Thebeautyofthisarrangementis that the startup (the beneficiary) caninstantlyreachlarge Numbers ofhighlyqualifiedprospects with the tacit endorsement of the established business (the host).
If you are the owner of a qualified tuition program (QTP) (like a section 529 plan or a Coverdell ESA), you should receive a federal form 1099-Q, Payments from Qualified Education Programs, when funds are withdrawn in order to pay qualified education expenses of the beneficiary.