KickstarterForum.org

Hello!

We're prepping to launch a campaign and have been warned that the money is considered revenue. I was wondering if people had tips about how they'd dealt with a successful campaign?

I've heard conflicting stories about whether an S-corp is the ideal corporate structure etc...

Any advice is appreciated.

Think this thread will help: post14454.html

Basically, I found that you first need to classify the pledges into two types: donations and purchases of the product.

For the tiers where the backers are essentially buying swag or the product, you would then calculate your expenses and subtract them to get your taxable income.

Make sure you set aside approx. 30% of your revenue for taxes. The type of business entity you set up depends on how you want to protect yourself as an individual and who your partners are, but either way - an LLC or an S-Corp, you'll have to pay taxes and it's best to consider any revenue 2 parts operating capital, 1 part tax.

Hi Guys , so am i right to understand that Donations are not taxable and only if you give swag for rewards, then that is taxable ? Thanks