Topic: SkepsiDyne Integrated Node - The Bitcoin Mining Company - page 33. (Read 104236 times)

yes i too agree btcguild and bitcoins.lc, the second is my personal choice for my own miners.
I would not like to see the miners at deepbit or slush or any other kind of obligatory fee pool

Probably going to be using BTCguild and Bitcoins.lc.  I'll start a vote as soon as GLBSE is back up.

what pools are we using? you should make a vote. Personally id like to use btcguild and deepbit as a backup

We'll be switching pools and running two miners per GPU in the near future!

Update: GLBSE.com is still down.  BTC is still rolling in.  Keep checking, dividends will be paid as soon as it comes back up.

Hey - I assume the couple of hours we've been going down dnd up were because of BTCmine? Don't you have a backup pool? Kind of sad seeing 10 ghash idle :p

Update: GLBSE is still down, but BTCmine.com finally started payouts again, so that's good.  Will be checking regularly for ability to payout dividends, and we'll get them out as soon as possible.  I will make another post once that happens, hopefully today!

I'm hoping to be back online in a few hours, after having to move to a new server (not one accessible by MagicalTux), I'm spending my time hardening the system.

Nefario.

You know nothing about the law. That's a ridiculous statement.

I am unsure at this point, I will decide that once GLBSE comes back online.  It will depend on what the exchange rate is at that time.

As far as moving shares, I will just keep half of the dividends to be paid (as I do now) instead of paying them out to myself and then having to withdraw them from GLBSE.

What % of generated BTC (since last dividend payout) will be sent out this round? If you keep on doing 100%, you will have paid for your shares in no time

Also, given the way GLBSE dividend payments currently work, it sounds like you will have to make a personal account/portfolio (if you don't already have one) to move your shares to once they get paid for.

Update: dividend payout will be delayed until GLBSE.com is back up.  Once it is back up we'll get dividends out.  Things are still running smoothly, we're about to start implementing a better cooling solution to enable for better overclocking, so updates on that will be appearing in the next few weeks.  We won't be ordering any new rigs until dividends are paid out and investment money still in the GLBSE account is withdrawn and sold.

You know you've got too many laws when you need a lawyer to figure them out for you.

sounds like the parasites showed up for their cut finally ... oh, well it was fun to be productive while it lasted.

While the accountant may be an accountant; he is definitely not a securities lawyer.

Here is a very, very brief summary of the laws in this area if you're in the US:

You made a public offer to sell shares in a corporation and took something very like legal tender in exchange.

You or the company you represent are officially a publicly traded corporation.

In the US, to get an exemption from this, you would typically do one of two things:

A) Issue a convertible note (e.g. debt, that can be converted to stock at a certain rate). This is fairly inexpensive to lawyer up properly.

B) Apply for an exemption under Reg. D; Reg. D makes a number of stipulations about how you conduct the business of fundraising and buying / selling shares, if you fit them all, you can be exempted.

You certainly would not qualify under Reg. D, since, for instance, there is  public market for your shares. Additionally, you haven't verified that all your investors are sophisticated investors per the SEC's perspective.

Functionally, in this case, (I'm not a lawyer), I believe you would likely need to pay everyone back whatever they'd lost investing if things went south; if you didn't, you would be looking at the wrong end of US securities law.

My own research here indicates that the best thing to do is probably incorporate somewhere that has flexible laws regarding public stock offerings; that company could then form a US subsidiary and do business in the states as a sub of a foreign (public) corporation.

Note that all this is going to take $10k at least. Again, I'm not a lawyer.

If you think you're unlikely to come under SEC investigation, (and really, generally, you should do this as a US citizen), do make sure you report and pay your income / taxes. The IRS has promised, vigorously, over the years that they DO NOT CARE where the money came from so long as you report and pay taxes on it. Read about Al Capone if you're curious what the US takes most seriously as far as crimes.

Update: still running at full capacity.  We'll be getting the second round of dividends out sometime tomorrow, as well as ordering the next round of rigs.  Having issues connecting to GLBSE right now so I can't give an update on the current motion, but from the last time I checked there seems to be strongly favoring passing.  We also have gotten some more investment as well!

Update: Things are running smoothly, we're fast approaching another dividend payout!  We've raised almost 70 BTC from investments since the last dividend payout, which is very exciting!  I am confident we will be able to afford at least one more rig for next week with the addition of my dividends being reinvested.  We're getting closer to the double digit Ghash/sec mark.

I have initiated a vote to pay sharp for making those wonderful graphs for us.  Using the time invested from the page (http://www.shrp.me/sin) and a rate of $13 USD/hour (which has been approved of by sharp), the total amount would be $19.07 USD worth of Bitcoins (determined by the rate on MtGox at the time of the end of the motion.)  Motion text is found here, it seemed to bug out again (not my fault this time, it's perfect json!):


I appreciate the insight about the legal issues surrounding the company, and I will be further investigating them with legal experts in the coming days.  Once again, it isn't something that needs to be done right this very second, but it is something that needs to be thought about.

Thanks again to everyone who has invested and reinvested!

Great news. I pledge to reinvest my next round of dividends.

On a happier note, we now have 9 rigs up and running!  Soon we'll be ordering another round of rigs, once the next round of dividends get paid out!

I'm a tax professional so I can offer some advice.  Like people said 8 grand is nothing, so there is an almost 0 percent chance of you actually getting audited, depending on what else you do.  But, you can file your taxes in the proper way pretty easily without owing anything except on what you kept for yourself.  It just takes a little record keeping and turbo tax.

First, ignore the whole share issuance.  You are not a legal corporation in the eyes of the law.  You would need to file articles of incorporation with the Secretary of State for that to be the case.  So for legal and tax purposes just call it a sole proprietorship and file schedule C with your taxes.  Just say that all the money from the bitcoins people invested was sales. 

For expenses, try to keep records of every expense made for mining and keep them separate from your personal expenses.  You can deduct things like electricity and internet, although if they are not 100% for the mining you will need to come up with a allocation between personal use and business use.  If you own your house you can take all kinds of other deductions too.  The biggest expense will be the equipment, but you can write off up to $500,000 worth of equipment for tax purposes, so you can effectively treat it like any other expense.

In the end you should be able to show total sales (bitcoin investments sold for $) - total expenses = your cut.  Your cut is what you owe tax on.