Posts by Tyler Gonzalez6

Daniel Moore14 said:Hi everyone, looking for some quick confirmation on this.
If I'm understanding the KDP publishing rules correctly, you don't actually need to set up an LLC or a business entity right away. You can just publish as an individual and report your Amazon earnings on your personal tax returns, unless your income hits a certain threshold—around $50,000, if I recall? Thanks.

Of course you can publish as an individual—regardless of how much you make.

Arthur Flores2 said:Is it still like that?
I opened a foreign currency account at JP Morgan Chase, and when I was signing up for Amazon, it accepted all those JP Morgan Chase details. What does that actually mean—does it mean the payments won't land even though everything looks fine on the screen?

Now they’re asking for a TIN. I see other people mentioned earlier that they were asked for different numbers...
Do I need to enter my TIN alongside the HR-pa number, or just enter it as the TIN?
And do I need to activate this TIN somewhere? I heard that's a thing, but I don't know if it's actually true!

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It hasn't. Things have changed.

Arthur Flores2 said:Is it still like that?
I opened a foreign currency account at JP Morgan Chase, and when I was signing up for Amazon, it accepted all those JP Morgan Chase details. What does that actually mean—does it mean the payments won't land even though everything looks fine on the screen?

Now they’re asking for a TIN. I see other people mentioned earlier that they were asked for different numbers...
Do I need to enter my TIN alongside the HR-pa number, or just enter it as the TIN?
And do I need to activate this TIN somewhere? I heard that's a thing, but I don't know if it's actually true!

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Just enter the SSN. Nothing else is required.

This is regarding the installation of Verizon internet. Their USB modem is an Apple device.

redpuma60 said:I beg to differ!
🙂
I really like what
Tyler Gonzalez6 is suggesting, but I'm honestly terrified of doing anything outside the law—especially since my top priority is maintaining my status as a full-time student. I want this to feel more like a side hobby that brings in a little extra cash rather than becoming a full-blown businessman. If things actually start picking up, maybe my parents could set something up under their names so I can sell through them instead...

If all else fails, I'll just hang in there until I finish college (only about 3.5 years left 🙂) and then look into more serious options. Who knows? Maybe things will improve by then.

Actually, no. An equivalent to a sole proprietorship in America would definitely be a small local business, but that’s irrelevant because Americans don't care about our specific business structures. This isn't about literal translation—it's about what the term means to Steam. Everywhere I sell, there's an extra explanation stating that if you are an "individual" with full copyrights, you should select "sole proprietorship"—because they realize that legal definitions vary globally. They aren't going to demand official business registration papers from some other country; the whole point is simply that you aren't a corporation, the income goes directly to you rather than third parties, and you are responsible for paying taxes in your own country while they handle the sales tax and US tax withholding. On every platform I use—even on US tax withholding forms—the "individual" and "sole proprietor" statuses are treated as identical just to make things easier, not to complicate them.

Read Steam's Terms & Conditions carefully and keep a copy—that is your actual contract. It likely specifies exactly what they require regarding "sole proprietorship" and whether they equate it to an individual status to avoid asking for extra paperwork. In my view, on Steam, the only thing that matters is satisfying their requirements; once the money hits your account, you can deal with the IRS.

I'd love for someone to try and force me to register a formal business just because I checked a box on some foreign website—as if they could even find out what I selected, let alone care. The Terms & Conditions clearly state what is being agreed upon, and having a formal business entity isn't a requirement. 🤣 Furthermore, this is essentially a contract where we aren't even selling products ourselves, but rather the platform is facilitating it; any invoice issued to Steam or similar sites would be technically invalid since no physical goods or services are being delivered—only rights are being transferred. 😵 But fine. Go ahead and research more, but if Steam doesn't ask for additional documentation and clarifies its definition of "sole proprietor," then you can select it without issue regardless of how things work back home. Once the cash arrives, you just report the additional income and everyone is happy. I fail to see the problem here.

redpuma60 said:Steam also offers the option to register as a sole proprietorship, and I'm curious about the easiest way to get that set up here in the States.

When I stopped by the IRS and my notary, everyone kept pushing me toward either a sole proprietorship or an LLC, even after I explicitly mentioned I wanted to operate as a private individual. It makes me wonder—is it just part of their job description to pressure us into forming a business entity?

So, what are my options here? I could try selling as an individual—though that doesn't seem particularly lucrative—wait around for things to turn around (maybe?), or just finish my degree, pack my bags, and move abroad to sell there instead. 😕

Well, you can just operate as an individual. You select sole proprietorship, and if they ask for a tax ID, you provide your SSN—you don't need a business tax ID if you aren't incorporated (at least no American company ever asked me for one when I listed myself as a sole proprietor). Now, it all depends on your projected earnings. Starting a full LLC or corporation comes with overhead—you have to deal with various fees and payroll taxes even if you aren't making a dime—and you might risk losing certain student benefits. However, if you're expecting significant revenue right out of the gate, then forming a legal entity actually makes sense. If you report this as secondary income, it might qualify under certain freelance deductions—you should verify exactly what qualifies—which allows for a standard deduction to lower your taxable base; plus, you avoid the risk of paying massive self-employment taxes if your earnings end up being negligible (and you likely won't lose your student status).

The smartest move is to weigh every option against your expected income to see which leaves you with the most take-home pay. Besides, you can always change your mind—start as an individual first, then incorporate once things actually take off. There are plenty of online calculators for freelance income, so just run the numbers—there should be similar spreadsheets for LLCs and corporations to account for taxes and social security contributions.

Carol Price4 said:In the States, a soliti Proprietorship is basically just being a freelancer—that's why they're asking for a taxpayer ID, which is essentially your SSN or business tax number.
Since you're still a student, you don't have many options other than operating as an individual, but honestly, the taxes and payroll hits are brutal—you'll end up handing over about 50% of everything you make straight to the government.

On every platform where I sell my stuff—it isn't gaming, but it is digital—I am listed as an individual/sole proprietor even though I haven't registered a formal business. If they ask for a tax ID (not a VAT number), I just provide my Social Security number.

It’s all useless when the intermediaries are this incompetent. Why on earth doesn't Steam give you the option to select "individual" or "sole proprietorship" during setup? It seems incredibly suspicious that they're insisting on business status. 🤔

Have you looked into whether there's a distributor or middleman available for Steam? It’s true they’d take a cut of the earnings—but if they handle the Steam upload for you, you wouldn't need to register a business or deal with an SSN upfront. They could just pay you out as foreign income—maybe even through a royalty agreement—meaning you'd only pay taxes on what you actually earn. If things really take off, then you can worry about setting up a corporation or whatever else is necessary.