Monetizing iPhone Apps for 16-year-old developer?

Question

Hey all,

I'm getting tired of creating free apps that are of a high quality, but they don't do much for me. I looked into selling paid apps and iAds, but they both require the intervention of the tax man, who I really don't want to get into trouble with.

What is the best thing I can do, as a 16-year-old developer, to monetize my iPhone app?

EDIT: Sorry, I must be misunderstood. I don't want to avoid the tax man, I'd just like to get money from my app without the intervention of the government, which, by the look of it, doesn't seem possible.

EDIT 2:

I guess, in a way, what I'm essentially asking is, "Would it be hard for me (as a sixteen-year-old) to deal with a paperwork burden that comes with being taxed for iPhone app sales and iAd income?"

Answer 1

Do contract work. I've been doing professional Cocoa development for a couple years now, but don't have any apps on the store listed under my name. I write the code, give it to other people, and then they put it on the store. It keeps my life simpler that way. :)

Answer 2

Bite the bullet and do the tax forms. It's not that bad, and if you need help with it, you could see a tax professional. Being 16, I don't know if you could create an LLC to protect yourself, but your parents/guardian likely could.

Answer 3

What do you mean by "get in trouble" ? You mean, like, "owe taxes"? Sorry champ, it's of the two things you can't avoid, and believe me, the government will happily take money from a 16-year-old with income. :)

If you want to get paid, just pay taxes on the app you're selling, or on the iAd income or whatever. It's what everyone else does, and if it's (say) your only income, the IRS stuff really isn't complicated. App sales is just income, same as you'd have if you were spending your summer scooping ice cream instead of hanging out in front of Xcode. ;)

You don't need to form an LLC to sell software (although you could consider it for liability protection, depending on what the software does.)

Answer 4

What does it matter what your age is? Taxes are taxes whether you are 16 or 60. I paid taxes for money I made at 16 for my goods and services rendered. If you make money for goods and services rendered you will have to pay taxes on it. It's unlikely your taxes will amount to much anyways unless your app hits pretty big. You only start to pay a decent marginal tax rate at $34,000/year so I wouldn't worry about it.

If you can make $20,000 on an app, you shouldn't be too worried about the $2,000 or so you will pay in taxes. If you make $100,000 on an app, then you will be paying more like $30,000 in taxes. But you're still better off than giving it away for free!

Answer 5

I'm already monetizing my iPhone Apps since I was 13. It's completely legal (in the Netherlands), just fill in your real information and ask your parents for permission. No reason why it's not permitted :).

About the taxes, in the Netherlands you can make money under 18 without having to pay any tax till you have reached a limit (per year). I'm not so sure what that limit is, but I thought it was arround a few thousands a year. You should check this yourself in your own country.