App Store Small Business Program • Hacker News Board

Re: App Store Small Business Program

#31

Post by [deleted] » Thu, Dec 03, 2020, 9:46 PM UTC

gjsman-1000 wrote: post #23

tehlike wrote: post #14

Earlier quoted context omitted.

I think you are wrong. If you pass 1M$ in 2020, your 2021 apple tax rate would be 30%. Key parts: If a participating developer surpasses the 1 million USD threshold, the standard commission rate will apply for the remainder of the year. -> Yes. For that year, first 1M is 15% but remainder is 30%. But following year, it's 30%. If a developer’s proceeds fall below the 1 million USD threshold in a future calendar year,…

In that case, Apple is expecting that the odds of somebody making less money in 2022 because of the increased rate compared to 2021 to be very unlikely. I.e. If you sold exactly $1M and were taxed at 15%, Apple takes $150K and you make $850K. Under an increased rate of 30%, that means you would lose money if you made less than approximately $1.25M in the year after, but the odds of someone with $1M in revenue failing…

[deleted]

Re: App Store Small Business Program

#32

Post by dogukanadiguzel » Thu, Dec 03, 2020, 11:34 PM UTC

gtufano wrote: post #21

appleorangepie wrote: post #5

Associated Developer Accounts? It is hard to draw the line here. I have 2 company with different partners. It is so vague if I should add associated developer accounts or not.

Lines seem very clear to me... they are: You have majority (over 50%) corporate, individual, or partnership interest in the ownership or shares of another Apple Developer Program account. Another Apple Developer Program member has majority (over 50%) corporate, individual, or partnership interest in the ownership or shares of your account. You have ultimate decision-making authority over another Apple Developer Progr…

Then what do you think about these scenarios? Me and my partner has a company with 2 different apps right now.

Scenario 1: We open 2 different LLC companies with 50% 50% shares. These 2 companies don't have any majority and decision making authority in each other. Totally independent different companies with same owners. If we transfer 1 app to an LLC and other 1 app to the other LLC.

Scenario 2: I open an LLC as an 100% owner myself and my partner open an another LLC as an 100% owner himself. Totally independent different companies. If we transfer 1 app to an LLC and other 1 app to the other LLC.

Do you think these 2 companies can get benefit from the program in scenario 1 and scenario 2?

Re: App Store Small Business Program

#33

Post by dogukanadiguzel » Thu, Dec 03, 2020, 11:40 PM UTC

jsnell wrote: post #22

Previously on HN: https://news.ycombinator.com/item?id=25135410

But this is a different page. It has the final program features and dates. I think you should undo the dupe as well

Re: App Store Small Business Program

#34

Post by tehlike » Fri, Dec 04, 2020, 1:06 AM UTC

gjsman-1000 wrote: post #15

tehlike wrote: post #12

Earlier quoted context omitted.

Rats of hanoi, cobra effect and all. Apple should have made this like the tax rates, first 1M at 15%, rest at 30%. With this move, apple didn't affect their revenue, while looked good to everyone. From a prior thread [1], this affects very little of apple's revenue. [1] Information from Sensor Tower indicating the App Store cut would apply to an estimated 98 percent of iOS app developers who generate roughly 5 percen…

"should have"? But they did, that's exactly how it works.

See my other comment in this thread.

Re: App Store Small Business Program

#35

Post by tehlike » Fri, Dec 04, 2020, 1:07 AM UTC

RandallBrown wrote: post #29

gjsman-1000 wrote: post #15

Earlier quoted context omitted.

"should have"? But they did, that's exactly how it works.

Not exactly. If I make $999,999 one year, then I'll be charged 15% commission the next year. Let's say I hit $1,000,000 in October of that next year. For the rest of the year I'll pay 30% commission. When the next year starts, I'll pay 30% commission for all the earnings that year. If I fail to make $1,000,000 that year, I'll go back down to 15%.

This is correct, but clarifying the last sentence, you go back to 15% the year after.

Re: App Store Small Business Program

#36

Post by tehlike » Fri, Dec 04, 2020, 1:14 AM UTC

impalallama wrote: post #30

tehlike wrote: post #14

Earlier quoted context omitted.

I think you are wrong. If you pass 1M$ in 2020, your 2021 apple tax rate would be 30%. Key parts: If a participating developer surpasses the 1 million USD threshold, the standard commission rate will apply for the remainder of the year. -> Yes. For that year, first 1M is 15% but remainder is 30%. But following year, it's 30%. If a developer’s proceeds fall below the 1 million USD threshold in a future calendar year,…

Yes, the Tax Rates can be in brackets because you fill them out once a year. Any developers can fill me in but I doubt apple is either holding onto payments so they can apply their tax at the end of the year or “charging” a developer at the end of a year based on how much they make. Apple Tax is on a per transaction basis so while it might be nice if Apple changes every company 15% and then 30% after they made a cert…

It works like marginal rate for the year. If you made less than 1m in 2020, your taxing is 15% on first 1m and 30% on the rest in 2021. In 2022, your tax rate would be 30% since you no longer qualify for this.if you make less than 1m$ in 2022, you start at 15% again in 2023

Re: App Store Small Business Program

#37

Post by stickfigure » Fri, Dec 04, 2020, 5:55 AM UTC

gjsman-1000 wrote: post #23

tehlike wrote: post #14

Earlier quoted context omitted.

I think you are wrong. If you pass 1M$ in 2020, your 2021 apple tax rate would be 30%. Key parts: If a participating developer surpasses the 1 million USD threshold, the standard commission rate will apply for the remainder of the year. -> Yes. For that year, first 1M is 15% but remainder is 30%. But following year, it's 30%. If a developer’s proceeds fall below the 1 million USD threshold in a future calendar year,…

In that case, Apple is expecting that the odds of somebody making less money in 2022 because of the increased rate compared to 2021 to be very unlikely. I.e. If you sold exactly $1M and were taxed at 15%, Apple takes $150K and you make $850K. Under an increased rate of 30%, that means you would lose money if you made less than approximately $1.25M in the year after, but the odds of someone with $1M in revenue failing…

> the odds of someone with $1M in revenue failing to get to $1.25M by next year is very unlikely.

Apps tend to be faddish, especially games. There's an upswing and a downswing. Little stays popular forever.