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[QUESTION] Shareware sellers, taxes etc

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Most shareware sellers(RegNow etc) says that the deal is made between me and my customers - but in order to do that I need a company. Despite that they allow person without company to sell software with their services... So I'm a little bit confused. How do you cope with this? (maybe there is someone from eastern europe that is doing it?)

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Original post by tomek_zielinski
Most shareware sellers(RegNow etc) says that the deal is made between me and my customers - but in order to do that I need a company.
Why do you need a company? Many individuals sell games via RegNow and other fulfilment services without registering a company.

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Basically this is a good idea to set up a company. Think of it like putting a veil, over your person. Now, you have maybe a car, or other personal property, someone could sue you for for. However, if you were incorporated there would be a "corporate veil" over your assets. Now a veil can be pierced, (from what I have heard, if it really isn't a corporation), but to give you some protection under the law. Another way, this wouldn't protect you is because if they say you incorporated to protect yourself because you were doing something you weren't suppost to do. I'm not a lawyer, perhaps this would be a good question to ask the person posting looking for legal questions. Basically, it helps protect you from liablity.

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Original post by tomek_zielinski
yes I know but normally if you want to sell sth you need own company and in this case they say that it's me that is doing busines, not they?
No, you don't need a company at all. Especially when you are just starting out it is a waste of money. You simply don't need the protections a company offers or the cost it incurs.

Individuals can and do trade/run businesses without actually registering a company. It is called being freelance/sole trader. There are many shareware developers that are sole traders and are working with RegNow and other similar companies.

Talk to a local accountant and they will be able to advise you.

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In the UK you can have a limited company ie CoolgameZ Ltd. This means if the company goes bankrupt your money and house etc are not able to be grabbed to pay your debts. Instead I believe you're banned from starting another ltd company for 10 years, and get a massively bad credit rating. As a sole trader everything you own is fair game if you get sued etc.

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Quote:
Original post by d000hg
In the UK you can have a limited company ie CoolgameZ Ltd. This means if the company goes bankrupt your money and house etc are not able to be grabbed to pay your debts. Instead I believe you're banned from starting another ltd company for 10 years, and get a massively bad credit rating. As a sole trader everything you own is fair game if you get sued etc.
All true. However, as a shareware developer/publisher you wont ever have the sort of debts that could cost you your house. Nor could you be sued for any serious money (unless you do something dumb like steal someone else's game). The worst that could happen is that someone asks for their money back because your game doesn't work on their machine.

While registering a Ltd company offers protection from debtors it also requires that you do all the necessary paperwork, pay to set up the company and keep paying an accountant to file accounts, even if you aren't making any money.

The bottom line is that it takes several years to start generating enough revenue from shareware (you need three or four titles on the market) to even cover the costs of running a Ltd company. Most accountants would advise against it at this stage.

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