Is it legal to do a fundraiser to help fund money for a small business like a show or something?

Say if I wanted to put on a talent show and have people made donations as well as the profit from going to see this show would be used to help fund a small business, like an entertainment company. Is it legal? It wouldn't decrease people's taxes or anything complicated by that. It would be just an individualism doing this. What are the laws regarding this? Do you need a license or pay taxes just for raising money to start a small business?
Just curious if there's a way of not getting taxed. Also is there a limit to how much money you can raise at a detailed amount of time or anything like that?

1 year ago - 2 answers

Best Answer

Chosen by Asker

It is probably legal, but the donations will not be tax deductible. And, yes, YOU will have to pay income taxes and payroll taxes on the profits.

Why are you thinking of this as a "fundraising event"? In reality, it is a revenue creating event - a business activity.

Best wishes and good luck.

1 year ago

Other Answers

Only if you let them know where the money is going. You can't lie and say it is for the homeless or anything like that.

by Fluttershy is best pony - 1 year ago