Thread: Money management for an RSPS

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  1. #1 Money management for an RSPS 
    Registered Member Rachmaninov's Avatar
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    I'm curious, how do top private servers handle 'donations?' Many servers with 300+ concurrent players will generate over USD$5k per month in income. How do large servers handle their finances in a way not to generate suspicion from payment gateways and banks? PayPal may see the amounts of money coming in everyday as suspicious and they could limit the account of the RSPS owner.

    I think handling payments for a large RSPS would be different than handling payments for a regular business because the former is illegal (in western countries) whilst the latter is probably not. Perhaps a cryptocurrency or an offshore bank account could be used? I'm not sure, could you give me your thoughts?
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  2. #2  
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    I think as long as you pay taxes on it the IRS won't come after you.
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  4. #3  
    Registered Member Rachmaninov's Avatar
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    Quote Originally Posted by mexile View Post
    I think as long as you pay taxes on it the IRS won't come after you.
    do big servers pay their taxes? i thought many of them would engage in tax evasion.
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    Quote Originally Posted by Rachmaninov View Post
    Many servers with 300+ concurrent players will generate over USD$5k per month in income
    times that by like 10


    Quote Originally Posted by Rachmaninov View Post
    do big servers pay their taxes? i thought many of them would engage in tax evasion.
    tax evasion is bad!


    to answer ur question, it's pretty much done the same as 'normal' businesses. both business tax and personal income tax (one way or another)
    Last edited by Corey; 04-21-2020 at 02:06 PM.
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  6. #5  
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    Quote Originally Posted by Rachmaninov View Post
    do big servers pay their taxes? i thought many of them would engage in tax evasion.
    Set aside 30% of all income for taxes & pay quarterlies, send 1099's to devs, etc...
    It works just like a regular business would.

    IRS doesn't give a shit about copyright laws; they care about money. lol
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  8. #6  
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    Quote Originally Posted by Rachmaninov View Post
    do big servers pay their taxes? I thought many of them would engage in tax evasion.
    Not really. Almost every rsps works with a payment system such as Paypal, Visa, Mastercard, etc. So everything is traceable. If the owners of the rsps want to get their money the money enters their country's regulation system and they have to pay taxes either through personal tax or business tax as said above. Jagex also stopped caring about rsps's as it takes so much money off their hands by suing and lawyers for stealing their developments so nobody cares about that as long as it brings in money.
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    Wouldn't surprise me if Jagex cut licensing deals for a % of profit and an MNDA...
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  10. #8  
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    Well first of all, nothing in RSPS is a "donation", and nothing has been a "donation" since ~2008.

    RSPS owners are selling virtual goods, that's all they're doing. As such, they're perfectly able to claim their phony "donations" as personal/business income and report to the IRS or whoever your national revenue service is. The IRS, like someone else said, doesn't usually give a shit how you got the money, they just want their cut. The IRS rarely sees the difference between an RSPS owner making $5k a month selling fake paper hats, and someone else selling their own arts and crafts for $5k a month.
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    Your very good friend Songoty, with over a decade of RSPS experience, will manage all donations and income for you. Just forward all to my wallet address which I will PM you, and I promise I will take care of your taxes.

    Like others said treat it like you would treat a business. In fact it's probably better if you set up a limited liability company in the long run for this purpose, like Winten did for Dodian way back when. The tax man wants his cut regardless of what country you live in. They got big time gangsters back in the day in the states for tax evasion, eventually they'll get you too.
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    Quote Originally Posted by Songoty View Post
    In fact it's probably better if you set up a limited liability company in the long run for this purpose, like Winten did for Dodian way back when.
    yeah pretty much all the top servers have actual registered businesses setup for tax purposes.
    hit the nail on the head, not worth evading tax (illegally, anyway) cos it's gonna come back to bite u
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