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Thread: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!!

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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    Quote Originally Posted by EricaErotica View Post
    I would NEVER incorporate a business in the state of California. Too expensive for a variety of reasons. You would need to consult with an attorney or any one of the incorporation businesses (LegalZoom, MyCorporation, etc.) about incorporating in ANOTHER state. This might save you on fees and business income taxes. Also if you incorporate out of state you would NEED to obtain a Registered Agent.
    see this is where I get really confused.

    since the AB-5 law affects California, and incorporating a business would protect me from being affected, I figured that would mean I would need to do all my legal paperwork and incorporate my business in California?

    is that not the case?

    in what instance would anyone *need* to incorporate their business in California? I don't understand how all of this works.

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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    Delaware is a VERY popular state to incorporate your business. All the major banks are incorporated in Delaware. Helps them save ALOT of money in business income taxes. LOL

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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    You can incorporate your business in ANY state. You just need to make sure that in the state and/or county you are operating your business you have a valid AND current business license.

    Quote Originally Posted by anonamiss View Post
    see this is where I get really confused.

    since the AB-5 law affects California, and incorporating a business would protect me from being affected, I figured that would mean I would need to do all my legal paperwork and incorporate my business in California?

    is that not the case?

    in what instance would anyone *need* to incorporate their business in California? I don't understand how all of this works.

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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    I just won't work on any site that is out of California. That state always t tried to have the last word with anything $ related. Thankfully I'm not a resident there anymore.
    "Alot of people are afraid to say what they want, that's why they don't get what they want"~ Madonna




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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    hmm. I just did some quick googling which seems to contradict some of the advice here. I appreciate all the input, but there's a lot to take in and I guess I'm just going to have to do more research on this.

    "Generally speaking, if your business is going to be located in California, it should be incorporated in California. There are reasons for this. While states like Nevada, Wyoming, and Delaware may offer tax and privacy advantages, if you are doing business in California you will have to register your business entity in California—regardless of which state you incorporate in. Thus, if you are located in California or doing business in California, you will have to pay all the filing fees and taxes associated with California—as well as the filing fees, registration fees, and any other applicable fees that are required by the state in which your business was incorporated."

    https://beverlyhillslawcorp.com/shou...another-state/

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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    Do any of you know which sites are all based out of CA so I can not work them anymore? I know nf, phrendly, cams are but what others?
    "Alot of people are afraid to say what they want, that's why they don't get what they want"~ Madonna




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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    Seems like California is trying to make it more difficult for businesses to incorporate OUT OF STATE. By basically hitting you with DOUBLE fees. Not cool.

    Here is what I found myself... "In addition to the Delaware franchise taxes (minimum $275 or $400 per year), Delaware corporations conducting intrastate business in California must file a statement of qualification in California and pay the minimum franchise tax of $800. The Delaware corporation must pay to file in Delaware and must pay to run the corporation in California, which amounts to extra money in filing fees and extra administrative duties. The Delaware corporation must also maintain a registered agent in Delaware, which usually costs around $100 a year."

    Looks like you California ladies might be best off incorporating in California.

    California changed the game so that incorporating OUT of state really only benefits you if you have a publicly traded company. SUCKS!!!

    I incorporated both my businesses out side of the state I currently live in. My current state of residence does not have such restrictions. That's why I advised ladies to consult with people (an attorney or an incorporation business) on your particular situation. DO NOT try to do this yourself.


    Quote Originally Posted by anonamiss View Post
    hmm. I just did some quick googling which seems to contradict some of the advice here. I appreciate all the input, but there's a lot to take in and I guess I'm just going to have to do more research on this.

    "Generally speaking, if your business is going to be located in California, it should be incorporated in California. There are reasons for this. While states like Nevada, Wyoming, and Delaware may offer tax and privacy advantages, if you are doing business in California you will have to register your business entity in California—regardless of which state you incorporate in. Thus, if you are located in California or doing business in California, you will have to pay all the filing fees and taxes associated with California—as well as the filing fees, registration fees, and any other applicable fees that are required by the state in which your business was incorporated."

    https://beverlyhillslawcorp.com/shou...another-state/
    Last edited by EricaErotica; 10-09-2019 at 02:20 PM.

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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    Quote Originally Posted by xxxGothBarbie View Post
    Do any of you know which sites are all based out of CA so I can not work them anymore? I know nf, phrendly, cams are but what others?
    Niteflirt

    Phone Stars

    US Love

    Chaturbate

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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    Unfortunately, becoming a business entity in California is going to be kind of costly for many of you ladies in California.

    Your incorporation costs and fees are more expensive.

    Also your business income tax rate is going to be higher than the national average

    Read this article https://www.investopedia.com/article...ess-basics.asp
    Last edited by EricaErotica; 10-09-2019 at 02:56 PM.

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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    The more I look into this new law, it seems like it is just a way for the state of California to collect more fees and taxes.

    They will hit employers with payroll taxes if you are re-classified as an employee.

    If you choose to not be considered an employee, you will be hit will steep fees and high business income taxes when you incorporate as your own business.

    So many businesses are abandoning California and setting up there headquarters in other states.

    Seems like California should prepare for a mass exodus.

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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    Quote Originally Posted by xxxGothBarbie View Post
    Do any of you know which sites are all based out of CA so I can not work them anymore? I know nf, phrendly, cams are but what others?
    I think it's a mistake to just cut out Niteflirt - that's a lot of income to lose, plus Niteflirt does have a good team of lawyers. They are not going to let this affect their business I don't think.

    I would not be surprised if they base Niteflirt elsewhere should it begin to cut into their bottom line.


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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    I agree. A lot of California-based adult companies might relocate to Nevada or Florida. Both sates have been very friendly to the adult industry in the past.

    Quote Originally Posted by laurielegs View Post
    I think it's a mistake to just cut out Niteflirt - that's a lot of income to lose, plus Niteflirt does have a good team of lawyers. They are not going to let this affect their business I don't think.

    I would not be surprised if they base Niteflirt elsewhere should it begin to cut into their bottom line.

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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!


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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    Thank you so much for these articles.

    It still stands though that the way you become exempt from being someone's employee is that you incorporate your own business and provide services to the company under your incorporated business entity.

    The only thing is that this might be a financial hardship for MANY independent contractors in California to form their own legal business entities.


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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    also Flirt4Free

    Quote Originally Posted by xxxGothBarbie View Post
    Do any of you know which sites are all based out of CA so I can not work them anymore? I know nf, phrendly, cams are but what others?
    Quote Originally Posted by EricaErotica View Post
    Niteflirt
    Phone Stars
    US Love
    Chaturbate

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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    Quote Originally Posted by laurielegs View Post
    I think it's a mistake to just cut out Niteflirt - that's a lot of income to lose, plus Niteflirt does have a good team of lawyers. They are not going to let this affect their business I don't think.

    I would not be surprised if they base Niteflirt elsewhere should it begin to cut into their bottom line.
    I def dont want to but unless they fight a his nonsense & NO comply then I'll have to bc I refuse to be an employee anywhere.
    "Alot of people are afraid to say what they want, that's why they don't get what they want"~ Madonna




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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    Quote Originally Posted by xxxGothBarbie View Post
    I def dont want to but unless they fight a his nonsense & NO comply then I'll have to bc I refuse to be an employee anywhere.
    I won't either. I believe they will find a way around this, even if they have to move the business out of the USA.


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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    So does that mean that all ca based companies are gonna send us paperwork to make us employees even if we aren't ca residents?
    "Alot of people are afraid to say what they want, that's why they don't get what they want"~ Madonna




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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    Quote Originally Posted by xxxGothBarbie View Post
    So does that mean that all ca based companies are gonna send us paperwork to make us employees even if we aren't ca residents?
    From what I understand even if they did somehow apply this to cam models (and from what I see overall I doubt they can) it would only apply if the person working for the site is living in California.

    I used to work for a medical transcription company as a supervisor. We had nationwide employees who worked from a home office and transmitted their typing remotely. The way overtime worked is that all my employees outside California got overtime over 40 hours.

    For those employees who lived in California our company had to abide by Cali wage and hour laws and they got overtime any time they worked over 8 hours in a single day. They theoretically could work 10 hours a week and make 2 hours of overtime pay.

    So the law only applied for those with their home residence inside Cali.


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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    Quote Originally Posted by xxxGothBarbie View Post
    So does that mean that all ca based companies are gonna send us paperwork to make us employees even if we aren't ca residents?
    According to one article, yes.

    "If the company is based out of California: (such as Flirt4Free, Chaturbate and Studio20’s LA location, to name a few), the company can no longer accept performers on their platforms as independent contractors and must hire all performers. This takes effect on January 1st, 2020.

    Needless to say this is not feasible at all. Not with the business model of the companies, nor within said deadlines. It would be more feasible to relocate outside of California, so that way only the following applies:

    For companies located outside of California: It’s not quite as scary, but still bad. You’ll only have to hire every performer from the State of California, as there’s still the employment laws in effect in their home state. Either that or remove every California performer from your platform."

    https://webcamstartup.com/california-ab5/

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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    I'm surprised neither of those two cam-related articles, particularly the one written by the adult industry lawyer, suggested that California models look into incorporating as a business as a way of getting around the law. It seems like a relatively simple (albeit expensive) solution, unless we're missing something here.

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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    I really hope these sites can fight back & all of us keep our jobs & the freedom that comes with it .
    "Alot of people are afraid to say what they want, that's why they don't get what they want"~ Madonna




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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    Quote Originally Posted by xxxGothBarbie View Post
    I really hope these sites can fight back & all of us keep our jobs & the freedom that comes with it .
    They were quick to do what was necessary to cover their asses when FOSTA/SESTA became the new law. So I have hope and confidence they'll figure this out too.

    Although if I recall correctly, some UK based camsites fired their US workers because of FOSTA/SESTA... So I hope that's not what it comes to with AB5 and California performers.

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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    This is the part of the law that would protect people who form their own business entities...

    The holding does not apply to a bona fide business-to-business contracting relationship, as defined below, under the following conditions:

    1) If a business entity formed as a sole proprietorship, partnership, limited liability company, limited liability partnership, or corporation (“business service provider”) contracts to provide services to another such business (“contracting business”), the determination of employee or independent contractor status of the business services provider shall be governed by Borello, if the contracting business demonstrates that all of the following criteria are satisfied:
    (A) The business service provider is free from the control and direction of the contracting business entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.
    (B) The business service provider is providing services directly to the contracting business rather than to customers of the contracting business.
    (C) The contract with the business service provider is in writing.
    (D) If the work is performed in a jurisdiction that requires the business service provider to have a business license or business tax registration, the business service provider has the required business license or business tax registration.
    (E) The business service provider maintains a business location that is separate from the business or work location of the contracting business.
    (F) The business service provider is customarily engaged in an independently established business of the same nature as that involved in the work performed.
    (G) The business service provider actually contracts with other businesses to provide the same or similar services and maintains a clientele without restrictions from the hiring entity.
    (H) The business service provider advertises and holds itself out to the public as available to provide the same or similar services.
    (I) The business service provider provides its own tools, vehicles, and equipment to perform the services.
    (J) The business service provider can negotiate its own rates.
    (K) Consistent with the nature of the work, the business service provider can set its own hours and location of work.
    (L) The business service provider is not performing the type of work for which a license from the Contractor’s State License Board is required, pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code.

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    Default Re: California Assembly 5 NEW LAW Independent Contractors will no longer be allowed!!

    This is the actual text of California Assembly Bill 5

    https://leginfo.legislature.ca.gov/f...d=201920200AB5

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