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How high should I set my KickStarter funding goal in order to have $35,000 left over?
I think you might be missing something important here. If you are running a business, then any expenses that your business incurs are deductible.  Yes, Kickstarter would report the full amount. The IRS requires them to report everything that you raised. However, the Kickstarter and Amazon fees would be a business expense. Your cost on the backer rewards are deductible business expenses as well. Legal fees, accounting fees: deductible.  Money that you spend on equipment may not be deductible all in one year; you may have to depreciate it over multiple years. This is where the accountant that you are paying accounting fees to will come in handy.  People who do an iOS app Kickstarter campaign for $5000 might have a few things going on that you don't: