What are the legal concerns around opening a CashApp for another person's business?

Asked by ANef_is_Enuf (26839

) October 9th, 2020

I have a friend (who I have known for 20 years and trust) that is living in Canada and does OnlyFans type work, camming, social media, etc for tips. Apparently they aren’t able to use CashApp or Venmo where they are and asked if I could open one for them to use since I live in the US, but they obviously don’t want me on the hook for income taxes for their income. However, they would pay me a cut for the inconvenience, which I would report.

Is there an appropriate way to address that or is it just going to be impossible? Are there other legal concerns aside from taxes?

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4 Answers

I think there could be risks with you being stuck on the hook for charge-backs and fees in a worse-case scenario? It’s possible you’re personally liable in that situation because you’re receiving the money fraudulently? or under false pretense maybe? I honestly don’t know.

Perhaps the thing to do is open an LLC billing company and sign them as clients to more-formally codify the arrangement and protect you personally from suit from creditors? It’s probably worth talking to a real lawyer about to be honest.

I am not a lawyer.

gorillapaws (31065

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Can PayPal be used by them instead? I would be leery of the arrangement you propose but I am also not a lawyer.

janbb (63361

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A big concern is that you might be in violation of anti-money laundering laws. Accepting payments and forwarding funds to another country is a big red flag, and even though you might be able to explain it in the most innocent manner, it might be a violation.

While your friend’s business may be legal where you are and where she is, cross border business may run afoul of other laws.

zenvelo (39587

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@zenvelo that’s what I was afraid of.

Thanks guys.

ANef_is_Enuf (26839

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