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Revenue-Sharing Business Model Accounting & Taxes - Looking for advice

Hey IndieHackers,

Building out Rocket Role here, where creators use our no-code tool to craft bite-sized AI-powered training courses and deliver them to users.

Our initial plan is to adopt a revenue-sharing model where we bill users on behalf of the creators. While the majority of the revenue goes to the creators, we retain a certain percentage for the platform's operations.

We're a Delaware C-Corp based in the US, but we'll be collaborating with creators and users globally.

Given our business model, I have a few questions regarding the accounting and taxation aspects:

  1. With a revenue-sharing setup, are there specific tax considerations I should be aware of? I'm particularly concerned about sales taxes, VAT, and other international tax implications.
  2. Are there any potential pitfalls on the accounting or tax side that might be slipping under my radar?
  3. If anyone has experience with a similar platform structure, I'd greatly appreciate insights, especially concerning accounting and tax management.

Every bit of wisdom, your past missteps, or gold nuggets of advice would mean a lot. Cheers in advance!

on August 16, 2023