under a tight deadline like we were, I recommend investigating the LLC options/laws available in your own state.
On the flipside, though, for my other company, DavidRM Software, I''ve just used a standard sole proprietorship setup. It''s worked for me for nearly 6 years now. Pretty easy on the taxes and very little additional paperwork. But I''m thinking I''ll look into forming a real corporation out of it in the near future (and use the oppurtunity to change the name). There are some tax benefits I would like to capitalize on that are simply unavailable to sole proprietor.
Not so much advice as my own experiences. I hope it''s helpful.
DavidRM
Samu Games
Author
Very prompt :D
Thanks for the information. I''m not under any deadline, so I guess I could look into it a bit.
From your response, it sounds like the company will cost me even if it is not producing anything, not good. If this is true, is there a way to protect my (company) name w/o it costing me past the initial setup?
Also in another thread, in another forum on GD, someone stated that using (tm) w/o the tm''ed object actually being trademarked can cost you--that is you can be fined. I thought ''tm'' was automatic upon creation, just like (c), but registration protects it by law.
I read a bit of the information at the trademark/copyright website.. Does it really cost that much for a logo?
Thanks for the information. I''m not under any deadline, so I guess I could look into it a bit.
From your response, it sounds like the company will cost me even if it is not producing anything, not good. If this is true, is there a way to protect my (company) name w/o it costing me past the initial setup?
Also in another thread, in another forum on GD, someone stated that using (tm) w/o the tm''ed object actually being trademarked can cost you--that is you can be fined. I thought ''tm'' was automatic upon creation, just like (c), but registration protects it by law.
I read a bit of the information at the trademark/copyright website.. Does it really cost that much for a logo?
Im not 100% on this, but I think you are free to use TM whenevery you want. Its the ® (circled R) that you can get in trouble for using. That is for trademarks that have been officially registered.
Always point out when a question or answer is country specific. Here in the UK you want to be .ltd (Limited company) to ensure you arent personally responsible for your companys debts (for example).
You can buy an ''off the shelf company'' in the UK that has all the legal gubbins already set up. I think its about £80 (or thereabouts).
It helps to have an accountant to deal with some of the paperwork, but you dont have to. Amongst other things you have to send some form to ''companies house'' every year and pay them either £10 or £50 as I recall.
http://www.positech.co.uk
You can buy an ''off the shelf company'' in the UK that has all the legal gubbins already set up. I think its about £80 (or thereabouts).
It helps to have an accountant to deal with some of the paperwork, but you dont have to. Amongst other things you have to send some form to ''companies house'' every year and pay them either £10 or £50 as I recall.
http://www.positech.co.uk
A company is a legal entity and for this reason certain proceedures must be followed such as filing accounts every year etc. That costs money, although a dormant company doesn''t cost much to keep going the paperwork/accounts do still need to be done and hence the on-going costs.
As for TM you are right. Putting TM after a logo just tells people that this is your trademark. However you don''t need to do this because just using the logo makes it a trademark (as you said when you mentioned copyright). LordKronos is correct on the ® (circled R). That can only be used if the trademark is registered which costs money.
One point to remember is that a trademark (registered or not) ceases to be a trademark if you don''t use it. Once it lapses someone else can start using it.
Dan Marchant
Obscure Productions
As for TM you are right. Putting TM after a logo just tells people that this is your trademark. However you don''t need to do this because just using the logo makes it a trademark (as you said when you mentioned copyright). LordKronos is correct on the ® (circled R). That can only be used if the trademark is registered which costs money.
One point to remember is that a trademark (registered or not) ceases to be a trademark if you don''t use it. Once it lapses someone else can start using it.
Dan Marchant
Obscure Productions
DavidRM (or anyone else who has formed an LLC),
About the $500 (or whatever the state requires) fee. Is that a one time startup cost, or do you have to pay that out every year?
Also, from what I''ve read, the federal tax issues seem pretty simple (pass through directly to end employees). Beyond that though, I''m somewhat fuzzy. How are LLC purchases such as hardware/software taxed? How about savings accounts (assuming one actually makes money)?
Finally, from your experiences, which seemed easier and/or more worthwhile? LLC or sole proprietorship?
One more note. I fully realize (as should everyone), that anything said here is from personal experience, and not to be taken as legally binding, blah blah. I''m just curious how it''s worked out for someone who has actually done it.
About the $500 (or whatever the state requires) fee. Is that a one time startup cost, or do you have to pay that out every year?
Also, from what I''ve read, the federal tax issues seem pretty simple (pass through directly to end employees). Beyond that though, I''m somewhat fuzzy. How are LLC purchases such as hardware/software taxed? How about savings accounts (assuming one actually makes money)?
Finally, from your experiences, which seemed easier and/or more worthwhile? LLC or sole proprietorship?
One more note. I fully realize (as should everyone), that anything said here is from personal experience, and not to be taken as legally binding, blah blah. I''m just curious how it''s worked out for someone who has actually done it.
The $500 was a one-time setup fee...and included an extra fee for the overnight setup service we received. Had we not been in such a rush, we could''ve paid significantly less.
Yearly fees for the Delaware LLC run about $150 or so. Nothing too strenuous.
We have a CPA handle our taxes for Samu Games. He prepares the Schedule K-1 (US tax forms) that we include when we file our personal taxes. So, yah, it''s pretty much a straight pass-through (income or loss) from the company to the partners.
Sole-proprietorship is cheaper in maintenance fees (i.e., there are none, really), but there are also zippo tax breaks for that. In fact, self-employment tax in the US includes an additional 7.5% FICA that regular employees don''t have to pay (because their employer pays it).
Also, you wouldn''t want to do a partnership as a "general partnership" if you can help it. Get it incorporated one way or the other so you can get some asset protection from your own or any of your partners'' foibles.
DavidRM
Samu Games
Yearly fees for the Delaware LLC run about $150 or so. Nothing too strenuous.
We have a CPA handle our taxes for Samu Games. He prepares the Schedule K-1 (US tax forms) that we include when we file our personal taxes. So, yah, it''s pretty much a straight pass-through (income or loss) from the company to the partners.
Sole-proprietorship is cheaper in maintenance fees (i.e., there are none, really), but there are also zippo tax breaks for that. In fact, self-employment tax in the US includes an additional 7.5% FICA that regular employees don''t have to pay (because their employer pays it).
Also, you wouldn''t want to do a partnership as a "general partnership" if you can help it. Get it incorporated one way or the other so you can get some asset protection from your own or any of your partners'' foibles.
DavidRM
Samu Games
I''m only 13. I should build up my business and game development skills and come back when I''m 18 correct? That sucks. I don''t like having representives having things in their name for me.
This topic is closed to new replies.
Advertisement
Popular Topics
Advertisement
