How do you go about making a company?

A few of my friends are programmers and they want to start a gaming company and make video games for a living. I believe they have a few flash games under their belt at the moment -- but they want to jump to a more official level.

How do they even go about doing this? Is there a process, and if so, what is it? I can't even wrap my head around how they would get started in doing any of this. They don't want to make AAA titles, but they do want to make bigger, more complex, and more fun games that they could market through STEAM or something.

Any ideas guys?

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cartooner profile pic Alumni

Do you mean legally? Because depending on how they want to organize themselves (LLC, etc.) and the state they are in - it is merely paperwork to become a "company"

valorandvellum profile pic Alumni

Step 1: Start a company Step 2: Profit

Also, I'm liking your lunch list over there.


In case they don't know about it already: this place, including for instance this post (more about the game design side of things). I know I've come across similar interesting stuff in the past, it's all out there.

Steve The Great

I think you probably hire a lawyer and/or accountant and figure out how you want to "incorporate" yourself. Then you file the paperwork and then you sell your shit! Then you pay your taxes ._.


Its different from country to country but because there are three options, a partnership, a limited liability company or a limited liability partnership (LLP) (third option might be uk only).

A partnership is easier to set up, in the UK each partner has to register as self employed with inland revenue (UK IRS) but other than that setting up and running it is relatively easy, the partners are responsible for raising funds and of course you have to keep records of said finances and pay the taxman.

BUT as a partnership if your company runs up debts you personally are responsible for said debts, if your company fails debt collectors could sieze your house and so on.

A limited liability company avoids that risk, basically it means the company is responsible for the debts but not the members of the partners personally so its far safer.

But its a lot harder to set up, you need to appoint a director or a board of directors, under UK law the director has to be someone outside of the company not in the direct running of it (but it might be different in other countries), it also costs more to set up, you get taxed higher and raising money is more complicated.

The third one I mentioned is supposed to be the best of both worlds but I dont know a whole lot about it.

Thats kind of the basics, the terms vary from place to place and there are a hell of a lot more options out there but I'd start by looking for government programs that help out small buisnesses, often they provide advice for free.

When I was in the process of setting up my company I got a buisness bank account and my bank manager reffered me to sources that could help me understand the legal side of things/accounting.


In terms of putting out products, honestly these days its a case of building a product then launching it (the difficult part is getting people to buy said product), if their willing to learn app development they pretty much have two options, Android or iphone.

Android theres no approval process but the market is smaller, iphone app store the market is bigger but you have to be approved by apple and theres a chance you wont.

I'd advise them to read everything about the various sectors of the business and figure out just what the hell their going to make and write a business plan.


hi Phil!

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