Yeah, like the above posters have said, having an LLC is preety important when you are dealing with entertainment, which is subjective and people may find your games are simalar to theirs or your games made little johnny fail his math class because he was fiending out playing them :) how do you intend to market your games, make them or distribute them? Are you making them yourselves? Hiring a team to do it? I would say, your pipeline for making games, distrubuting them and profiting from them would be more important at this stage then doing an LLC. I would first get your pipeline in place, and all your major stuff setup first (webpage, etc) before you go through all the hassle of LLC. I would also do a competive anaylsis of the competition in the education market. are you doing it locally? Regionally? internationally? There are lots of extenuating factors to consider.

If it is a two men operation then it can not be registered as sole proprietor. It can only be registered as general partnership. The only disadvantage of registering a general partnership is if one partner can not compensate then the liability automatically transfers to the general partner. If you need further assistance you may visit infotaxsquare ---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.

Good advice here about a LLC - which is a partnership in Texas. protect yourself - from others, from the future and from each other. You never know what will happen. Have you thought about licensing the game out to an already established game makers? Thus, you really don't have to do much in regards to a business and you can use their manufacturing, marketing and distribution know how.

Thank you NRiddle for your input! JoyAbuan- Check out the Business Incorporation Guide for information on the advantages and disadvantages of popular business structures. You may want to learn more about about the intricacies in starting a business with your spouse in our blog as well. Don't forget to take a look at the Texas Small Business Guide for help on starting, registering, filing for taxes, licenses and permits in your state. Does anyone else have suggestions?

Now, you're both married, so this advice is being stated to protect both your husband's interest and your interest in this business. You should first use an L.L.C. to limit any personal liability that may arise from your product; especially if children will be using your product. Second, you should BOTH be equal members of the L.L.C., mean both of you own 50% of the business. In many states a sole member L.L.C. can be considered non-marital property; meaning only the marital spouse owning the company has any right to it. Now, I'm not saying you have a bad marriage or need to worry about it. This is just the smart way to handle this business especially if you're married and will be the only two people operating it. You'll also then be able to take tax benefits of double taxation through salaries paid as an L.L.C. Plus, it's easier to obtaining funding\credit\lending with multiple members in an L.L.C. I'd also consider patents on any games or products you design that can legally be patented to protect your ideas from other would-be businesses who thrive on stealing other peoples ideas.