Crowdfunding can be a relatively simple, quick way to raise capital to fund a new venture but what many startup entrepreneurs don’t know could hurt them.
Many crowdfunding campaigns entail perks for those who invest money into projects. It could be copies of an album you wish to record, tickets to the film you’re planning to shoot or samples of a product your burgeoning company intends to produce. The problem is that when you take money in exchange for an item, you could be subject to sales tax.
This is not necessarily a revelation.
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