iOS EU Individual Developer - any papers needed?

[gigix]

Hello.

I want to start selling applications on App Store as an Individual Developer. Do I have to incorporate or fill tax forms? Will I have to fax any documents?

I've read in some places that you need to send them some kind of invoice copies before they actually send you your money. I don't see how I could invoice anybody as an individual.

Am I missing something? I don't have the money to incorporate (around $500 here), and I don't want to spend $100 on the program if I will get stuck later because of this.

 

[caveman_uk]

You don't need to incorporate. At least in the UK you don't. We have three forms of business and one of them is a 'sole trader' which means basically you're trading as yourself, your income is treated as any other income for income tax and you are personally liable. AFAIK we have no equivalent of a US LLC company. The business rules in your country may be different and it maybe a good idea to look into this.

Have you signed up for the iPhone Developer Program and paid your fee? If you have then much of the info you ask for is in iTunesConnect.

https://itunesconnect.apple.com

In essence once accepted you can release free apps on the AppStore. To release paid-for apps you need to fill in a bunch of forms for Apple (banking details etc) and have your contract approved (this takes a few weeks so sort all this out in advance). You are also strongly advised to sort out the Tax info as well as if you don't fill out the correct forms for the US IRS then Apple will withhold an additional 30% of your income to pay US taxes. If you fill the forms then they won't do that.

You don't need to send any invoices or anything like that to get payment.

 

[jnic]

AFAIK we have no equivalent of a US LLC company.

UK limited companies are pretty much analogous to LLCs aren't they? Limited liability, ownership by shares, etc.

 

[caveman_uk]

They are similar in their liability but AFAIK there is rather more involved in creating and running a limited company than there is an LLC. There are legal obligations that apply to being a Limited company - such as filing company accounts every year and also having the company name displayed prominantly on it's registered offices.

 

[Sledgenet]

On a related note, is it more appropriate for a UK sole trader to enrol as an individual or as a company? I can't find any guidance on this at the moment and guess that it will become obvious only after choosing the wrong option!

 

[Pring]

On a related note, is it more appropriate for a UK sole trader to enrol as an individual or as a company? I can't find any guidance on this at the moment and guess that it will become obvious only after choosing the wrong option!

Individual. Unless you're registered at Companies House then you're not a company.

 

[Sledgenet]

Thanks for the clarification.

 

[mpatric]

You don't need to send any invoices or anything like that to get payment.

Not quite true. I'm in the UK and in order to get my UK and EU payments I have to send an invoice to Apple, as described in the email they send when the financial reports become available:

The following applies to EUROPEAN ENTITIES ONLY:
Hardcopy invoices are required for payments to be processed.

Please enter the billing address on your invoices as below:
(Address removed)

Please send a hardcopy of your invoices to:
(Address removed)


Michael.

 

[caveman_uk]

I've not had that in ANY emails I've been sent about financial reports. They all look the same regardless of region.

Are you registered as an individual developer or a company?

EDIT: On looking into this it seems that in the past you did have to send Apple an invoice if you were in the EU. Now you don't...which is probably why I've never been asked for one (my iPhone app has only been out a month so I've only had one set of reports).

 

[mpatric]

EDIT: On looking into this it seems that in the past you did have to send Apple an invoice if you were in the EU. Now you don't...which is probably why I've never been asked for one (my iPhone app has only been out a month so I've only had one set of reports).

Ah, that would explain it!