Scott Beale / Laughing Squid
Kickstarter announced Sunday that it has converted itself to a Public Benefit Corporation, which means that as a for-profit company established under Delaware law, it will adhere to certain socially conscious principles.
The Brooklyn-based crowdfunding company specifically said that it will not use “loopholes or other esoteric but legal tax management strategies to reduce its tax burden,” adding that the change means it will be “transparent in reporting the percentage of taxes it pays and explaining the many factors that affect its tax calculation.”
Such language is likely a direct response to its Brooklyn neighbor company, Etsy, which earlier this year reorganized itself to include a new Irish subsidiary. The new unlimited liability corporation, Etsy Ireland, was seen as a way to legally reduce the amount of taxes Etsy pays. Such a move is often used by many major tech companies that do not claim to have the same levels of ethically minded motivations, including Apple and Google.
Read 8 remaining paragraphs | Comments