next »

[Mittens]

I'm in the process of trying to have my game sold on iTunes/App Store and part of the setup process asks me to fill out some information for the US Tax people (IRS?)

Anyway, the question is "Type of Beneficial Owner"

I'm trying to sell this app through my company, so that makes me think i should select "Corporation", but the question could be asking what type of tax the owner of the company falls under, if that's the case, I own the company and I am an Individual, so perhaps i should choose Individual???

Please help me out here, it's really confusing trying to understand US tax when you don't live in the US

[Nix]

You should absolutely not select corporation unless you are, in fact, publishing this game under a corporation registered with your government. Corporations are legal entities, and corporation is not a synonym for company. I don't know what the choices are, but you will usually select "Individual" or "Sole Proprieter" with things like this. You might need to register your "company" name with a local government agency. In New York I would have to go to the country clerk and file for a DBA which would allow me to set up a bank account under a business name as a sole proprieter and legally sell products under that name. I would recommend that you contact someone with more experience dealing with international tax law.

[Mittens]

Yeah, I've already set up and registered my company with the Australian government,
It's a propriety limited company with a bank account set up as well, held in it's name.

But like you said, corporation is not a synonym for company, but then I have no idea if under US Tax laws they are treated the same?

I emailed one random app developer I found asking this same question on the internet, here;s what he said.

To Mark:
> Hi, I found your forum post with Google, saying you worn't sure what Beneficial Owner Type you where on the apple US Tax set up.
> I too have just changed from an Individual enrolment to a company enrolment and was wondering if you found an answer to that question?
>
> Thanks,
> Leigh.



Mark:
Hi Leigh,

I emailed the Apple tax department about this, but got no reply. In the end I just entered 'Corporation', which seemed like the best option. The transition is now complete, so I guess it was the right answer .

Cheers,

Mark

I'm really confused by all this :S

[Nix]

But like you said, corporation is not a synonym for company, but then I have no idea if under US Tax laws they are treated the same?

They are not.

[Fallsburg]

Yeah, I wouldn't just say corporation unless you are actually incorporated.  What are all of the options?


EDIT:
And specifically how did you set up and register your company?  Are you an LLC, S-Corp, etc.?  I'm not an expert, but I'm going to guess that the U.S. and Australia have pretty similar corporate entities.

[Mittens]

The available options are;

-Individual/Sole Proprietor
-Partnership
-Corporation
-Othercrazystuff like Trusts etc.

I haven't heard of LLC or any of those things, my company is set up as a proprietary limited (PTY. LTD.) company. So it is it's own legal entity with private shares.

[Mittens]

From what I could find on google the definition of a corporation is a separate legal entity that can own things etc.
And that would make my company a corporation, since it is it's own legal entity,

So unless anyone has any other insights I think I'll just go ahead and register with the IRA under corporate tax laws, not individual/sole proprietor tax.

[Nix]

You are not a corporation unless you know for a fact you are! Please please please call the IRS (the US tax authorities) or contact your local tax authorities. Misrepresenting yourself could cause a lot of issues. This isn't something that you should just guess about and hope you're right. Sole proprietors still represent legal entities, but the legality of those entities is completely different from the legality of corporations. Do you own shares in your corporation? Does your corporation have a charter? Do you hold share holder meetings? Do you have a board of directors? Do you submit regular filings to your country's corporate regulatory organization? If you claim to be a corporation when you aren't, you will be making a huge mistake and may run into a) delays getting your money or b) loss of your money. Don't joke around with this. Call somebody. If you don't believe me, hopefully you will believe the government.

[Mittens]

Ok, well yes my company does have a board of directors and shares etc.
But to make sure I just tried calling the IRS but they where leaving me on hold for too long, so I gave up (since it's an international call)
Instead I called the Australian Tax Office and asked them about this, they said that my company does classify as a corporation under US tax, so I'm feeling pretty safe in selecting that option now. 

[Nix]

Okay, good

I'm sorry for giving you such a hard time, but this kind of thing can cause a lot of trouble for you if you do it wrong. Good luck with your game and company!

(P.S. the IRS will put you on hold for hours even if it's not an international call )

[Mittens]

Okay, good

I'm sorry for giving you such a hard time, but this kind of thing can cause a lot of trouble for you if you do it wrong. Good luck with your game and company!

(P.S. the IRS will put you on hold for hours even if it's not an international call )

Yeah, It's good that you where concerned, It made me want to be double sure I was doing the right thing, since yeah, the last thing I want is an unexpected fine or bill from the IRS