Expert: Dan Pepper - 10/9/2008

Question
I am considering starting an adult online pay-site based in Texas. I had a few questions:
What laws must I abide to prevent getting fined?

Will I need to consider myself a modeling agency since it will only be photos and must the people be considered models?

Will I need a tax id?

Do I need to withhold taxes from pay? If so, how?

Can I legally photograph nude photos in Texas and have them published online?

Can I have models sign a contract releasing all photos to me?

Does the model have to receive royalties from photos or is it legal to only pay for them to take the photos?

Answer
I will do my best to give you my thoughts to these questions, but ultimately, I would need to discuss these issues with you in more detail independently.

What laws must I abide to prevent getting fined?

Several, depending upon the nature of your business and how you solicit your talent.  Pandering, prostitution, obscenity, federal recordkeeping, workman's compensation are all areas you would need to address.

Will I need a tax ID?

Depending upon the type of business entity you form, you might.  I would STRONGLY advise you form one, which can protect your personal assets from liability.

Do I need to withhold taxes from pay? If so, how?

Only if you hire your talent as employees, versus independent contractors.  This is a lengthy and complex discussion, which I cannot answer here.  If you do hire them as employees, which is unusual in this business, having a payroll service assist you is advisable.

Can I legally photograph nude photos in Texas and have them published online?

In general, you have First Amendment protection to do this, however depending upon the nature of the photographs, you may need to concern yourself with obscenity laws.  A more thorough discussion about the type of your content would be needed.

Can I have models sign a contract releasing all photos to me?

Yes, provided that the contract is drafted correctly and the services they are performing for you are not otherwise illegal or obscene.

Does the model have to receive royalties from photos or is it legal to only pay for them to take the photos?

This decision is up to you.

I would highly recommend you speak with a qualified lawyer before you dive into this business.  If you'd like to chat with me, feel free to contact me through my website at www.adultwebsitelawyer.com