

Ask HN: Solo app-developer, to incorporate or not incorporate? - iaw

So I'm working on an iOS app that could bring in a fair amount of revenue (compelling product with no direct competitors).<p>What I'm trying to ascertain is whether it makes sense to try to incorporate/start an entity or to publish as an individual.  Anyone with some experience on either end care to chime in?  I don't ever expect this project to go beyond me and the single app.
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yurka
A couple years ago I wanted to publish an iPhone app under a business name but
I was a solo developer with no clue about the legal aspects of starting a
business. In the end what worked best for me was registering a DBA /
Fictitious Business Name, which for a modest fee and a trip to downtown
allowed me to pick a business name to use in the app store.

If you go the single member LLC route (which I found in my case was overkill),
note that California has an $800 minimum tax. If you register in Delaware and
want to do business in your local state (e.g. open a bank account), you'll
probably have to register as a foreign corporation and pay any applicable
local taxes in addition to Delaware's fees.

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iaw
Thank you. I think a fictitious business name may be the best route for me, I
don't know if I want to throw the cash at creating an entity if there isn't a
clearly defined benefit.

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slater
I was always under the assumption that you should incorporate, if only to
avoid (some?) financial risk if Patent Troll Company #981271 comes forward
with a "Method or Apparatus for [whatever your app does]" patent and sues you
for $bajillions$

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iaw
Thanks. That's the impression I'm under as well and there will be a small risk
of litigation that I've already recognized.

The problem with incorporating is that I've heard that the legal shielding
properties of corporate (or llc) status are not that protective for sole-
proprietors and that the company's liability is still the owner's liability.

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thejteam
Depends on how big the potential judgement is. If you are looking at small
numbers, then nobody is going to go through the work to prove you personally
liable unless you really screwed up and made it easy. If you are looking at 10
million dollar judgements... if this is a risk buy liability insurance.

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nanijoe
I would publish the app first and see what the returns are like, before I
worry about incorporation.."A compelling product with no direct competition" ,
usually means the product is not-quite-so-compelling

