Radio silence has concluded. Apologies to all for the lack of posting, things got pretty hectic pretty quickly. We have lots of updates here at Natural History Press.
First, our Kickstarter campaign was a success! We were beyond thrilled to have made our goal. This enabled us to complete our incorporation and do some other fantastic things that we’ll get into a bit later.
Let’s talk about the biggest lesson we learned from Kickstarter.
The most important lesson is that you should incorporate before you start a Kickstarter campaign. We were forced into the annoying world of transferring money to multiple accounts.
Amazon payments requires a taxpayer ID number (aka TIN) to setup. For people that is the oh so ubiquitous social security number. For corporations, the TIN comes in the form of the Employer ID number (aka EIN). Obviously, you can only get the EIN after you incorporate. In addition, setting up a business checking account will also require this EIN. The nice part about the EIN is that it literally takes about two minutes to get online.
But we weren’t incorporated yet, so no EIN. Without incorporating first Kickstarter money will have to go to a personal account. This then runs the hazard of getting mixed in with personal funds. We left the money in the Amazon payment account until our free business checking account (through the incredibly awesome people at Eastern Bank) was setup. Another hazard here is that Amazon would love for the account holder to use those funds for Amazon purchases, again risking a mix of personal and business funds.
So, the result: Panic every time an Amazon purchase was made until the money was safely transferred. Of course, even that wasn’t easy. To avoid even more Amazon fees, the money had to be transferred to a linked personal bank account. Only then could the money finally be sent to the business account.
The moral: Setup everything before starting with Kickstarter and safe yourself grief, aggravation, and anxiety!