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How much can you pay yourself after receiving money from a Kickstarter fund? I am thinking you need to pay yourself for the labor, but I am not sure if there's a way to determine the appropriate money you can spend. Also, since some of the money is going to be used to pay taxes, do you have to deduct the sum you have to pay in taxes when calculating the % of the money you can use for your own labor?

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Summarized from Kickstarter's Q & A:

You are executing a project where you are paid by people to deliver a defined outcome at a defined deadline. And the terms of Kickstarter make it clear that it is your legal obligation to deliver as promised (see Your responsibility).

In order to deliver you need to pay for your bill of material, your processing cost, your working time (this is your salary), shipping, a Kickstart fee, maybe office space and so on. Considering all this cost, you define the minimum amount of money you need and set this as your target (see in more detail What should I consider when setting my funding goal?).

The salary is dependent on you how much money you want to pay yourself (so you more or less define it). I guess one would pay oneself a typical salary as also paid in a comparable industry.

In case you collect a lot more than you expected, you might reinvest, improve your product or you can also make a profit (see in more detail What happens when a project is overfunded?).

This means you could pay yourself an accordingly higher salary.

After you paid yourself a salary, you have to pay tax on the salary. The details are dependent on the country where you live, but this is generally how it works.

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  • It's a bit weird to me that you can pay yourself almost any salary as long as the work gets done.
    – Sayaman
    Jan 7 at 0:30
  • The upper limit is of course the amount of people willing to pay for your project, if they know the amount of money you ask for and the promised results. So you need to plan with a reasonable salary and might get a reward depending on the quality of your project. Maybe a little bit like a CEO with a base salary and a big bonus in case of good results.
    – UweD
    Jan 7 at 8:20

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