If you start an LLC/LLP/Corp, you will be paying some amount of money in fees and taxes each year to keep it in existence. Where I am in Rhode Island, USA, thi

If you start an LLC/LLP/Corp, you will be paying some amount of money in fees and taxes each year to keep it in existence. Where I am in Rhode Island, USA, this is $500 for minimum corporate tax (applies to LLC/LLP as well), and a $75 filing fee for an annual report. You will also may want to hire an accountant to prepare your corporate / LLC tax return / schedules, especially in your first year. In short, if you are going the LLC/Corp route, expect to add $1000 per year in overhead, plus at least a dozen hours in time. I personally would wait (you are already a sole proprietor by default) and then if you start making some decent money look into it again. It is possible to transition an app from a individual to a company account, but there is some footwork involved. Keep in mind, you will not be reaping any tax benefits of incorporating until you are making actual money. Your decision to incorporate / form an LLC at this point should be driven only by the amount of risk you are personally taking on in potential liability. I would suspect for most free applications, you won't have much to worry about. But if you're sitting on a pile of money and are writing an app that some how might inspire someone to sue you, you might want to think about it.