If I’m working for an online employer and they want me to open up a merchant’s account in my name, won’t I be held liable for chargeback and other issues if they arrive?
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If I’m working for an online employer and they want me to open up a merchant’s account in my name, won’t I be held liable for chargeback and other issues if they arrive?
What is common practice?
Asked on July 28, 2015 under Business Law, Illinois
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
Yes, if you open up the account in your name, you will liable for any chargebacks or other debts.
Common practice, if the business is an LLC or corporation, is for it to be opened up in the business's name, possibly guaranteed by an owner or member of the company (not just an employee) if the company is seen as too new, too small, or too speculative and therefore a bad risk; or if the company is a sole proprietorship or partnership, one of the owners should open it in his/her name.
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