I'm looking to run a Kickstarter campaign and I was curious about a few things. Obviously you'll need to pay taxes on the amount raised, if you don't spend it all producing something (expenses). Amazon.com which handles the payments for kickstarter sends out a 1099-K to people who raise more than $20k, which I hope to do.
So here's my questions.
1) Is it better to have the money sent to a business account? Or is it just the same to have the money come into your personal account and then giving it to the business? I ask because I'm looking to shoot a film but haven't setup a business yet. I was going to use the money raised to setup the business as it costs about $1300 to setup an LLC.
2) If you raise the funds in 2012, but don't go into production on your project until 2013, do you end up having to pay taxes on the full amount? If I'm looking to raise $100,000 - every penny of that would go towards the film's budget. However, if I end up shooting next year, a lot of that will end up being taxed. So...is there a way around that besides speeding up the shoot schedule?
Thanks so much!