Probably a bizarre question: Incorporated?

[msd]

Not to be intrusive...

Is it typical for the smallest of the small e-publishers to go ahead and incorporate themselves? Are people simply using company names as trade names unrelated to any corporate entity or is incorporation (in some form) a must to create a small e-publishing op?

In other words, (and I am not asking for and will not construe any answers given as legal advice), can I operate as JoeFanGames while having the $5.00 I make off my adventure sent to Joe Fan personally?

Again, I'm not asking for legal advice. I just would like to hear how the rest of you went about this...

Thanks in advance,
Matt

 

[mroberon1972]

Not to be intrusive...

Is it typical for the smallest of the small e-publishers to go ahead and incorporate themselves? Are people simply using company names as trade names unrelated to any corporate entity or is incorporation (in some form) a must to create a small e-publishing op?

In other words, (and I am not asking for and will not construe any answers given as legal advice), can I operate as JoeFanGames while having the $5.00 I make off my adventure sent to Joe Fan personally?

Again, I'm not asking for legal advice. I just would like to hear how the rest of you went about this...

Thanks in advance,
Matt

Nope... Most e-publishers don't make enough to even show up on the IRS tax radar...

 

[marketingman]

Not to be intrusive...

Is it typical for the smallest of the small e-publishers to go ahead and incorporate themselves? Are people simply using company names as trade names unrelated to any corporate entity or is incorporation (in some form) a must to create a small e-publishing op?

In other words, (and I am not asking for and will not construe any answers given as legal advice), can I operate as JoeFanGames while having the $5.00 I make off my adventure sent to Joe Fan personally?

Again, I'm not asking for legal advice. I just would like to hear how the rest of you went about this...

Thanks in advance,
Matt

Hi Matt,
It is a matter of asset protection vs taxable income. On the electronic front the chances of product liablity is rare, where a store has to worry about who comes through the door and fire and theft.
You should run it by your tax consultant before ruling out incorpating you many just consider a county vendors license from your county auditor.
This will allow you to take deduction for you ISP, Computer, software ect.

If it then builds up you can then incorp in your state or Nevada is a good tax haven.

Just remember aht my accountant taught me "tax evasion is Illegal, but Tax Avoidance is expected."

 

[HellHound]

While the e-publishing business I was originally running is Incorporated (Ambient Inc.), this is because Ambient Inc. is a company that deals in many businesses, one of which was e-publishing d20 products.

However, E.N.Publishing (which I co-own with Morrus), is now the publisher of these products. E.N.Publishing is a registered Ontario partnership, and is not an incorporated business. Incorporation is expensive, and the benefits are insignificant to an e-publisher. We had them as Ambient Inc. because we work in body art and advertising and marketing, where it is nice to have the safety net of the company to get sued without losing all your personal assets in the crossfire.

 

[Dana_Jorgensen]

Here in New Jersey, all you need to do is apply for a state tax certificate and you're good to go for just about any sort of business. At that point, you just need to pass any health, fire, or OSHA code inspections before opening up shop. If you're running a sole proprietorship, you don't even need to worry about a federal tax number.

If you work from home, like a general contractor or e-publisher might, they also have the "DBA", or Doing Business As. This is a seemingly inconsequential document, but once the local banks register it with your bank accounts as an alias, allowing you to accept checks in your name or the company name, without a need to manage multiple bank accounts, which for some sole proprietorships, can turn out to be a necessity.

Just remember, whatever you do, make sure you don't ever screw around with paying your state sales tax receipts properly and on time. The state tax sharks tend to be a lot more viscious than the federal IRS ones.

 

[mroberon1972]

Actually, what I meant is that when I called the IRS to ask about what kind of taxes I'd have to pay, and then gave the income vs cost of doing business ratio, well....

He laughed at me and hung up the phone...

Ouch...

 

[pogre]

Incorporation is expensive, and the benefits are insignificant to an e-publisher.

There are some less expensive solutions than traditional C-Corps, especially if you are in the states. I could foresee a number of benefits to going the limited liability company route or S-Corp as alternatives - especially if you raise capital from multiple sources. Naturally, you must visit with your attorney to see if any of the alternatives are right for you.

In other words, (and I am not asking for and will not construe any answers given as legal advice), can I operate as JoeFanGames while having the $5.00 I make off my adventure sent to Joe Fan personally?

Absolutely, just file a dba form with your local municipality - usually very inexpensive.

 

[Bloodstone Press]

Just remember, whatever you do, make sure you don't ever screw around with paying your state sales tax receipts properly and on time. The state tax sharks tend to be a lot more viscious than the federal IRS ones.

If all your sales are done over the internet, at RPGnow, there shouldn't be any sales tax. States can't tax interstate commerce.

The way the TN tax rep explained it to me was like this:
RPGnow gets a comission, a %, of all sales that are done through their site. THis makes them a wholesale buyer of your product. Therfore, you are selling all your products to a buyer in another state (i.e. interstate commerce) so there is no state sales tax.

Now, here in TN there is a minimum sales tax, perhaps $15 a year, but that isn't much. And if you don't pay it for a couple of years, they don't kick in your door and shoot you.