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Crowdfunding Your Business Venture? Prepare for Taxes

When Julie Uhrman, chief executive of gaming start-up Ouya Inc, went looking for funding to launch a new video gaming console, she turned to crowdfunding site Kickstarter Inc.

The goal: $950,000. Instead, when the campaign ended August 8, so many gamers and game developers had pledged $99 (or more) to get the new Android-based Ouya that the company raised $8.6 million, making it one of the biggest crowdfunding success stories ever.

"We've been in the public consciousness for only 30 days, and we sold over 60,000 boxes," Uhrman says. "There's a good audience (on Kickstarter) for the product we're trying to build, and it allowed us to move very quickly."

But one important thing has been overlooked: taxes.

Source: Reuters. Read full article. (link)

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