Jim Henderson wrote:
> I don't know; our local community organization recently submitted 
> paperwork to reinstate their non-profit status as a 503(c)(4) non-profit, 
> and I don't know that there was any cost.

Dunno. Even setting up an maintaining any corporation can be expensive. At 
least in the USA.  California has $800/year tax, a registration fee every 
year, and if you do business somewhere else you have to register there and 
pay for a resident agent. You undoubtedly have to maintain a separate bank 
account and file taxes for the thing, which is time and energy better spent 
improving POV or otherwise getting on with a life.

>>> But if the contributions are low enough, they're not taxable anyways. 
>>> I know this is the case in the US - income < $600 doesn't have to be
>>> reported (I collected about $50 last year in book royalties).
>> Note that "doesn't need to be reported" != "not taxable".
> 
> A minor distinction, since the low income isn't required to be reported 
> even - but even if it is reported, it in and of itself isn't taxed.

Depends on how much you make. If you get 3000 payments of $500 each, you 
certainly better be reporting them yourself.

And if you're actually a corporation, you certainly have to report all your 
payments even if they didn't get reported.

> I went through this whole thing when my first book was published, because 
> the advance was taxable but the taxes weren't taken off the top.  :-)

Yep. I've run a number of small companies, and the reporting and such is 
quite a mess.

> I would say that the "rainy day" fund makes the most sense to me.

Based on what I know of US laws, putting together a trust is probably the 
easiest and cheapest way to go about it. Of course, much of the POV team 
seems to be in european countries, so I have no idea. IANAL, IANAA, etc.

-- 
   Darren New, San Diego CA, USA (PST)
   There's no CD like OCD, there's no CD I knoooow!

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