Come next year I am assuming that the $829,829 gained from the Indiegogo campaign will need to be reported to the IRS and is not all pure profit. Even though a character costs $150,000 to make, did Indiegogo and state/federal taxes combined really only take a “$10,500: IndieGoGo and Payment Processing Fees” bite out of it per $150k ? Or is Lab Zero going to go bankrupt next year from spending all of their money on characters/stages/etc… and not having enough left over to pay the piper ?
Or perhaps this income is not at all like that paycheck option when you choose to be paid the full amount every two weeks, but you still have to keep in mind that you owe X amount back to the Government at the end of the year that would have otherwise been taken out automatically if you had chosen the other option. Maybe businesses like Lab Zero are only taxed on “profits” above and beyond the amounts put back into the company to make it grow, I don’t know. If anyone could help me understand the situation better I would greatly appreciate it.