I am a college professor. Usually we write grant proposals, and, if we win, the money goes to the university who is happy to administer the funds after taking their share for "overhead".
However, I recentlt won a bid for some consulting work. It's not a huge chunk of money (about $30k). Since it is not a grant, I have to be the administrator my self. Here's the catch, I don't want that $30k to be taxable income since I am just going to spend it all on student labor and equipment.
I understand that I should have thought about this before, but I was in a grant mindset. What should I do to stay out of tax trouble when this agency sends me a check for $30,000?
I have thought about registering a non-profit org or something.
Is the amount low enough that none of this even matters?
Any advice appreciated.
However, I recentlt won a bid for some consulting work. It's not a huge chunk of money (about $30k). Since it is not a grant, I have to be the administrator my self. Here's the catch, I don't want that $30k to be taxable income since I am just going to spend it all on student labor and equipment.
I understand that I should have thought about this before, but I was in a grant mindset. What should I do to stay out of tax trouble when this agency sends me a check for $30,000?
I have thought about registering a non-profit org or something.
Is the amount low enough that none of this even matters?
Any advice appreciated.