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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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