Do I need a company to sell games on steam?
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I'm currently working on a small game I want to sell on Steam, but I want to know if I need to have a company to sell my game on it or can I just sell it through them without one?
Regardless of Steam requirements you have to check out the laws in your country regarding taxes. In my country it is not that uncommon to not realise that income from a "hobby" will be subjected to taxing. Unless you can prove that in fact it is a hobby, which means that the sum of evertyhing involved shows that you loose money (very simplified). But considering the tax authority in my country, if I sell through some distribution net I will be subjected to taxes for the income (since the use of a distibution shows intent on making a profit), and to be able to reduce that tax I must have an acceptable accounting of costs, incomes and assets associated with that income. If those requirements are not met I would have no chance of reducing the taxes since I can't prove that those costs are related to the income. Exactly what a company must do.
Well, at least call the tax authority and ask if you do not know what will apply. If one is unfortunate and subjected to a tax audit and they find out that you need to pay more taxes.. well, then one must have the money to do so =)
Somewhat ironic someone stated in my country
"In a court of law you are not guilty until proven otherwise. But with taxes you are always guilty until you can prove otherwise". This can be very true in my country because there is no way of getting out of their demands if you don't have an account that proves otherwise.
Well, at least call the tax authority and ask if you do not know what will apply. If one is unfortunate and subjected to a tax audit and they find out that you need to pay more taxes.. well, then one must have the money to do so =)
Somewhat ironic someone stated in my country
"In a court of law you are not guilty until proven otherwise. But with taxes you are always guilty until you can prove otherwise". This can be very true in my country because there is no way of getting out of their demands if you don't have an account that proves otherwise.
Basically, the tax man is gonna come for your soul!
In the UK, you'd have to be at least registered as self employeed and do annual self assessment - the more you earn the more complex that gets.
In the UK, you'd have to be at least registered as self employeed and do annual self assessment - the more you earn the more complex that gets.
Quote:Original post by Butabee
I want to sell on Steam, but I want to know if I need to have a company to sell my game on it or can I just sell it through them without one?
They have a "contact us" link on their web page.
If you are serious about wanting to publish with them, then you better get comfortable with emailing them to ask questions.
As for the having a company or being an individual, they will most likely prefer a business entity. Setting up a business is trivial in most places. Around here it can be done in just a few hours and for around $50.
For further information on setting up a business I suggest checking out the Small Business Association.
That saying you're in the U.S. of course. It's got everything you could possibly want to know about start-up businesses and the processes involved.
That saying you're in the U.S. of course. It's got everything you could possibly want to know about start-up businesses and the processes involved.
In Australia you'd set yourself up as a "sole trader", which means you get a company name/number for the purposes of business, but you don't need company bank accounts / offices / etc - it's just you as a person taking responsibility for everything.
Author
Quote:Original post by Christopher Loyd
For further information on setting up a business I suggest checking out the Small Business Association.
That saying you're in the U.S. of course. It's got everything you could possibly want to know about start-up businesses and the processes involved.
Thanks, I'll check that out after I hear back from the Steam guys.
Be aware that you want to set up the correct business type in order to protect your personal assets and to make sure you're setting yourself up for the best tax situation you can.
For example, in the US, if you set up as a sole proprietorship or partnership, and your game crashes someones PC causing them to loose data, its possible that they can come ofter you -- but the really scary part is that neither of these business types protect your personal assets! In other words, if they can prove damages that exceed the value of the company, they can come after you personally, and that debt may be settled through your personal savings, house, car or wages. Also, with sole proprietorships and partnerships, income is generally considered personal income and is taxed as such. This is quite limiting from a taxation standpoint -- other options, such as those below, allow you to keep the money in the business if your other income avenues are sufficient, which may be a better long-term financial strategy.
Two better business types would be LLC (Limited Liability Corporation) or an S-Corp. The former is easier to setup, being not much more difficult or expensive than a partnership. The latter is more involved but is better suited for long-term growth (eg, offering stock either publicly or privately, mergers/aquisitions) and there are more tax-breaks to take advantage of, IIRC. Both of these options protect the personal assets of those involved with the business.
Make sure you research the different kinds of business structures available to you, and preferably consult someone who specializes in setting up businesses who can help you choose what's right for you.
For example, in the US, if you set up as a sole proprietorship or partnership, and your game crashes someones PC causing them to loose data, its possible that they can come ofter you -- but the really scary part is that neither of these business types protect your personal assets! In other words, if they can prove damages that exceed the value of the company, they can come after you personally, and that debt may be settled through your personal savings, house, car or wages. Also, with sole proprietorships and partnerships, income is generally considered personal income and is taxed as such. This is quite limiting from a taxation standpoint -- other options, such as those below, allow you to keep the money in the business if your other income avenues are sufficient, which may be a better long-term financial strategy.
Two better business types would be LLC (Limited Liability Corporation) or an S-Corp. The former is easier to setup, being not much more difficult or expensive than a partnership. The latter is more involved but is better suited for long-term growth (eg, offering stock either publicly or privately, mergers/aquisitions) and there are more tax-breaks to take advantage of, IIRC. Both of these options protect the personal assets of those involved with the business.
Make sure you research the different kinds of business structures available to you, and preferably consult someone who specializes in setting up businesses who can help you choose what's right for you.
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