Is it legal to have an online tarot business as long as I have a disclaimers on my youtube channel and website stating entertainment purposes?

I have been searching for weeks for information on having an online tarot business. I know there are different laws for different states in regards to tarot reading businesses but I can’t find that information. Should I have my youtube channel as just my name and for donations, that I claim as tips on 1040 form or should I set up a DBA using a fictional name and set it up as a sole proprietorship and get an EIN? I am currently just trying to build an audience at this point but I want to make sure I take the right steps to make it a legal business before asking for donations to my channel or charging for personal readings. I have seen where many readers have their channels stating a disclaimers for entertainment purposes and offer personal readings they charge for and ask for donations. Is that enough to make it legal?

Asked on March 7, 2019 under Business Law, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

1) Disclaimers: as long as they are prominent enough, yes, they will protect you. The issue is, you can't mislead or claim something you cannot claim or prove. (If people want to believe despite disclaimers, that is their choice.)
2) Business structure: go with an LLC: it will protect you from the vast majority (but not all; no protection is perfect) business related debts and liabilities.
3) The income will be simply the income of your LLC. Any expenses reasonably related to it (e.g. creating the website; webhosting; internet access) can be claimed as business expenses to reduce your taxable income.


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