> and keep receiving "buy me a coffee" donations
Is that enough to support the site? How does that work with tax? Are those people considered paying users or is it like tips. Do you pay tax on tips?
Is that enough to support the site? How does that work with tax? Are those people considered paying users or is it like tips. Do you pay tax on tips?
I basically send an invoice for each tip I receive. Talked a lot to my accountant about this, and she said that if I don't invoice the people sending me these tips, I'm doing fraud, and can pay huge fines once I get caught. I think only as an NGO you're allowed to receive tips w/o paying taxes on the amount. I have an LLC, so I have to invoice every income.
If you're in the U.S. though...you need to find a new accountant. You don't need to invoice every transaction. It certainly is advisable, for accounting/auditing purposes (much easier to track and verify income), but it's not mandated.