Many aspiring game developers dream of building their own game studio. Some are even eager to immediately register a legal entity—hoping it will make them look more professional to clients, partners, or investors. But rushing into formalizing a company can actually backfire on your career in the game industry.
@lucky_holmes_, a long-time game developer and studio leader, often shares valuable insights on his Instagram account. In one of his posts, he responded to a frequently asked question he receives through DMs:
“How much capital do I need to register a game studio as a legal company?”
Rather than answering it directly, Lucky emphasizes one thing: don’t rush it.
What Is a Legal Company?
Many believe that establishing a Limited Liability Company (LLC), is a must to look legitimate and credible. In simple terms, a LLC is a formal business entity recognized by the state, has legal status, and divides ownership through shares. Having a LLC allows you to sign contracts, obtain licenses, or attract investors more easily.
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However, creating a LL isn’t easy. It takes time, money, and effort. On top of that, running a LCC means you’re also responsible for taxes, financial reporting, and other complex administrative tasks.
Why don’t Rush It?
Lucky mentioned that creating a game itself is already a big challenge for the majority of studio games, especially for the new established one. Lucky emphasizes that before thinking too far ahead establishing a legitimate company. Both affairs require high responsibility and high experience of capabilities.
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Thus, Lucky recommends for any newborn studio game developers to focus on creating and releasing a game first. Ensure that the games are worth playing and ready to be monetized, for example, microtransaction, add it into digital platforms, or ads. That way a studio games are capable to arise first before registering it to LLC.
Experience and Knowledge are Important!
LLC is not only about legality of a company, but also about how we control the finances. In order to establish a legal company, studio game proprietors require enough experience in game development and finance management, also known how to form a solid company team.
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Running both at one moment could be overwhelming and could possibly halt the progress of game studios if the owners were not equipped with enough capability and experience. The burden is unbearable and the risks are too great for a studio owner that isn’t ready.
Learn More With @lucky_holmes_
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@lucky_holmes_ shares tons of educational content about the industry—from creating games and running a studio to real-world insights from years of experience. You’ll discover the mistakes many beginner developers make, learn how to build and manage a team, and understand how to prepare your game for market success.
Don’t miss this free learning opportunity. Visit @lucky_holmes_ on Instagram and start building a strong knowledge foundation for your game industry career. Remember: don’t get blinded by the formality of setting up a company too early. Focus on creating your work and mastering your craft, then handle the legal side. You’ll step into this competitive industry with far more confidence and readiness.