Money Making

[Kris94]

Okay this is more directed to Jointed Rail, RRMODS, and World of Trainz due to all of my money going to these payware companies. How do you manage the money that is received via donations, purchases and commissions? Other than having to pay monthly bills for the server space that's occupied, are there any taxes that have to be reported to the IRS and what not or does the IRS and other tax collectors just tend to let you guys be. They troll around looking for people to rob I just thought maybe you've been contacted by them.

Now also how does the members of the team get paid when purchases are made? Like when NS37, 22alpha, Yutzk, and Cyr all have made payware engines as far as I know.

The reason I ask is because I'm giving some consideration on doing such a thing once I have the appropriate funds necessary to do such a thing. I won't do a site because I suck at doing those type of things. More like something wgkandsk does. But the issue is me trying to set up an account to receive the money.

Any help or clarification will be greatly appreciated.

 

[pfx]

Notwithstanding the fact that this is yet another brainfart of a thread, I doubt that JR, RRMods or WoT will provide you with any financial information (I could be wrong though). Firstly, this is a forum run by N3V so it's not the place to be asking such questions about other companies. Secondly, I doubt very much that any of these payware providers are obliged or will be compelled to provide you with financial information regarding their business model.

I'd suggest contacting the sites directly which is a far more appropriate route to take, while honing your route-building and content creation skills.

 

[airtime]

I can give you a little bit of help kris94 to surviving the dredded tax man, however, things may be different to were you are in the USA. I do agree with what pfx has stated, that you may not get a reply from the owners of the websites, about their financial circumstances.

In my past I have been self employed, so I have had to deal with the tax man, or in my case a tax woman, and they are not all bad, they are there to take your money off you - yes, however, they are also there to help you, as most are professional accountants, and some have been there, where you are before, just starting up.

The websites you have mentioned would be regarded as a business, and they would have to register with the tax department, as it is a form of income, however, the tax department might deem the business as a hobby or charity, as it only makes enough to survive, and does not make enough to make a profit, this is classed as a non profit organisation, and can be tax exempt, this applies to the UK, please check this out for yourself were you are.

Now with regards to the tax man, things will be taken into consideration, the cost of the host server, the cost of the host website, the cost of the host copyright conditions, the cost of the host electricity, the cost of the computer, the cost of servicing the computer or server, even a new suit to look good while you promote the website, all this and more comes into account when you get a visit from the tax man, as long as you keep all your receipts, bills and documentation of what you bought and where, you might be entitled to a rebate (rebate means, money back to you), as you may have paid too much tax, by paying all the other outstanding debts to launch your business. This is were the advantage of being self employed is best, as all bills have an added tax to them, (including clothing, food, petrol/gas, car tax, car insurance, the car itself, car maintanence and utilities/gas, water, electricity and so on) which you pay, this can be deducted from the final outcome of your tax bill, and excess money will be returned back to you through a rebate.

This is how I survived in the past as being self employed, my advice is talk to someone who is self employed, they can give you all the good and bad points of being in control of your own money, I would do this otherwise, however, I think this post is long enough. Also if you can, talk to someone from the inland revenue/tax office about your idea, they may be able to help you further.

Hope the above helps and good luck with you business venture.

Joe Airtime

 

[William0d0]

They take their millions and blow it all on trips to Vegas. And as we all know "what happens in Vegas, stays in Vegas".

 

[Euphod]

Of course, you could just write the IRS with all the information about these vendors and ask them how much tax they pay!

 

[glt0145]

I don't really any of these site have exactly made squilions form their payware. Not sure if you want to know how do you set up a site for payware or what they do with their money...maybe if you want to set up a paypal account then you can link that to payment. Any bank account can be linked to paypal... Remember companies like paypal take a commission that is how they make their money...

 

[whitepass]

In the US you have Fed and State Taxes so you have over 50 sets of rules but you only need to know 2. The Fed Tax is just you and the 1040. Most states are the same. When I was free-lacing I reported the Fed as I had a net loss and got a deduction and did not report the State as they only wanted income over $500. There have been several people here who have tried to go payware and find that the web site cost way more than the income.