If Iam going to open an escort service, what are some basic legal issuesthat Ican expect running this business legally?

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If Iam going to open an escort service, what are some basic legal issuesthat Ican expect running this business legally?

Away from city limits.

Asked on October 19, 2010 under Employment Labor Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

That is a very dangerous business to open. Note that even if you do not run it as a prostitution ring (and many escort services actually are), if any of the escorts take it  open themselves to offer sexual services in exchange for  money or other compensation, you could find yourself liable as their employer--even if  you end up being vindicated, you could have damage to your reputation, spend money and time defending yourself, etc.

As a practical matter, before doing something like this, if you have not already, try to  meet and speak with owners of other such services (presumably in different locations, so you're not competitors) and find out from them what the issues are--there's no substitute for  experience.

As a general matter, any high-liability-risk business should be set up as an LLC or corporation, so your personal assets better insulated from liability; you should maintain more-than-adequate insurance; you should written codes or expectations or rules of conduct which you have employees countersign and which you enforce, so as to make it plain you do not tolerate, let alone encourage or participate in, illegal behavior; and you should have an attorney *thoroughly* research ALL relevant laws (including any applicable zoning laws) and also look into whether cases have been brought against similar services in your area and on what grounds, so you can learn how best to avoid criminal or civil liability.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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