Should I register an LLC for iOS development?


I am currently developing an app that I intend to release commercially through Apple for iOS. If that is the only freelance development I am doing, are there any benefits to registering an LLC before signing up for the Apple Developer Program?

I am the only developer working on this project, though I might be paying someone else to do a few graphics for me.

LLC Apps

asked May 9 '12 at 07:00
Dustin Wilhelmi
108 points

1 Answer


The general purpose of having an LLC (or corporation) as a business entity is to protect your personal assets from business-related liabilities. Do you envision needing this kind of protection?

One of the other reasons for incorporating is to take advantage of the established process of issuing stock, if you plan to receive investment or think you're going to sell your company. You can do something analogous with a LLC through something called membership interest, though a corporation is preferred by companies that plan to receive large amounts of investment/want to go public.

If you opt not to form a LLC or incorporate, then your business is considered a sole proprietorship. Raising investment for a sole proprietorship isn't easy, but that may not be your goal at this point. Furthermore, you can incorporate later if your goals change, though there may be tax implications to the transfer of valuable IP from your sole proprietorship to a corporation.

answered May 9 '12 at 11:14
Henry The Hengineer
4,316 points
  • Part of the problem is that I have no idea if I need that kind of protection. I am releasing a camera app that plan on selling for $0.99 - what kind of risk does this expose me to? Doesn't seem like I would need any protection, but I really have no idea. – Dustin Wilhelmi 8 years ago
  • Many legal issues relating to iOS Apps arise over a dispute over intellectual property (e.g. copyright and trademark infringement) raised by other companies. Apple screens for this to some extent already in the review process. Some legal issues may also arise via consumers (i.e. user info./privacy violations). I am not a lawyer so I cannot give you legal advice on the matter, but those issues are some general reasons people form limited liability companies. – Henry The Hengineer 8 years ago
  • OK, that helps - thanks! – Dustin Wilhelmi 8 years ago

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