I sure this may be obvious to some. But I'm wondering about the idea that several people get together to build a game. The game makes money, and they distribute it between them. Do they need to form some sort of legal entity for tax purposes or other reasons. I'm presuming there is no legal requirement to do this. This is in the US, and specifically Wisconsin.
It seems an obvious no, but I'm wondering about how they report the source of the income, and if there is any thing wrong with no combined legal entity.
I'm also viewing this with the idea/agreement that each individual has equal rights to the software. I.e. all the income is not reported as if it went to the game for one person, but more as if it were evenly distributed to the owners.
Edited by Dan Violet Sagmiller, 21 February 2013 - 02:24 PM.