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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 110543
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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We are Hong Kong based technology and communication company.

Customer Question

Hello, we are Hong Kong based technology and communication company. We run our operation in online and from Hong Kong. We target USA-Brazil markets now. We have some legal questions about our services in USA;1) We have video/audio social network service. We use "Find Real Romance", "Start a Real Relationship" slogans for the men in our ads and homepage. However, the girls in our service earn money. They don't actually search real romantic relationships like in Tinder, Happn. What's the possible business legal risks? And, what do you suggest to write in terms of service agreement?2) We will pay the girls USD $0.15/minute from our Hong Kong PayPal account to the girls' USA (and also other countries) PayPal accounts. It comes to 9 dollars an hour and in some states that is below the minimum wage. We don't sign any job offer, insurance or ask work permit to the girls of course in any country. What's the possible business legal risks, do we violate anything as running online and remote work? If yes, how can we avoid from them?3) We will use a splash page (screenshot attached) to reach new girl models in the internet. It introduces the service and estimated revenues. Girls can sign up the service with their Facebook account and they can start to earn money by getting video call in our iOS/Android apps immediately. Does the splash page or service structure violate anything? What's the possible business legal risks? And, what do you suggest?4) Is sending to a personal PayPal account internationally and regularly require any tax requirement or any tax declaration form for USA citizens/residents? If we don't, what's the possible business legal risks? And, what do you suggest?Can you give the detailed information about our questions and concerns?Thank you.
Submitted: 4 months ago.
Category: Business Law
Customer: replied 4 months ago.
Screenshot attached.
Expert:  Law Educator, Esq. replied 4 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Are the girls free to pick and choose when to take calls and what calls to take?
Customer: replied 4 months ago.
Hello, yes the girls can choose the calls. If they don't want to talk, they can decline the call or block the user.
Expert:  Law Educator, Esq. replied 4 months ago.

Thank you for your reply.

In your service agreement you need to inform all parties that the service is for used for entertainment purposes only and that you do not represent that any actual relationships will be formed. You need to inform the customers that all parties are consenting adults and that the girls are not employees of the site and independent users of the site. You need to be careful here to not represent any actual relationship can be formed, because that could be deemed an unfair and deceptive business practice that could get you sued or shut down.

So what you are saying is the girls are not employees, they are independent contractors. This means that the minimum wage does not apply. You can pay them whatever they agree to accept as there is no minimum wage for independent contractors.

3) The splash page is fine and is perfectly legal. There is nothing wrong with the page.

4) As the girls are independent contractors and the customers are really paying them for their time (with your company taking a cut to process payments) there are no tax implications for you. The tax implications are for the girls receiving the money. You can deposit money from an international paypal account and that is not an issue. The girls who receive payment would be responsible for claiming money received on their taxes.

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