Q: I'm beginning the process of making a game on my own to be released digitally. I'm in Minnesota. Do I need a business?
I have concerns over what degree of personal ownership I would have over a company and if it would effect how flexible i can be, I don't know how taxes would work if I successfully sold the product as myself vs a business. I am also concerned there could be liability risk without one, being that I would be releasing this game to the public and assuming all risks as an individual. Should I setup some form of business? Would it better protect myself? Would it be more or less tax efficient?
A: Properly forming and maintaining a business entity has great advantages. Protecting your personal assets is one. It's hard to determine your current situation. Is this a solo endeavor or are others involved? Will funding from other sources be needed to market the game? What exactly do you mean by a "game?" There may be any number of compliance issues you need to address. I suggest you start by drafting a simple business plan to present to an attorney so you can get an idea of where you stand. You may benefit from working with an established company while maintaining your ownership of the game or going it alone. Please give a business attorney who helps startups a call. You could be risking a lot if you don't do it correctly.
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