Me and a friend have plans for a small game we can work on and develop. The only thing is, we don’t know how to handle payments. We both have a PayPal, but it would be quite annoying to have to go and divide each profit by 2 and then send it to the other. Is there a way we can simply have each payment split into 2 for both of us?
If you don’t have this figured out, or know how to figure it out yourselves, I’ll advise you take a step back if you’re planning on starting an actual company. (EDIT: your profile says you’re 14. Can you do this legally?)
It also depends (quite a bit) on the type of company: http://www.bizfilings.com/learn/compare-company-types.aspx
Thanks for the link, I learned a good amount. Instead of company, I should have said a small business. We would mainly make free software and probably several purchasable products. Would the link you gave me still be necessary?
Then probably the easiest is have one of you be the “owner” and pay the other “salary.”
Make sure you report taxes etc. as applicable too.
https://www.google.com/#q=how%20to%20split%20profit%20in%20a%20partnership
EDIT: keep in mind I know almost nothing about business. Do your own research, etc.
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(EDIT: your profile says you’re 14. Can you do this legally?)
I hope it is, money would be sent to an adult’s account (for me).
Instead of dividing each profit by 2, you could use a part of the profit to spend on future games.
Another part of the profit can simply be transferred periodically to your and your friends account.
This way future games profit from the money you got from older games, just an idea…
Another thing: Don’t expect to much, there are just to many people making games, i guess it needs some luck to actually be successful with a game.
So create games for fun, not to earn money. If someone likes your game(s) and wants to buy it, thats fine.
You could start thinking about how to split profits once you have a product you could potentially sell. This sounds like you make this into a problem much too soon.
Best not to let money get involved till you’re older. Honestly. Money is the root of all evil.
Cas 
Even if the OP is young and apparently inexperienced, I think it’s unfair to hide him/her the information he/she’s looking for.
It’s quite “easy” to handle online payments, thanks to payment processors
http://www.pixelprospector.com/the-big-list-of-payment-processors/
AND most of them probably enable splitting the pay between several partners
http://www.bmtmicro.com/developer-what-we-offer.html
(look for “Vendor Split / Revenue Share”)
Now go make something worth selling first ;D
Hope it helps
Getting money involved is the best way to end a friendship.
Dont get into that until your have a serious business concept.
If you have (small) money piling up, lets say from advertisement in your Android app,
let it assemble on one account, and then split it in two after a few months.
I highly advise taking a step back and starting much smaller.
You’re approaching this from the wrong angle: instead of starting out trying to make money and start a company, why don’t you just have fun? It sounds like you’re interested in programming, and that’s great. Why not use that interest and invest in yourself by getting as much practice as possible?
You don’t do this by trying to make a profit or start a company (whatever that means). Instead, you do this by just sitting down and programming stuff. You practice, maybe start gaining a following (if you’re lucky), and only then (which might take years) should you start worrying about making money.
But if you’re dead-set on trying to sell your product (which I highly advise against), you might try putting your stuff on Google Play or something like Desura (note: I’ve never used Desura, but it might be worth looking into).
Alternatively, you could think about advertisements instead of sales. Put a banner ad on your website, and if your games are popular enough to attract a following, you might make some money that way.
But seriously, don’t worry about money.
This is just me, but I wouldn’t be worrying about money until you start making it. Words of the wise.
I was just thinking about the future, but it’s probably best to just make free games for fun. Now that I’m realizing that game making is supposed to be fun, I’m mixed on what to choose as a job in the future. Anyways, we will work on something, ignoring any profit.