Submitting to the App Store as a minor | Hacker News Reader

Submitting to the App Store as a minor

2 pointsJoshim57 comments

Hi everybody, Does anybody have any experience with publishing an application to the App Store while being a minor? I would publish the app under one of my parent's names, except I would not want to pay taxes under their tax bracket. Is there a way I could publish the app and be taxed in my own bracket (which is much lower than my parents').

Thanks!

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Assuming you're in the US (you don't say), here are the IRS rules on if you need to file a return (essentially if you have earnings on the app store of over $5700 in 2010, and probably near the same amount in 2011, and your parents continue to claim you as a dependent.)

http://www.irs.gov/publications/p929/ar02.html

But the Ts & Cs of being an Apple registered developer (which you need to be in order to become an iOS app developer state that):

   You certify that you are of the legal age of majority in the jurisdiction in which you reside (at least 18 years of age in many countries) and you represent that you are legally permitted to become a Registered Apple Developer.

   Unless otherwise agreed or permitted by Apple in writing, you cannot share or transfer any benefits you receive from Apple in connection with being a Registered Apple Developer. The Apple ID and password you use to login as a Registered Apple Developer cannot be shared in any way or with any one. You are responsible for maintaining the confidentiality of your Apple ID and password and for any activity in connection with your account. Notwithstanding the foregoing restrictions in this Section 1, if you are the parent or legal guardian of individuals between the ages of 13 and the legal age of majority in the jurisdiction in which you reside, you may allow such individuals to share your Apple ID and password for their use solely under your supervision and only in accordance with this Agreement. You are responsible for such individuals’ compliance with and violations of this Agreement and any other Apple agreements.

So, in essence, your parents have to be the 'Developer', and you can share their credentials. Your "parents" will need to submit the app to the App Store, etc.

Hi, I am located in the US. Say my parents are the 'Developer'. Will I have to file the taxes under their tax bracket? Again, the biggest problem is tax-wise. It's not as a big deal that the app will say my parents published it. Does Apple deal with the taxes? Do they just send the full 70% that one is entitled to? Or do they ask for tax information?

Thanks.

If you make more than the minimum, you have to file (if you don't make more than the minimum, you don't have to file.)

Since your parents are the 'developer', they can probably depreciate the Mac you're using, and write off the $99/year fee.

Yes, Apple sends the full 70%. Yes, they want a SSN (or EIN) so they can tell the government (IRS) what they paid (your parents).

Are your parents technically sophisticated enough to deal with Apple, etc? Perhaps a better option would be to find a kind soul who is already an Apple registered developer who can publish your app, and pay you a (high) percentage of the proceeds.

What do you mean by the last statement? Of course my parents can sign off on contracts, etc.. They're not programmers, but they don't have to be - after all, I am the one developing the application. My point is that I do not want to pay taxes under their bracket. They can submit, etc.

I think he's trying to indicate that your parents may have some trouble dealing with Apple if they're not technically inclined. It just depends on their personality, they definitely don't have to be programmers, but they should be able to reason through a process, deal with third parties (potentially several people within third parties), and be willing to take on the potential legal and fiduciary burdens without getting frustrated or giving up.

Anyway, my advice is dangerous and I know little about tax law, but if you can afford to register an LLC for your projects, you definitely should. It's only a couple hundred bucks in most states and you can get tax ID numbers from the feds and the state. These are accepted in lieu of SSN and other personal tax identifiers. You can file as a disregarded entity and avoid most of the business-related tax overhead (as long as you register the LLC properly), and it will just be less confusing all around; the IRS won't have incongruent numbers for your parents, you won't get taxed outside of the correct bracket, and you don't have to have anyone's personal info floating around out there.

Not the app store in specific, but I remember as a minor the whole "not being able to enter into a contract" causing me a few problems.

It may be a long shot, but I'd look into having someone help you set up an LLC that might help you get around some of the issues of being "just a kid".

I know, it's damn annoying being not quite a person, but fight the good fight and don't be discouraged.

Thanks for the words of encouragement.

I was thinking about setting up an LLC, though I'm not sure if it will be worth it in the long run. I would have to pay to start the company, and then hire an accountant to help file my finances every year.

I am considering it, but it would be better to find another workaround.

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