- Form Olivine Labs to hold IP / donation money
Would you mind sharing some more about this?
Sure! The first goal was to make sure that the other developer (and eventually developers
) and I both had equal ownership in the intellectual property. We met and started working over the internet, though a game we both played - so even though we trusted each other, we had that to rely on. Plus, it was cool having our own company anyway, right?
The second goal was to put all donations / sales (and ownership of the bank account) into the company name. This means that you can use things like computer equipment and rent as partial tax-write-offs; it's a bit complex, but there's provisions in the tax form that allow you to write off percentages (like, 75% of your phone bill, or 40% of your rent, etc.) It also keeps you, as an individual, from having to pay taxes on all of that income. It's taxed on the business, and if your business is doing things like investing in hosting, advertising, and other costs, all of that means you'll pay less taxes on the company's income.
I use TurboTax for my taxes, which helps out figuring out the personal taxes. This will be the first year we've filed as a business, so hopefully as we get closer I can help. I also suggest filing for an LLC by yourself; you can find services online that will help you found your LLC, but it'll cost you $250 or more. You can do it by yourself for $50. We filed in the state my co-founder lives in (Georgia) because it was cheaper and the taxes were about the same as where I lived previously (Ohio), but I hear Nevada's a good and easy state to incorporate in, as it can hide more of your personal info. YMMV, but I'd just pick your home state unless you have a good reason to look elsewhere.
Hope this helps!Note: I'm not an accountant, and I don't have a financial background; my co-founder has some contacts who are accountants, so this is what I understand from what he's told me that he understands from them.