Everyone -- this email recently came in. See my reply:<br><br><div class="gmail_quote"><blockquote class="gmail_quote" style="margin: 0pt 0pt 0pt 0.8ex; border-left: 1px solid rgb(204, 204, 204); padding-left: 1ex;">So the team has agreed and signed a ledger stating that in the event of winning, ... the prize money will be put into a team account to be used solely for the production of [the product]. <br>
</blockquote></div><br>no matter what you do to avoid coming up with a distribution ratio, the subject will raise its ugly head. And the longer you put it off, the worse the battle becomes. Many startups fail when the founders put off this unsettling challenge.<br>
<br>Also keep in mind that if the winning team wish to incorporate, the Startup Lab will do this for you, saving you thousands in legal fees. We will also open a bank account, and deposit the money in it. This will save you (and/or your parents) several thousand in income tax that you'll have to pay if you decide to take cash. (The tax consequences of "winnings" means that you have to pay the tax, or your parents do, depending on whether you file independently, or your parents still count you as a deduction.)<br>
<br>the income tax on a $10K award can range from $1500 to $3600, depending on the tax-payer's tax bracket. (It could be zero if you are very, very clever... in which case, you probably are too smart to be in this competition in the first place.)<br>
<br>Whether you use it or not, you are all required to use the pie-calculator and agree as a team on whatever you all decide together.<br><br>I know it's hard. But it can also be fun if you do it while making stupid faces at each other.<br clear="all">
<br>-- <br><div style="text-align: right;"><div style="text-align: left;"><span style="font-family: trebuchet ms,sans-serif;">Dan Heller</span><br><span style="font-family: trebuchet ms,sans-serif; color: rgb(0, 0, 153);">Executive Director</span><br>
<span style="font-family: trebuchet ms,sans-serif; color: rgb(204, 153, 51);">UCSC Center for Entrepreneurship</span><br></div><span style="font-family: trebuchet ms,sans-serif;"></span></div><img src="http://www.danheller.com/tmp/C4E-logo-small.jpg"><br>