How to Enroll in the New App Store Small Business Program? A Step-by-Step Guide

Apple has announced the new App Store Small Business Program in November, 2020. The program allows reducing the Apple commission on paid apps and in-app purchases from 30% to 15%. You can check your eligibility and more details on the program here. Today Apple started sending emails to invite developers to enroll in the program. Also, the announcement showed up on the App Store Connect account.

First of all, you need to answer some questions to ensure you are fully eligible as a small business. If you own or control more than one developer account you need to list them on the special form when you sign up for the program.

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How to Enroll in the New App Store Small Business Program

The process is pretty simple, you just need to take some steps and submit the form:

1. Make sure you are an account holder in the Apple Developer Program.

2. Review and accept the updated Paid Applications Schedule (Schedule 2 to the Apple Developer Program License Agreement). Just open your App Store Connect account, go to the Agreements, Tax, and Banking section, and accept the agreement – yellow dot.

3. Go to your App Store Connect main page and click Learn More in the App Store Business Program news block.

4. When the form is opened, you will see some questions. First, choose to accept the Paid Applications Agreement.

Answer the following questions:

Do you have a majority (over 50%) corporate, individual, or partnership interest in the ownership or shares of another Apple Developer Program member account?

If you own (51% and more shares) or have an individual Apple Developer Account, choose “Yes”.

Does another Apple Developer Program member have a majority (over 50%) corporate, individual, or partnership interest in the ownership or shares of your account?

Choose the correct one. 99% is “No”.

Do you have ultimate decision-making authority over another Apple Developer Program member account?

Choose the correct one. 99% is “No”.

Does another Apple Developer Program member have ultimate decision-making authority over your account?

Choose the correct one. 99% is “No”.

If you chose “Yes” to answer the first question, you will see a drop-down:

Choose how many Associated Developer Accounts you have and fill out the form below.

Submit the form.

FAQ About the App Store Small Business Program

1. When will my adjusted proceeds go into effect?

Your proceeds will be adjusted fifteen (15) days after the end of the fiscal calendar month in which your enrollment is approved. For example, if your enrollment is approved on February 10, 2024, your proceeds will be adjusted starting March 14, 2024.

2. How do I estimate whether I’m eligible for the program based on my proceeds?

Eligibility is based on your total App Store proceeds, converted into United States dollars (USD), from the previous calendar year. Proceeds are your sales minus Apple’s commission and certain taxes and adjustments. To estimate:

• If your bank account currency is USD: Add the total App Store payments deposited into your bank account in the prior calendar year. Adjust this amount with any taxes and adjustments from the "Payments and Financial Reports" section of App Store Connect.
• If your bank account currency is not USD: Convert your App Store payments deposited into your bank account in the prior calendar year into USD. Use a publicly available exchange rate corresponding with the end of each fiscal month in Apple’s fiscal calendar. Adjust the total USD amount with any taxes and adjustments from the "Payments and Financial Reports" section of App Store Connect.

Remember to include proceeds from any Associated Developer Accounts.

3. Why do I need to list my Associated Developer Accounts?

The program is intended for small businesses and individual developers. If your organization controls other Apple Developer Program accounts, or is controlled by another account that sells digital goods and services on the App Store, the collective proceeds from these related organizations must not exceed the $1 million USD threshold to qualify.

4. How do I know if I have an Associated Developer Account?

You have an Associated Developer Account if any of the following apply:

• You have a majority (over 50%) corporate, individual, or partnership interest in the ownership or shares of another Apple Developer Program account.

• Another Apple Developer Program member has a majority (over 50%) corporate, individual, or partnership interest in the ownership or shares of your account.

• You have ultimate decision-making authority over another Apple Developer Program account.

• Another Apple Developer Program member has ultimate decision-making authority over your account.

5. What details about my Associated Developer Account will I need to provide?

You will need to provide the following details for each Associated Developer Account:

• Name (individual or organization)

• Team ID

• Account Holder email address

• Description of the relationship between you and the account

6. Can I participate in the Small Business Program if I’m on the alternative terms in the EU?

Yes, developers on the alternative terms in the EU can participate. Additionally, for subscriptions after their first year, Apple offers a further reduced commission of 10%.

7. How do app transfers impact my participation in the program?

App transfers are permitted under the program. However, when an app is transferred, the proceeds for the calendar year are associated with all accounts that initiate or accept the transfer of that app. Your eligibility for the program is based on the total proceeds from all Associated Developer Accounts and transferred apps.