Game launch and establishing a corp entity
by Konrad Carstein · in General Discussion · 07/09/2008 (12:16 am) · 6 replies
I'm still a good 6-12 months away from a finished game, but it is coming along. In the past with other projects I always got caught up in things like corporation types, liability, taxes.....and all that good stuff.
So when I seriously decided to put my programming experience to work for myself and try to create a game I made the decision to not get caught up in all that stuff until I had some type of product, and actually game, not just an idea.
However, even staying on that track will eventually lead me to a point where I will start to want to create a little bit of "buzz" about the game. Some screenshots, a website, the usual type of teasers. Not to mention before it is 100% ready for the public I may end up needing to hire some outside help for some parts of the game to be completed.
So after that long winded history, I'd like to know if anybody has any opinion or advice on when is a good time to really start the "business" part of the game. I'm find spending a couple of thousand dollars if necessary for an accountant, lawyer and whatever to get things set up right, but I don't want to put the cart before the horse.
At the same time, I don't want to to start throwing news of the game, screenshots, hiring help and such if I shouldn't be doing that until the entity is in place.
Words of wisdom are appreciated!
So when I seriously decided to put my programming experience to work for myself and try to create a game I made the decision to not get caught up in all that stuff until I had some type of product, and actually game, not just an idea.
However, even staying on that track will eventually lead me to a point where I will start to want to create a little bit of "buzz" about the game. Some screenshots, a website, the usual type of teasers. Not to mention before it is 100% ready for the public I may end up needing to hire some outside help for some parts of the game to be completed.
So after that long winded history, I'd like to know if anybody has any opinion or advice on when is a good time to really start the "business" part of the game. I'm find spending a couple of thousand dollars if necessary for an accountant, lawyer and whatever to get things set up right, but I don't want to put the cart before the horse.
At the same time, I don't want to to start throwing news of the game, screenshots, hiring help and such if I shouldn't be doing that until the entity is in place.
Words of wisdom are appreciated!
#2
I think I'm more interested in when to go down that road. Should I be waiting till my project is 100% completed and ready to release, or is there a sweet spot that I should be shooting for?
07/09/2008 (8:24 am)
I'm not as concerned at the moment as to type of stucture. By spending thousands I just meant that if needed I'd pay for professional advice and assistance if needed when it came to that point.I think I'm more interested in when to go down that road. Should I be waiting till my project is 100% completed and ready to release, or is there a sweet spot that I should be shooting for?
#3
07/09/2008 (9:51 am)
I wouldn't think you need to create a business entity until you start to involve more people. Once you hire someone may be a good time. Once you actually release a game may be another time to think about it. If you do go the route of a LLC or whatever, check your local and state (if in USA) web sites for a Secretary of the State web site for business. In Colorado where I live, you can create an LLC for $5 if you do it online.
#4
If you decide to form a corporation -- and the tax benefits for doing so can be huge -- do yourself a favor and check out the Nolo books/resources on self-incorporation for your state. Incorporation requires specific steps to be taken, but they're not terribly complicated, and you can save yourself a good deal of money by doing it yourself. The first time I incorporated, I paid $1500 for a "full-service" law firm to set it up. Thereafter, I did it myself for free and got the exact same results.
If you're ready to publish a game, I'd absolutely recommend incorporating. You really want to insulate your personal finances and liability from the business', especially if wind up on the losing side of a lawsuit.
The type of corporation you choose is important, so do a little research. While you can reincorporate somewhere down the line, it's much easier when you get it right the first time.
Good luck!
07/09/2008 (4:31 pm)
Disclaimer: I Am Not A Lawyer.If you decide to form a corporation -- and the tax benefits for doing so can be huge -- do yourself a favor and check out the Nolo books/resources on self-incorporation for your state. Incorporation requires specific steps to be taken, but they're not terribly complicated, and you can save yourself a good deal of money by doing it yourself. The first time I incorporated, I paid $1500 for a "full-service" law firm to set it up. Thereafter, I did it myself for free and got the exact same results.
If you're ready to publish a game, I'd absolutely recommend incorporating. You really want to insulate your personal finances and liability from the business', especially if wind up on the losing side of a lawsuit.
The type of corporation you choose is important, so do a little research. While you can reincorporate somewhere down the line, it's much easier when you get it right the first time.
Good luck!
#5
The procedure here in Norway is pretty simple - register an org. number ($500) for doing business as an individual/small business, or about twice that for the bigger, tax-evading upgrade with all its protections and benefits :)
Depending on where you live, going corporate may or may not be beneficial.
07/10/2008 (2:50 pm)
There should be some information source in your state/country which can mail out some pamphlets on the procedures. I've been waiting several weeks for my starter-kit, though. If you have something like an (un)employment office, they might even point you to faster ways of getting the documentation that lists all the steps you have to take.The procedure here in Norway is pretty simple - register an org. number ($500) for doing business as an individual/small business, or about twice that for the bigger, tax-evading upgrade with all its protections and benefits :)
Depending on where you live, going corporate may or may not be beneficial.
#6
07/19/2008 (8:33 pm)
I think you're doing things the right way. Take care of it early so that when the game is done, you'll have a stable base to build upon. Releasing the first game for sale is a big deal and there are lots of other things that you'll need to focus on. 
Torque 3D Owner Ted Southard