Should an independent mobile game developer incorporate a business?

Question

The story is thus: I am on the verge of publishing my first app, but I was thinking whether I should incorporate or not. I am an accounting student, albeit in second year with a budget of $1000. I am serious about the gaming industry and willing to go all in.

But would it be wise to start a company?

I am mostly concerned with taxes and keeping it separately from myself as I have greater plans in my mind.

EDIT:

I was able to determine the costs of incorporating, the paperwork required and how to file corporate taxes. I have definitely confirmed that the corporation will save a lot more taxes than being self-employed in the expected revenue brackets.

Answer 1

In addition to asking an accountant, I would also ask a lawyer. When exploring the same question for myself, I found that one of the benefits of incorporating or forming an LLC is that your personal assets are better protected.

Including asset protection, here are 5 reasons to incorporate:

1. Personal asset protection
2. Additional credibility and name protection
3. Perpetual existence
4. Tax flexibility
5. Deductible expenses

Initially, I thought that as I had so few assets, I should not be concerned. I was glad I was able to do a free consult with a lawyer who advised me to look into forming an LLC. (Ultimately, my planned business idea never panned out. So, I never went the incorporation/LLC route.) Hope this helps!