67

Might be a better investment to go to a different country and study. The US prices for education are incredibly overpriced (having taught at both European universities and an Ivy league university in the US, I can tell that the education is not much different). It is also easier to get admitted to European universities - the difficult part is to actually ...


52

Drove is an eCommerce platform, not a crowdfunding platform. They provide payment processing services for all kinds of customers. They are just the middle-man, not the organization actually asking for and receiving the donations. So the question is not whether Drove is a scam, it's whether the organization placing those ads is a scam. Your question does not ...


41

The assumption that you should make with any sort of ad like this is that it is a scam. Why? Because if you want to donate money to children in need there are numerous charities that offer a high return on your money. Why is this one bad? In general a "good" charity will post lots of information about how they spend your money or have links to ...


37

He could speak with a financial aid counselor to make sure he understands all of his options, including whether there are any policies/petitions that could take into account his parents' "weird financials". Is his situation really so rare that no one has heard of it? Or can he learn about what the possible outcomes have been in similar cases? While his ...


13

Given his circumstances I would go to a community college for significantly cheaper, and accumulate as many transferable credits as possible. While at the same time working and saving up as much money as possible. After one or two years, transfer to the college of your choice and continue working to pay off tuition. Many if not all colleges offer some kind ...


8

You are wildly over-estimating your taxes. First, remember that your business expenses reduce your gross income. Second, remember that taxes are progressive, so your flat 35% only applies if you're already making a high salary that pushed you into the higher brackets of US and CA. I think the deeper problems are: 1) you are expecting a super early start-...


7

I think you should really start a limited company for this. It'll be a lot simpler to spread the income over multiple years if your business and you have completely separate identities. You should also consult an accountant, if only once to understand the basics of how to approach this. Having a limited company would also mean that if it has financial ...


7

I think you might be missing something important here. If you are running a business, then any expenses that your business incurs are deductible. Yes, Kickstarter would report the full amount. The IRS requires them to report everything that you raised. However, the Kickstarter and Amazon fees would be a business expense. Your cost on the backer rewards are ...


5

In the United States you can't setup your own charity matching site unless you are willing to go though state and federal regulations. If you aren't a charity then peoples donations to your site would not be counted as being a charitable gift, unless the you are regulated by the state a federal taxing authorities. If you want your money to be matched: find ...


4

Usually just telling the charity that you'd like to structure a gift like this will work. Many charities already have donor networks to whom they will forward the notification.


4

Do crowd-sourced funds like this attract enough donations from strangers, or will this avenue of generating funds for him be a waste of my time? It depends. There is no simple answer. There are cases where a celebrity endorsed / requested help for a critically ill patient, and the amount of donations that flowed in were 100 times more than what was required!...


4

Unfortunately it is not possible for an ordinary person to become an accredited investor without a career change. Gaining any legal certification in investments typically require sponsorship from an investment company (which you would be working for). There are reasons why these kinds of investments are not available to ordinary people directly, and you ...


4

Why wouldn't one of the existing crowdsourcing systems meet your needs? Yes, they charge a commission, but they have already addressed the issues you raise and specifically they provide the third-party accounting you want.


4

You don't get to be your own charity collections engine unless you want to do all the legwork (read: legal work) that has been done by companies like JustGive, IndieGoGo, or Amazon Charities -- among other things to license yourself in every state to be a charitable fundraiser*. There are fifty of 'em! to either make your entity nonprofit, and deal with ...


3

If the 7,500 investment was made privately and not through the CrowdCube service, then Small Claims Court may be the only answer.


3

How and when will my taxable event happen? Will it happen when the interest is paid? Or when I take the money off the platform? When the interest hits the platform you have income. This would be treated the same as if you invested in a bond that paid you interest periodically. Of course if this was done as part of an IRA, that would be income within the ...


3

Part D) is the flaw. The corporation would never give dividends to a consumer. They give dividends to shareholders which are investors. Loyalty points are never equity, and this has been specifically designed such that they aren't equity or even property at all. Read the fine print on loyalty point systems it covers this and nobody deviates from this because ...


3

If I understand your question correctly I think the easiest solution would be to use the XIRR formula in Excel. You can have a column of dates, and a column of cash flows, and it will calculate the rate for you. Description Returns the internal rate of return for a schedule of cash flows that is not necessarily periodic. To calculate the internal rate of ...


3

This answer assumes you're asking about how to handle this issue in the USA. I generally downvote questions that ask about a tax/legal issue and don't bother providing the jurisdiction. In my opinion it is extremely rude. Seeing that you applied for an LLC, I think that you somehow consider it as a relevant piece of information. You also attribute some ...


3

There's two big problems here and they are both related to the same thing: You are paying a lot of taxes Your monthly expenses are ridiculous at almost 12K per month The last line says it all: you live in California. CA is a terrible state to do business in. the taxes on this money alone are crushing. Also, while I think you need to re-visit your budget ...


3

I'm pretty sure ads seen on Youtube and Facebook are fraudulent Let's start from ads. Youtube channels they use: https://www.youtube.com/channel/UCSUetMCrhluSXAosJdpMfOQ https://www.youtube.com/channel/UCJ8-HFMVk5o1Qpbpp8-XQ4Q https://www.youtube.com/channel/UCfEurRKF4zbdejjJfwFwD5Q Lots of the ads you see are created by this company: https://turbodigital....


2

If you don't have any voting rights then you don't have much say in the direction of the company. Of course, if the majority of voting rights are held by 1 or 2 people/institutions then you probably don't have much say regardless. That said, 0.1% isn't a whole lot of a voice anyway.


2

There are business that exist by harvesting leads and selling them to other companies. These leads can be access to resumes they sell to business looking for employees; they can be eyeballs that view their adds; they can be list of people that meet a specific credit profile. All are legitimate business and many are growing businesses. But in all these ...


2

Founder makes available 100% equity, but uses a reasonable amount of the proceeds to pay him/herself a salary (or wage) and from that salary invests in the same initial offering to acquire shares for him/herself. I see several problems. What is a reasonable salary? Also, this leaves the door open to the following scam: Founders say that they are ...


2

Crowdfunding can be a legitimate means of funding very small startups. It is an innovative, but obviously risky, method of raising small amounts of money. As such it is now regulated by the SEC under "Regulation Crowdfunding" They have published guides for these types of business startups to help them with required disclosures and reporting requirements: ...


2

EDIT There are limited circumstances (depending on how the company is set up to accept credit cards) where this could be tagged as something other than a normal purchase, and then it's up to your issuing bank to decide how to handle the charges. Frankly I don't know why you'd invest using a credit card. These are startup companies in most cases, many of ...


2

Everything SRiverNet said about investing is good advice. However, I think they're most likely to charge your card as a Security Broker/Dealer (MCC 6211). The Visa document about it says: Merchants classified with this MCC are licensed, in all jurisdictions they sell into to buy, sell and broker securities, stocks, bonds, commodities, and mutual funds. ...


1

Tell him to cut his losses and get out of college while he still can! What a waste of time. Get a specialized certificate from a industry authority and you'll make much more money and spend tens of thousands less on the education! What a gimmick this U.S. college system. Here's a few examples of big money makers: rope access technician, security penetration ...


1

If the "loyalty points" don't convey the right to vote in corporate elections, or a share of the company's assets in the event the company halts operations when its assets exceed its liabilities, then they probably aren't a form of stock. So offering these points might not subject the offerer to regulation by the SEC. But since these points promise the ...


1

Rather than automating it, why not just create a listing that you maintain and display on your site yourself? That way you don't have to give out credentials or anything else. It also presents a bit of a marketing opportunity. You could group contributors by the size of their contributions and thank them publicly. For example, maybe your top contributors ...


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