F-1 Visa and Apple App Store

[alex22]

If you are a resident of another country and have an EIN to sell applications on the Apple App Store, then move to the US for your education on an F-1 visa, must you discontinue selling your applications?

I'm aware that F-1 students are only allowed to work on campus, but the problem seems much more complex than that. You are not technically employed because you have no place of work and do not derive a salary. Your only payment is in the form of royalties from app sales. Additionally, all income would go to the country of residence and be taxed appropriately in that country.

Lastly, what would you put on a W-8BEN? Your EIN or do you apply for an ITIN?

Thanks

 

[Jo1234]

You would have to stop selling the app.
You would be running a company, being self-employed, and you can't do that while in the US on F1.
On a tax return, you would have to declare the income on Schedule C, as self-employed. A big no-no on F1.

 

[TheRealCanadian]

Royalties would be considered passive income.

 

[Jo1234]

Royalties would be considered passive income.

Apple AppStore sales are not royalties. They are sales. Apple acts as agent, and keeps a percentage of the amount.
The company (or individual) offering the app is the seller, and as such, this is active income, which is not allowed without an appropriate work authorization.
As an example, Rovio offers Angry Birds, not Apple.