Hey buzztouch gang, I've had a lot of fun this past year making (and selling!) apps. Now that 2011 is over and I look back I have a few questions. 1. I assume everything I made is taxable. Will Apple send me a W-2 or other tax document in the mail? 2. I've noticed more and more apps created by LLC's. I have released all of my apps under my own name. Should I look into starting a LLC? Does it really mean anything? Thanks for any advice you can give! Josh

I'm not an accountant and you should consult one for these answers.... 1. You won't get a W-2 according to Apple's FAQs. 2. I have started an LLC, less for tax reasons than protection from personal liability since I primarily publish medical apps. Not sure there is really much benefit tax wise as it's a side gig for me, and probably yourself too, but I would ask an accountant for a definitive answer. Tim Wolf Apps LLC www.apps4ems.com

LLC is either a partnership or Corporation LLC for tax purposes. If you go corporation figure in the cost of a CPA to do your tax return. The LLC is a method to create a separate identify apart from yourself. Remember Corporations are people to.

I'm not an accountant and you should consult one for these answers.... 1. You won't get a W-2 according to Apple's FAQs. 2. I have started an LLC, less for tax reasons than protection from personal liability since I primarily publish medical apps. Not sure there is really much benefit tax wise as it's a side gig for me, and probably yourself too, but I would ask an accountant for a definitive answer. Tim Wolf Apps LLC www.apps4ems.com

If Apple sends anything (probably will) it'll be a 1099. W-2's are for their employees.

There are a few tax benefits depending on type of LLC, Corporate or Partnership (Individual, think partnership of one.) As for liability, best get insurance, you wrote the app therefore you'll probably be liable, unless it was a third party's fault such as your partner. But that impossible to determine in advance since so many variables.

Wolf Tim, I also primarily do medical apps and am asking about LLCs more because of the liability issue than taxes. Does having a LLC really make a difference? I'm the only developer so either way I'm getting sued, right?

Yes, it does make a difference. Yes, you'll be sued. Yes, having insurance is the biggest protection. What most people don't understand about insurance is that it will pay for your lawyer. Most lawsuits will be dismissed, but there will be a lawyer's tab to pay. It can be very sizable even if you win.

Mutzy, the protections afforded by the corporate veil of an LLC vary state to state. The theory is that the LLC will limit your liability to that of the assets of the corp. For this to be effective you must keep your personal and LLC stuff separate. You can of course be sued by anyone for anything at anytime so nothing is absolute. Check your states LLC charter for what it will and won't do. A good development agreement drawn up by a lawyer and liability insurance to pay the gold digger when someone sues is your best defense, neither of which are cheap. My attorney charged about $1400 to put together the agreement I use.

^^ WolfTim- nice looking app site. awesome use of BT technlogy. LLC is the way to go if you want to protect your personal assets from other peoples stupidy. and we know there are a lot of stupid people out there!

Thank you sir.