business-registration, web-development, non-profitI’m starting a crowdfunding platform and having some trouble figuring out what type of business to make it. The purpose is to raise money for charity.
The transactions will flow as follows…
For every donation made:
-4% service fee goes to my website. This 4% is taken from every donation made through the website as a fee to keep the site running.
-After this 4%, the remaining 96% of the proceeds will be split in half and allocated to 2 additional parties
-So the user makes a donation, and PayPal splits it 3 ways and sends it to 3 different parties: website - 4%, fundraiser (to cover fundraising costs) - 48%, charity - 48%)
I have a few business forms in mind, but having trouble choosing the right one for this…
Be wary that 4% is not enough if you factor in the payment processor fees.
As to the business form, there’s no right or wrong answer as long as your own assets are protected by limited liability. If you believe non-profit would be ideal (and I agree, since non-profits like to do business with each other), then go with that.
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