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Those are nothing compared to SEC laws and IRS requirements. Run afoul of them, and prison is in the cards. And PayPal didn't break any banking laws, only ran
by billirvine 14y ago
Those are nothing compared to SEC laws and IRS requirements. Run afoul of them, and prison is in the cards.
And PayPal didn't break any banking laws, only ran into parochial issues in some states.
And Uber is having trouble too, aren't they?
- Evbn 14y agoAirBnB does pretty well on an IRS-flouting (and similar state-level authorities) business model.
- billirvine 14y agoAirBnB doesn't have any IRS issues (at least not that I've heard of). Their problems stem from being an enabler within an industry that typically requires licensing... and doing so to rent properties for fewer than 30 days without permit (required in some areas). Yeah, the law seems preventative, but it's in place as a zoning issue to prevent a bed and breakfast from popping up in your mom's cul-de-sac. AirBnB is a good idea, running up against zoning laws that are also (generally) good ideas.
- rdl 14y agoThe biggest risk here is that the transaction will be voided out (at the option of the buyer) -- if your company fails, you may have to pay the money back to the investor. If the company is successful, the investor won't exercise that option. Honestly, for $100-200k, I'd do it -- paying $200k back to investors in the (1%?) chance that this funding mechanism is invalidated AND your company fails is a risk I'd be willing to take. I am not a lawyer and this is not legal advice, of course.