Re: Starting a PBM...legal?

From: ratt@Castle_chaos.com (Donald Redick)

Date: Tue, 18 Jan 1994 16:57:24 +0000

In article <1994Jan18.002917.19986@oz.plymouth.edu> Styx
<b_gerber@oz.plymouth.edu> writes:
>>
>>What will the company do and how will it make money?  If it's just through
>>entry fees for the games then sales tax may become an issue.
>	I had planned to charge for entry fees which would get the
>player a rules book, a subscription to the newsletter, and of
>course...there entry in a game.  Then I was going to charge a fee with
>every turn.
>	If that works out moderately well, I am thinking of branching
>out...into what I have not quite decided, but I'm looking at a few options!
>	Ben

It is non-trival to start a PBM legally,

1) you need to file your papers for organizing your company

that is the easy part..

My company retains an account, a bookkeeper, and a laywer.
You might have to do the same..

You are definitely going to pay taxes... IF you sell your
rulebooks then you should collect sales tax.. According to how your
state works, if you work as a service (Like Fractal Dimensions) your
turn fee are exempt from sales tax for now in New York

Don't expect to make much money.. You won't.. FD takes a loss every
year... and you will work your tail off for the service you will provide.

Before you decide to market your PBM game.. Better look at the cost
of advertising and going to conventions for pubilicity and such..

And once you walk the legal line.. expect to get audited in 3-5 years
for not making a profit..

And if you do well, expect to get copied real fast...  Check your
competition cuz you will have many...  And you will spend a lot of time
moderating that your didn't think you would.

And if you don't have an original concept, you are going down the tubes
anyway.. for lack of playership..

Oh well.. You better think about it...
Don't you read the Magazines in the PBM field? Shadis, Paper Mayhem, Flagship..

Do a little market research first and if you still want to do it, well

Like we all say in PBM,

Good Luck, you will need it...

-- DJAR

***********************************
Donald J. A. Redick
Fractal Dimensions
17-29 Main St., Suite 316
Cortland, New York 13045
Voice: (607) 753-9246
FD Castle Chaos BBS: (607) 753-6579
Internet: dar6@cornell.edu
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