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 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 ...


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 ...


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

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 ...


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

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

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 ...


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

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

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 ...


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

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 ...


1

Specifically I was wondering, how can the founder determine an appropriate valuation and distribution of shares; ie- the amount of equity to make available for public vs how much to reserve for him/herself. This is an art more than science. If markets believe it to be worth x; one will get. This is not a direct correlation of the revenue a start up makes. ...


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 ...


1

but what about non-identifying information like emails or even telephone numbers? Are you allowed to do this? Most countries have privacy laws that would explicitly forbid companies from selling data not just to other companies, but even to other divisions within the company without explicit approval from customer. There are adequate regulatory controls ...


1

You can only claim an input tax credit if tax was actually collected by the seller, irrespective of whether it should have been or not. You need to contact the seller to request an invoice that shows the GST/HST, if any, as well as the seller's GST/HST number, which is required to be printed on invoices. If the seller is not including GST/HST in the prices ...


Only top voted, non community-wiki answers of a minimum length are eligible