Legal Question in Business Law in California
My friend in other country wants to sell product online in U.S.. He wants me to create a separarted company to receive customer payment and be in charge of the operation money transaction for him (that means when customer buy products from his website, the customer pay to my company instead of his, then I transfer the money to my friend's country once a month). What type of company should I create is the best interest to me? Do I have legal liability if the customer sue for product issue and how do I avoid it?
1 Answer from Attorneys
This sounds like a scam. How well do you know this "friend?" There is no legitimate business reason to set up the transaction structure your "friend" proposes. The only advantage to your friend to this kind of structure would be to leave you as the sole target of lawsuits when the products are bad or not delivered at all, or to run a "Nigerian" con, where you would receive money via fraudulent checks or credit card payments that appear to be good, then you send the money to them out of your account, and and then you are left holding the bag when the checks bounce or the card payments are reversed.
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