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Taxes and hiring help..

05-11-2009, 10:04 AM
#1
Joined: Apr 2009
Posts: 227
Taxes and hiring help..

Question for the devs on here. If I want to hire a graphic designer and we've both agreed to a 50/50 split, how is that going to work with taxes? Am I going to have to pay taxes on 100% of the income?

I don't have an LLC or anything because it was just me. I could use the extra help though and I found someone willing so now I'm just trying to figure out the logistics.

Thanks,
Roy
05-11-2009, 11:06 AM
#2
I think we can cut the 50% from the revenue and mark it as Royalties payment and only record the other 50% as profit. You should consult a professional on this!

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05-11-2009, 11:08 AM
#3
Joined: Apr 2009
Posts: 227
Quote:
Originally Posted by Grumps View Post
I think we can cut the 50% from the revenue and mark it as Royalties payment and only record the other 50% as profit. You should consult a professional on this!
Ya I will be.. I was just curious how other people did it.

I'd imagine Apple sends us a W2 or something, so the IRS might question why we're only claiming 50% of the income.
05-11-2009, 11:13 AM
#4
Joined: Sep 2008
Location: Washington, DC
Posts: 1,151
Quote:
Originally Posted by dangerz View Post
Ya I will be.. I was just curious how other people did it.

I'd imagine Apple sends us a W2 or something, so the IRS might question why we're only claiming 50% of the income.

Apple isn't going to send you any tax forms. You will need to figure out taxes on your own.

And yes, business expenses are tax-deductible, and paying your artist is a business expense. You really should consult with an accountant just to make sure you're doing everything right.
05-11-2009, 12:41 PM
#5
Joined: Jan 2009
Location: App Tech Studios, USA
Posts: 1,363
Quote:
Originally Posted by nattylux View Post
Apple isn't going to send you any tax forms. You will need to figure out taxes on your own.

And yes, business expenses are tax-deductible, and paying your artist is a business expense. You really should consult with an accountant just to make sure you're doing everything right.
Yes, that sounds more like it. WHEN do they pay you though? In April, I earned over $250 in the US, so how long does it take for a monthly sales report in iTunes connect/a check to appear?


Thanks!
05-11-2009, 12:54 PM
#6
Joined: Sep 2008
Location: Washington, DC
Posts: 1,151
Quote:
Originally Posted by WellSpentYouth View Post
Yes, that sounds more like it. WHEN do they pay you though? In April, I earned over $250 in the US, so how long does it take for a monthly sales report in iTunes connect/a check to appear?


Thanks!
According to your contract, they have 45 days after the end of the month to pay you. You should expect a financial report at the end of May/beginning of June, and payment in the beginning/middle of June.
05-11-2009, 03:50 PM
#7
Joined: Jan 2009
Location: App Tech Studios, USA
Posts: 1,363
Quote:
Originally Posted by nattylux View Post
According to your contract, they have 45 days after the end of the month to pay you. You should expect a financial report at the end of May/beginning of June, and payment in the beginning/middle of June.
My b-day is June 3rd, so it sounds like I may get a nice present. A REALLY nice present. In fact, I should buy a car


Thank you!

BTW: A VERY reliable source informed that they have recieved there April check, but no t the report. So apparently they come early sometimes.
05-11-2009, 05:30 PM
#8
Joined: Sep 2008
Location: Washington, DC
Posts: 1,151
Quote:
Originally Posted by WellSpentYouth View Post
My b-day is June 3rd, so it sounds like I may get a nice present. A REALLY nice present. In fact, I should buy a car


Thank you!

BTW: A VERY reliable source informed that they have recieved there April check, but no t the report. So apparently they come early sometimes.
That's so funny! July 3 is also Keith's birthday (my husband/Imangi Studios guru)! Hopefully we'll get a nice present too.

Are you sure your source got their April check, and not their March check? Everyone is receiving their March checks right now.
05-11-2009, 05:32 PM
#9
Joined: Sep 2008
Location: Washington, DC
Posts: 1,151
I need to learn how to read... You said JUNE 3, not JULY 3 Yes, hope you get a great present then.
05-11-2009, 06:58 PM
#10
Joined: Jan 2009
Location: App Tech Studios, USA
Posts: 1,363
Quote:
Originally Posted by nattylux View Post
That's so funny! July 3 is also Keith's birthday (my husband/Imangi Studios guru)! Hopefully we'll get a nice present too.

Are you sure your source got their April check, and not their March check? Everyone is receiving their March checks right now.

It might have been a mistake, I don't know. Well, I guess I will have to wait. Every time I want to check my bank account, I have to ask my mom to check it The monthly sales report (in iTunes connect) should show around the same time that the moneys arrives, correct?


Quote:
Originally Posted by nattylux View Post
I need to learn how to read... You said JUNE 3, not JULY 3 Yes, hope you get a great present then.
Yes, my birthday is June 3rd. My sisters is July 19th. I am sure that I will get a MUCH bigger present from my Grandpa than from the Apple, but it will be nice to have my work pay off.


Best wishes!

Robert
CEO, App Tech Studios