So recently I have been working on a game and I was wondering if I needed some sort of business license or something like that to sell my game on platforms like steam or itch.io or not. thanks in advanced.
I live in USA Temecula California
Check with store. Doubt those places need it, but you will still need to let the tax man know about your activities.
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Depends on your country. Most countries have an income threshold below which you donāt need to register your business for tax purposes.
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Thank you I plan on letting mr. taxman know xD
Thank you i will look into that. 
I am still open for more answers cause information of any kind is always helpful 
just in case people think this thread is no longer relevant.
What do you mean exactly by ābusiness licenseā?
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You probably need to share more infor for more relevant answers. What country are you in?
For example in Australia businesses with less then 75,000 revenue do not need to apply for an ABN. But tax laws are different from country to country.
Realistically, you need to ask an accountant and/or a lawyer. As @Kiwasi says, we donāt know so much as where you live. Even if we did, though, weāre really not qualified to properly answer those questions. At the very least, a relevant professional in your area should have a piece of paper certifying that they know what theyāre doing (and appropriate insurance in case of mistakes made).
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yes I am sorry about that
I live in USA Temecula California
If you live in the city then start here. Otherwise, find your county website and search for Business Licenses there. Typically you would create start is as a Sole Proprietor, if going alone, though you could incorporate (~$1,100 a year in CA) if you thought you needed to keep your business separate from your personal stuff (House, car, etc.) or were making enough to take advantage of some tax benefits corps offer (Pay yourself āstandardā industry wage and take distributions on which you do not pay employment taxes).
Youāll probably need a local business license (~$100 altogether up here in Roseville, CA; business license, fictitious name check, and home business fee).
You may also need a Sellerās Permit. Not sure on this one for software sales, so check with a certified tax professional (CTP).
You will also need a Tax Identification Number/Employer Identification Number (TIN/EIN) from the IRS so that you can report income on a quarterly basis. This number or your SSN are also used so that places like Steam and Itch.IO can report your income to the IRS (Form 1099). This is how the IRS knows Steam didnāt keep that money the got for your game sale.
Anyways, thatās a very rough overview. Get a CTP/CPA and start with your local business license website, they should get you most, if not all, of the information youāll need.
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That really is useful information now as a side question do i need a business license right away like before I even put up my first game on itch.io/steam or can I wait until I reach like a certain amount of income (while still paying taxes on the income i make of course)
Donāt forget licenses for any other software. I forgot we had used maya to make models in class & I used some in a game I put up. I had to take it down as I might earn 1c from ads which would technically put me in breach of the license (I have to buy a 5k license if Iām making money from the asset)
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I only use unity3D.
So you donāt make your own art or sounds?
The game I am making is a 2D game, my friend and I draw all the textures. and we find sounds off of royalty free sound effect sites.
āFreeā sites can also be a maze of land mines. Some lisences require you to pass on your work for free.
I honestly donāt need to worry about it right now cause i havenāt used one of those sites yet. considering i have a friend who is making the music.
Thanks for the advice though, but can we please get back on topic? xD
There is not much more to say. Go talk to a legal professional or an accountant in your local area.
If you canāt afford that, at least start by scanning the appropriate web pages for the tax office in your local area.
Talk to a tax person. The only reason I can think of to start the business before possible income is to capture any business purchases so they can be written off. Though I donāt remember if you can bring in existing stuff such as a Unity license cost, existing computers, etc. and still write those off when creating the company. Best to talk to a CTP/CPA about all that.
Also, you mentioned a partner, in that case you would want to look into a Partnership business license (or corp if thatās the route you decide to go), as before consult a tax pro, preferably one whose clientele is mostly small businesses.
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Youāre not selling retail or opening a store, so you may not have to do a lot of that other stuff. But California is known for goofy laws, so consult an attorney for real advice. You can incorporate in a different state and get a better price and better tax rates as well - Delaware and Nevada are famous for this. In Missouri, all I had to do was register a DBA (fictitious name), which cost $7. And then all income and deductions were added to my standard tax return.
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