

Submitting to the App Store as a minor - Joshim5

Hi everybody,
Does anybody have any experience with publishing an application to the App Store while being a minor?  I would publish the app under one of my parent's names, except I would not want to pay taxes under their tax bracket.  Is there a way I could publish the app and be taxed in my own bracket (which is much lower than my parents').<p>Thanks!
======
gonzo
Assuming you're in the US (you don't say), here are the IRS rules on if you
need to file a return (essentially if you have earnings on the app store of
over $5700 in 2010, and probably near the same amount in 2011, _and_ your
parents continue to claim you as a dependent.)

<http://www.irs.gov/publications/p929/ar02.html>

But the Ts & Cs of being an Apple registered developer (which you need to be
in order to become an iOS app developer state that):

    
    
       You certify that you are of the legal age of majority in the jurisdiction in which you reside (at least 18 years of age in many countries) and you represent that you are legally permitted to become a Registered Apple Developer.
    
       Unless otherwise agreed or permitted by Apple in writing, you cannot share or transfer any benefits you receive from Apple in connection with being a Registered Apple Developer. The Apple ID and password you use to login as a Registered Apple Developer cannot be shared in any way or with any one. You are responsible for maintaining the confidentiality of your Apple ID and password and for any activity in connection with your account. Notwithstanding the foregoing restrictions in this Section 1, if you are the parent or legal guardian of individuals between the ages of 13 and the legal age of majority in the jurisdiction in which you reside, you may allow such individuals to share your Apple ID and password for their use solely under your supervision and only in accordance with this Agreement. You are responsible for such individuals’ compliance with and violations of this Agreement and any other Apple agreements.
    

So, in essence, your parents have to be the 'Developer', and you can share
their credentials. Your "parents" will need to submit the app to the App
Store, etc.

~~~
Joshim5
Hi, I am located in the US. Say my parents are the 'Developer'. Will I have to
file the taxes under their tax bracket? Again, the biggest problem is tax-
wise. It's not as a big deal that the app will say my parents published it.
Does Apple deal with the taxes? Do they just send the full 70% that one is
entitled to? Or do they ask for tax information?

Thanks.

~~~
gonzo
If you make more than the minimum, you have to file (if you don't make more
than the minimum, you don't have to file.)

Since your parents are the 'developer', they can probably depreciate the Mac
you're using, and write off the $99/year fee.

Yes, Apple sends the full 70%. Yes, they want a SSN (or EIN) so they can tell
the government (IRS) what they paid (your parents).

Are your parents technically sophisticated enough to deal with Apple, etc?
Perhaps a better option would be to find a kind soul who is already an Apple
registered developer who can publish your app, and pay you a (high) percentage
of the proceeds.

~~~
Joshim5
What do you mean by the last statement? Of course my parents can sign off on
contracts, etc.. They're not programmers, but they don't have to be - after
all, I am the one developing the application. My point is that I do not want
to pay taxes under their bracket. They can submit, etc.

~~~
cookiecaper
I think he's trying to indicate that your parents may have some trouble
dealing with Apple if they're not technically inclined. It just depends on
their personality, they definitely don't have to be programmers, but they
should be able to reason through a process, deal with third parties
(potentially several people within third parties), and be willing to take on
the potential legal and fiduciary burdens without getting frustrated or giving
up.

Anyway, my advice is dangerous and I know little about tax law, but if you can
afford to register an LLC for your projects, you definitely should. It's only
a couple hundred bucks in most states and you can get tax ID numbers from the
feds and the state. These are accepted in lieu of SSN and other personal tax
identifiers. You can file as a disregarded entity and avoid most of the
business-related tax overhead (as long as you register the LLC properly), and
it will just be less confusing all around; the IRS won't have incongruent
numbers for your parents, you won't get taxed outside of the correct bracket,
and you don't have to have anyone's personal info floating around out there.

------
noonespecial
Not the app store in specific, but I remember as a minor the whole "not being
able to enter into a contract" causing me a few problems.

It may be a long shot, but I'd look into having someone help you set up an LLC
that might help you get around some of the issues of being "just a kid".

I know, it's damn annoying being not quite a person, but fight the good fight
and don't be discouraged.

~~~
Joshim5
Thanks for the words of encouragement.

I was thinking about setting up an LLC, though I'm not sure if it will be
worth it in the long run. I would have to pay to start the company, and then
hire an accountant to help file my finances every year.

I am considering it, but it would be better to find another workaround.

