Crowdfunders Know How To Start Up Without Capital

Well, duh.

Crowdfunders know that the best way to start a business without capital is to have your customers pay in advance. Even the IRS has noted that “rewards” promised on Kickstarter are actually sales upon which income taxes will be due.

The Wall Street Journal’s article on funding your start-up without capital discusses the:

  • pay-in-advance,
  • subscription,
  • matchmaking,
  • deadline selling, and
  • go from service-to-product models.

http://www.wsj.com/articles/how-to-start-a-business-with-very-little-money-1422244844

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in Charity, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, FINRA, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, Venture Capital and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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