Indie Dev Incorporation — When Should You Form a Company?

Indie Dev Incorporation — When Should You Form a Company? The "should I incorporate?" question has a break-even answer rooted in tax math. Sole Proprietor vs Corporation Tax Rates (Japan) Sole proprietor (income tax + resident tax + business tax): Taxable income ¥3.3M–¥6.95M: 20% + 10% = ~30% Taxable income ¥6.95M–¥9M: 23% + 10% = ~33% Taxable income ¥9M–¥18M: 33% + 10% = ~43% Corporation (corporate tax + local taxes): Annual income ≤ ¥8M: corporate tax 15% + local = effective ~21% Annual income