How to Avoid Legal Issues Running Cam Site Business?

When starting a cam site business you should consider a scope of legal regulations that control the work of live cam sites. It is not a secret that the live cam is one of the best opportunities for profitable online business in XXI century. However, to get the most of it, make sure your business meets all the requirements.

It means that just like any other businessman or businesswoman, you should have a basic understanding of laws that are applicable to your career. Most importantly, your website should comply with the regulations connected with live cam industry. According to the federal and state laws in most jurisdictions, including the EU and the US, Webvideo platform meets all requirements of a live cam site. 

Here is an overview of basic legal issues to consider when starting a cam site business.

Legal Documents and Law Compliance

First step on the way to a legal cam site business is providing users on your website with proper legal documents and agreements. According to General Data Protection Regulation (GDPR), you need to ensure that you have a comprehensive Privacy Policy set up that covers key details about data collection and storage on your website. Secondly, the documents on your website should include Terms of Use and Refunds Policy. Moreover, your website should have a Release Form for performers. It allows record-keeping and use of the shows for commercial purposes. We provide our Webvideo cam chat script with generic texts and technical support for legal documents mentioned above to be placed on your website. 

Most importantly, your website should be in compliance with 18 U.S.C. 2257. It means that there should be the age verification form for modes. You must ensure that they are over the age of 18 and have voluntarily registered to broadcast their performances. Also, you need to keep the copy of content regarding the live-action of performers sufficient to identify them.

Company Registration and Tax Deduction

When starting your own cam business, pay attention to the way you are going to register your company. First of all, keep in mind that tax rates are different for individuals and business entities. Thus, it differs whether you are a C corp, a sub-S, an LLC or a sole proprietorship. Tax issues can dramatically affect how your business prospers, so selecting the proper entity is a crucial step. 

Secondly, think about the country for company registration. Laws and regulations in different countries may vary, so each country has its own tax rate. Moreover, do not forget to take into account double taxation agreements between countries. The easiest way to find out which countries are suitable for registering a particular business is to look at existing competitors. It means that you can find the sites of the same niche, analyze where they are registered and study the features of tax deductions in these countries. It is also important to consider your own residence, because it can affect the payment processing on your website and the process of company registration itself. 

Payment Processing Requirements 

Needless to say, your cam site business is impossible without payment processing on the website. There are several issues to consider when choosing a payment gateway. 

Firstly, you will have to make payouts to models, webmasters and partners of your cam business. The cost of outgoing payments should be low. Also, internal payment transfers will be significantly cheaper than external ones. That is why, it is important to take into account where the majority of your models and webmasters live. Of course, when choosing a bank for system payments, another thing to consider is the payment processing speed. You will need to accept payments and payout earnings without a big delay. You can also consider e-payments, which sometimes offer instant money transfers with a lower commission rate.

Moreover, the type of your business is also important when choosing a payment gateway for your website. There are different payment processing companies for different types of business entity. That is why you should learn about the payment gateway in order to meet the regulations. 

If your counrty has regulations which restrict the work of cam sites, you can consider registering a company in offshore zone. However, sometimes due to government regulation, banks  could refuse to work with offshore companies. They are afraid to lose their license because of frequent fraud operations in offshore companies. 

All in all, there are quite a lot of requirements connected with cam site business. However, we are always ready to help our clients find a solution or recommend an experienced law consultant. If you have other questions considering legal issues of cam site business, contact us at