Taxes On A "Studio" Account?

[kimchi8888]

Hello,
I've tried to search briefly and didn't quite find exactly what I was looking for. And it appears that the other part of the forum is locked behind model status (which I'm not--but I guess I can be?).

Anyhow, I have a friend in Asia who's interested in camming but she does not want to be an independent model but asked to sign under my "Studio Account" [on CB] (that is--I would have to make one). She has a few friends who wanted to fall under the Studio Account as well. They were previously with another "Studio" but claimed that the 'owner' was cutting too much out of their pay.

Having been only just a paid user on CB and MFC---what can I expect paying out to the other girls? I wanted to give them the full 50% or whatever it was that CB/MFC takes.

Do I get taxed per payout from tokens to cheque?
The initial paper trail will go to me---but then it will ultimately go to the girls (who will file their annual tax reports). I will receive 0 income so I assume I shouldn't have to file a tax report as a Canadian citizen.

Sorry if it's a bit complicated I'm not exactly sure how to fully explain my situation.

--
My friends in Asia want me to make a studio account. They will 'work for me'. I pay them their cut of their tokens. I do absolutely no camming and take no tokens for myself. Is it safe to assume that CB/MFC will not tax me on the payouts even if I'm handling 1-5 other accounts' tokens? Is it safe to assume I don't have to take a cut of the girls tokens due to taxes on my end despite not taking in any of their income?

Thanks in advance!

 

[AmberCutie]

And it appears that the other part of the forum is locked behind model status (which I'm not--but I guess I can be?).

Due to your comments below, no. It's for cam models.

Having been only just a paid user on CB and MFC-

I do absolutely no camming and take no tokens for myself.

 

[AmberCutie]

As for the other part of your question... I think MFC no longer accepts new studio accounts, so you wouldn't be able to do so there. I would imagine that you'd be taxed on your studio account payout like anyone. The way studios pay out their models is not 100% clear to me.

 

[SMuser69]

Hello,
I've tried to search briefly and didn't quite find exactly what I was looking for. And it appears that the other part of the forum is locked behind model status (which I'm not--but I guess I can be?).

Anyhow, I have a friend in Asia who's interested in camming but she does not want to be an independent model but asked to sign under my "Studio Account" [on CB] (that is--I would have to make one). She has a few friends who wanted to fall under the Studio Account as well. They were previously with another "Studio" but claimed that the 'owner' was cutting too much out of their pay.

Having been only just a paid user on CB and MFC---what can I expect paying out to the other girls? I wanted to give them the full 50% or whatever it was that CB/MFC takes.

Do I get taxed per payout from tokens to cheque?
The initial paper trail will go to me---but then it will ultimately go to the girls (who will file their annual tax reports). I will receive 0 income so I assume I shouldn't have to file a tax report as a Canadian citizen.

Sorry if it's a bit complicated I'm not exactly sure how to fully explain my situation.

--
My friends in Asia want me to make a studio account. They will 'work for me'. I pay them their cut of their tokens. I do absolutely no camming and take no tokens for myself. Is it safe to assume that CB/MFC will not tax me on the payouts even if I'm handling 1-5 other accounts' tokens? Is it safe to assume I don't have to take a cut of the girls tokens due to taxes on my end despite not taking in any of their income?

Thanks in advance!

Short answer since this is a business you will profit from regardless of HOW you make the money you will probably have taxes. Canada isn't different enough from the US that you somehow won't owe taxes. The camsites report all money they give out as income so there will ALWAYS be a record of profits the government will have.

That said even if you accomplish this and make a studio account if your 'friends' still live in an east Asian country where pornography is illegal you'll eventually get in trouble.

Pornography in some of these countries can be simply a "recorded public display of nudity"

 

[SuzySirenXO]

Sounds fishy all around to me.

 

[kimchi8888]

Due to your comments below, no. It's for cam models.

By that I meant I could become a model myself. But yeah, I figured it was only for models.

As for the other part of your question... I think MFC no longer accepts new studio accounts, so you wouldn't be able to do so there. I would imagine that you'd be taxed on your studio account payout like anyone. The way studios pay out their models is not 100% clear to me.

Well, generally speaking, for payouts do you get taxed right away?
That is to say, you convert 2000 tokens to $100. Do you get the full $100 from CB/MFC or will you be taxed 13% or whatever it is and thus it'll be $87?

Most of the searches I found on the forum ask about how to file their annual tax reports and that isn't exactly what I was looking for.

Honestly speaking, it seems like studio accounts were made for this sort of thing---otherwise why wouldn't someone just make their own account?

I generally respect what the models do and go through---which is why I don't want to take a commission of any sort from any of the girls that want me to run a studio. I'm trying to research as much as I can because I don't want to tell anyone that they'll get 50% of their tokens when in the end it'll really be 30-40% or something due to me having to pay extra taxes for something I didn't personally earn.

 

[kimchi8888]

Short answer since this is a business you will profit from regardless of HOW you make the money you will probably have taxes. Canada isn't different enough from the US that you somehow won't owe taxes. The camsites report all money they give out as income so there will ALWAYS be a record of profits the government will have.

That said even if you accomplish this and make a studio account if your 'friends' still live in an east Asian country where pornography is illegal you'll eventually get in trouble.

Pornography in some of these countries can be simply a "recorded public display of nudity"

So even if I don't keep the income for myself I'll still be billed as if I did? That's the thing I'm unsure about. I'm technically NOT profiting as I don't want to keep the tokens that I didn't earn.
In the end, I don't mind if I'll be billed for the income so long as it doesn't put me into a high tax bracket that I'd be screwed over in the end.
It's just something I need to know beforehand so that I can give the girls their full "wages" (so to speak). I intend to give them what they make and if I get taxed for it then I have to tax them to recoup that loss.

They could always go non-nude (technically speaking) so in a sense it's not illegal for them (in certain countries) (but we all know it'll happen anyway).

Sounds fishy all around to me.

The only fishy part about it is that in some parts of Asia camming/porn is illegal which is why camming under a studio is often preferred for the folks in The East.

I don't intend to keep any income to myself (I don't need it and I don't deserve it). The girls are doing it out of their own accord as well.

If I have to pay the taxes on my end then I will--but that'll just mean I can't give the girls their full cut as their tokens will have to pay for the taxes that I will be paying for.

 

[AmberCutie]

By that I meant I could become a model myself. But yeah, I figured it was only for models.


Well, generally speaking, for payouts do you get taxed right away?
That is to say, you convert 2000 tokens to $100. Do you get the full $100 from CB/MFC or will you be taxed 13% or whatever it is and thus it'll be $87?

Most of the searches I found on the forum ask about how to file their annual tax reports and that isn't exactly what I was looking for.

Honestly speaking, it seems like studio accounts were made for this sort of thing---otherwise why wouldn't someone just make their own account?

I generally respect what the models do and go through---which is why I don't want to take a commission of any sort from any of the girls that want me to run a studio. I'm trying to research as much as I can because I don't want to tell anyone that they'll get 50% of their tokens when in the end it'll really be 30-40% or something due to me having to pay extra taxes for something I didn't personally earn.

Well I imagine you'd have to make a business, in which you'd take IN then process OUT the payments, and that business is susceptible to taxes like any business.

 

[paige_orion]

So even if I don't keep the income for myself I'll still be billed as if I did? That's the thing I'm unsure about. I'm technically NOT profiting as I don't want to keep the tokens that I didn't earn.
In the end, I don't mind if I'll be billed for the income so long as it doesn't put me into a high tax bracket that I'd be screwed over in the end.
It's just something I need to know beforehand so that I can give the girls their full "wages" (so to speak). I intend to give them what they make and if I get taxed for it then I have to tax them to recoup that loss.

Yes, you are profiting. Technically, these girls would be your free-lance employees, and thus every token they make, is a profit to your studio and your name. All profits are taxed. What you choose to do with the profits AFTERWARDS (i.e., pay the girls), happens after the taxes are paid. It doesn't matter whether you keep the profits or give them all away - they would still be considered the profits of your business, and thus the government will want their share. So yes, it very well could put you into a higher tax bracket, depending the success of these models. It will be a gamble.

This entire scheme does sound rather fishy, and I do wonder if you will be attracting government attention for not keeping profits. If you are paying models who are working illegally in another country, would the government think of it as an international money laundering scheme? Why can't these models work independently if they do not like their studio? You won't be providing a physical location for them to cam from, so I really wonder why they need a studio to receive their money from. What do they get out of it, especially if their money gets cut? I dunno. It just doesn't make sense. Why does the money have to go through you first?

I dunno. Something about this doesn't seem on the up and up. But that's just my opinion.

 

[kimchi8888]

Well I imagine you'd have to make a business, in which you'd take IN then process OUT the payments, and that business is susceptible to taxes like any business.

That makes logical sense to me thanks.

Yes, you are profiting. Technically, these girls would be your free-lance employees, and thus every token they make, is a profit to your studio and your name. All profits are taxed. What you choose to do with the profits AFTERWARDS (i.e., pay the girls), happens after the taxes are paid. It doesn't matter whether you keep the profits or give them all away - they would still be considered the profits of your business, and thus the government will want their share. So yes, it very well could put you into a higher tax bracket, depending the success of these models. It will be a gamble.

This entire scheme does sound rather fishy, and I do wonder if you will be attracting government attention for not keeping profits. If you are paying models who are working illegally in another country, would the government think of it as an international money laundering scheme? Why can't these models work independently if they do not like their studio? You won't be providing a physical location for them to cam from, so I really wonder why they need a studio to receive their money from. What do they get out of it, especially if their money gets cut? I dunno. It just doesn't make sense. Why does the money have to go through you first?

I dunno. Something about this doesn't seem on the up and up. But that's just my opinion.

Yes that would make sense.

As for your latter half, for the ones who are camming where pornography is illegal they cannot have the income come directly from CB as it can potentially be traced. Technically they shouldn't be at all and it's quite risky.

One of them has told me that they were previously on MFC but MFC won't take them back unless they go on their original account which is tied to the previous studio (or whoever owns her account now). They won't verify a new account for her.

Well, in the end it seems much more trouble then it's worth. Legality of camming aside the models would technically be taxed twice it seems and I don't want to be put into a higher tax bracket just because I tried to help.

Thanks everyone for the information and great replies.