Why a company?
Who gets the money?
You joined Kai and Remy at a big moment: our games are nearly ready to launch. Picture Garden Defense going live on Google Play and the App Store. Players start watching rewarded ads, and Google gets ready to pay. Pay whom?
Before it pays anyone, Google asks for a legal name, a signed agreement, a bank account and tax details. Real studios answer all four with one thing: a company.
A company is a "person" in the law
A company is a business that the law treats as its own separate "person". A common kind in the US is the LLC, short for limited liability company. Other countries have their own versions, like a "Ltd" in the UK. To create one, you register it with the government and pay a fee. Ours could be "Superintelligent Game Studios LLC". Once it exists, it can:
- Sign contractsGoogle Play, the App Store and AdMob all ask us to agree to their terms. The company is the one that agrees.
- Own the store accountsThe company holds the developer accounts, and its name shows as the seller on our store pages.
- Get paidStore sales and ad money go into the company's own bank account.
- Own our stuffThe games, the studio name and our website domain can all belong to the company.
Quick check
What is a company, in the eyes of the law?
- A big office building with lots of desks
- A separate "person" that can own things, sign contracts and have its own bank account
- Another name for the oldest person on the team
Show the answer
A separate "person" that can own things, sign contracts and have its own bank account
The law treats a company as its own person, separate from the people who run it. That is why it can have its own name, money, accounts and contracts.
Liability and the shield
Liability means being legally responsible for paying when something goes wrong. Say the studio owes a tool company $500, or someone claims our game copied their art and asks a court for money.
If a person runs a business without a company, they are personally liable: their own savings are at risk. With an LLC, usually only the company's money is at risk. The owners' own savings sit behind a shield. That is what "limited liability" means.
When the shield can crack
- Mixing moneyIf studio money and family money are mixed together, a court may decide the company is not really separate.
- Personal promisesIf an owner personally promises to repay a loan (a personal guarantee), the shield does not cover that promise.
- Breaking the lawThe shield does not protect someone who breaks the law or harms people on purpose.
The shield is strong, but only if we treat the company as truly separate from the people who own it.
Bolt says: This is why the studio gets a bank account of its own. The Bank accounts and taxes lesson in Stage 6 shows how.
Quick check
An LLC usually protects its owners' personal savings if the studio gets into debt or is sued.
- True
- False
Show the answer
True
That is the shield of limited liability. Debts and claims usually stay with the company and its money, as long as the company is kept truly separate.
Contracts: promises the law enforces
A contract is an agreement that the law will enforce. If one side breaks it, the other side can go to court.
Clicking "I agree" counts. Google Play's Developer Distribution Agreement is a contract: it says the store takes a service fee from each sale (the exact rate sits on a linked Google page), what content is allowed, and what happens if we break the rules. When the company signs, the promises belong to the company, not to one person.
Why an adult signs
In most countries, someone under 18 can cancel most contracts they sign. That protects young people, but it means a store, a bank or the government can't rely on their signature. So the law needs an adult to register the company and sign for it.
That makes this real teamwork. A parent signs and keeps the company's yearly paperwork and fees up to date. You read the terms together, ask questions, and decide as a team.
Contract pick
You must be at least 18 years of age to sign up for a Play Console account.
The team is ready to open the studio's Google Play account. Who should click "I agree"?
- Remy, because Remy coded most of Garden Defense
- A parent, for the company, after the team reads the main terms together
- Nobody. Small studios can skip the agreement
Show the answer
A parent, for the company, after the team reads the main terms together
The agreement is a contract, and Google requires the account holder to be at least 18. A parent signs for the company, and reading the terms together means the whole team knows the rules we agreed to.
Next: who owns what we make
Our company exists, at least on paper. Soon it will own our games: their code, art and music. But what does "own" mean for something anyone can copy in a second? And what about art and music that other people made?
Next up is copyright and licenses. Then fan games, open source, player licences (EULAs), names and trademarks, checking what the AI made, and business insurance. The business bank account and taxes come in Stage 6, together with the money.
Bolt says: Phase 4 of our plan goes in this order: company first, then the bank account, then the store accounts. Each one needs the one before it.
Fact-checked 9 October 2026
- SBA: Choose a business structure sba.gov
- Google Play Developer Distribution Agreement play.google
- Play Console Help: Get started with Play Console support.google.com
- Cornell LII: Infancy (minors and contracts) law.cornell.edu
- GOV.UK: Set up a private limited company gov.uk