Neil Singh Details His Kickstarter Lawsuit
C Frank0 stashed this in Kickstarter
Stashed in: Kickstarter
I would say the worst thing that he actually did, the most disturbing thing that he actually did, was he took that $35,000… he just deposited it into his personal bank account, and the thing that bothered me the most but not enough to pursue him beyond what I did, is that there’s no accounting for what he did with that money. My speculation is that if you put it into your personal banking account you’re intermingling it with your personal expenses and you start using that money for personal expenses, and that can get you in a heap load of legal trouble. That was probably the biggest mistake that he made right there, but again, if he had just gone back and talked to somebody with business savvy they would have told him you need to set up a corporation, the corporation needs to have a bank account, you should probably have an accounting person and all that stuff.
"...and all that stuff."
The thing is, I'm pretty sure this weird intermingling happens regularly on Kickstarter.
At $35K, I'd assume it basically happens every time.
A separate bank account would be a good idea, but at that level you are not going to form a corporation and hire an accountant and still have funds left to manufacture Wookie scented ferret toe warmers or whatever it is you promised.
I'd be surprised if any small kickstarter project delivered on time, paid tax, made a profit or honored warranties.
None of the small Kickstarter projects I've put money into (out of 5) have delivered.
So I think you're right.
Hang in there. I've looked at a lot of Kickstarter projects and they do ultimately deliver. In fact, this project, Hanfree, is the only design project I know of that has specifically said they will not deliver.
Thanks Mark! I will hang in there...
It' amazing that project creators aren't setting up LLC's to protect their interests. It's cheap and easy. At least in my state, CT, you can to directly to the secretary of state web site and do it on line.
It's that easy in most states.
I guess many project creators just don't know it.