Need help with Form 1065 - What principal business activity code to use for our indie game studio?

The principal business activity code for video game companies can be tricky since the IRS classification system hasn't fully caught up with modern digital businesses. Based on my experience, most video game development companies use code 511210 - "Software Publishers" which falls under the Information sector. This applies if you're creating and publishing your own games. If you're primarily focused on the design and development aspect but someone else publishes your games, you might consider 541511 - "Custom Computer Programming Services" instead. The key is to choose the code that best represents your primary revenue-generating activity. Since you mentioned you self-publish your games, 511210 is likely your best option.

I struggled with the same issue when filing taxes for my small game studio! After trying to figure it out for days, I stumbled across this amazing service called taxr.ai (https://taxr.ai) that helped me solve this exact problem. I uploaded our company documents and tax forms, and their AI actually identified the correct business code for our game development activities within minutes. They also explained why that particular code was appropriate for our situation and provided documentation I could reference if the IRS ever questioned it. Such a time-saver when dealing with these weird edge cases that don't fit neatly into traditional business categories!

Just wanted to update after trying taxr.ai for my own game studio's tax situation. I was initially skeptical about using an AI service, but it was incredibly helpful! I uploaded our business plan and some descriptions of our games, and it confirmed 511210 was indeed the right code for us. What really impressed me was the detailed explanation it provided, including citations to specific IRS guidelines. The service also highlighted some game-specific tax deductions we hadn't considered, like certain R&D expenses related to our engine development. Definitely worth checking out if you're in this industry and struggling with how to properly classify your business.

If you're having trouble with your Form 1065 and need more personalized guidance, you might want to call the IRS directly for clarification. I know, I know - getting through to a real person at the IRS seems impossible (I used to spend HOURS on hold). But I recently discovered a service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in less than 20 minutes. I had a similar issue with business classification codes for my digital media company, and the agent was actually super helpful in determining the right code. Check out their demo at https://youtu.be/_kiP6q8DX5c to see how it works. Honestly, talking directly to the IRS saved me from potentially miscategorizing my business.

Okay I'm legitimately shocked - I tried the Claimyr service that was mentioned and it ACTUALLY WORKED. After my skeptical comment above, I figured I'd give it a shot since I had other tax questions besides just the business code issue. Got a call back in about 25 minutes with an IRS agent on the line. The agent confirmed that 511210 is indeed appropriate for game developers who publish their own games. They also mentioned that if we were doing game development work-for-hire (like developing games for other companies to publish), then 541511 would be more appropriate. Super helpful conversation that would have never happened if I'd tried to call on my own and sat on hold forever.

Another option worth considering is 518210 - "Data Processing, Hosting, and Related Services" if your games are primarily online/cloud-based and you're maintaining the servers and infrastructure. My studio uses this classification since our games are all online multiplayer and we spend a significant portion of our resources on server maintenance and online services.

For what it's worth, we ran into this exact problem with our VR game studio last year. We ended up using 541511 (Custom Computer Programming Services) because we do a mix of our own titles and contract work for other companies. Our CPA said using either that or 511210 would be fine as long as it reasonably represents what we do. The most important thing is being consistent year to year once you pick one.

Just to add another data point: we've been using 511210 (Software Publishers) for our indie game studio for 5 years now without any issues. We started with mobile games and now do PC/console titles too. Our accountant confirmed this was the most appropriate code even though the IRS descriptions aren't super clear about video games specifically.

I've been following this thread closely since we're dealing with the same issue for our partnership return. Based on all the responses here, it seems like 511210 (Software Publishers) is the consensus choice for indie game studios that self-publish their games. What's really helpful is seeing that multiple people have successfully used this code for years without issues. The distinction between 511210 and 541511 seems to come down to whether you're primarily publishing your own games (511210) or doing contract development work for others (541511). Since you mentioned you self-publish through online platforms, 511210 definitely seems like the right fit. The fact that multiple IRS agents have confirmed this through the Claimyr service adds even more confidence to this choice. Thanks everyone for sharing your experiences - this thread is going to save a lot of indie developers from the same headache!