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A Complete Guide to

the Business Side

of Indie Gamedev

by Miziziziz

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What's this about?

Not about:

Banking

Taxes

Accounting

How to make money

How to market games

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Who I Am

  • Making games since 2013
  • Self employed since Dec 2019
  • 5 commercially successful games (>$1K/month)

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Caveats

  • Not a lawyer
  • Not a financial advisor
  • Self taught
  • USA based πŸ‡ΊπŸ‡Έ
  • Solo dev
    • no employees, no partnerships
    • low expenses
    • do most everything myself

​

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Business Types

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Business Types

Sole Proprietor

Single Member LLC

LLC with S Corp Election

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Sole Proprietor

Pros:

  • Easy
  • No fees

Cons:

  • Risky
  • No tax benefits
  • Quarterly taxes

​

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Single Member LLC

Pros:

  • Safe

Cons:

  • Complicated to set up + fees ($125 in Florida)
  • Annual fees
    • $140 annual report in florida
    • $50 registered agent
    • $99 mail forwarding
  • No tax benefits
  • Quarterly taxes

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LLC With S Corp Election

Pros:

  • Safe
  • Tax benefits(No self-employment tax + some taxes are deducted)

Cons:

  • Complicated to set up + fees (same as LLC)
  • Complicated to pay yourself (payroll + owners draw)
  • More fees (same annual fees as LLC + payroll fees $46/month)

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Taxes breakdown

Savings Calculator

​

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When to be which? (my recommendation)

Sole Proprietor: < $200/month

Single Member LLC: < $100,000/year

S Corp: > $100,000/year

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Side Tip: Saving For Taxes

LLC and Sole Prop(only for >$400/year):

  • set aside 25% each month
  • set reminders for paying quarterly taxes

S Corp:

  • done automatically with payroll
  • set aside 25% of owners draw

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Banking

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When to get a business account

Sole Proprietor: >$100/month

All others: Required

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Types of accounts

  • Checking:
    • Use whatever is easy and local
    • Keep more than minimum and enough for upcoming expenses and payroll
  • Savings:
    • HYSA or 'Money-Market' accounts
    • Set aside for taxes here
    • Put anything not needed for expenses here
    • Currently using Marcus by Goldman Sachs (link)
    • Shop around
    • Look for FDIC insured and DO NOT USE FINTECH(wealthfront, yotta)

​

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Pro Tip: Financial Advisors

Free at banks!

Investing: index funds, IRAs, 401k etc.

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Credit Cards

Always buy things with cards = points/cash back (just make sure no card fee)

Shop around, watch youtube vids

r/churning

Mine:

Chase Sapphire Preferred ($95/year)

Chase Ink Business Unlimited

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Legal

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Just get a lawyer

$250-$300 per hour

Not actually that expensive

My lawyer: Zachary Strebeck

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Contracts

Always have a written agreement

Best to have a lawyer write up contract templates

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Accounting

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Track Everything

Business AND personal expenses

Once or twice a month

Just use spreadsheets: My template

​

​

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Accountant

Go to a good local accountant (~$150)

Do taxes EARLY (like January, don't have to actually pay until April)

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1099 Forms

For contractors you've paid >$600

Due by end of January

w8ben for out of US

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Pro Tip: Get Married

Save a lot of $$$ on taxes

https://www.calculator.net/marriage-calculator.html

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The End