I finally managed to talk to a CPA about incorporating GBGames. I had done a bit of research, but it seems odd that there wasn’t a simple bullet list of items to look at regarding incorporation. I mean, if the government knows what I need to do, why can’t I find a simple list? File articles of incorporation, send in a check, send a form to the IRS, and then…what? I found that I would need a Federal Tax ID, which I could request, but I also learned that there are certain responsibilities such as recording minutes for meetings and paying for the privilege of filing annual reports. I also didn’t realize that even though I don’t plan on hiring anyone, I would be considered an employee of the corporation. The descriptions of the employment laws that I’ve been ignoring up until now will need to be looked over in more detail. I’m sure there is one or two things I’m leaving out, but suffice it to say that it would cost me money and time to maintain the corporation.
And so the CPA suggested that a corporation would be too much effort and cost for very little gain. I had originally decided not to go for a Limited Liability Company, but he advised that while it cost more up front, the maintence of the company would be a lot simpler in this form.
I am planning on running this business part-time initially with no outside investment. I don’t want to hire employees, although I will contract out certain work. I also don’t believe I’ll be able to make any income for some time (I’ll need a game to sell first), and even then I won’t be able to live off of it for maybe a year or four. For now, an LLC sounds a bit more appealing. I can always form an S Corporation later, specifically when I start looking at much more serious income and/or start running it full-time.