Legal Question in Business Law in California

Percentage of Owed Monies

Hello:

If I am going to charge someone for information that I am going to provide them, to help Them get money owed THEM, can I charge them 20 percent (in California) of the monies that they get returned to Them? Or, Can I charge any amount I would like.

And, Of course the other question is.......... do I have to pay taxes on thier returned money I am getting 20 percent of?

Thanks,

--name removed-- Nicol


Asked on 1/15/02, 10:00 pm

2 Answers from Attorneys
Ken Koenen Koenen & Tokunaga, P.C.

Re: Percentage of Owed Monies

Regarding the taxes, the money you receive is taxable to you, and, pppossibly, deductible to the person who pays you.

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Answered on 1/16/02, 1:01 pm
Ken Koury Kenneth P. Koury, Esq.

Re: Percentage of Owed Monies

Your question is very general but the answer is yes, you can generally do that. You would only have to pay taxes on the 20% fees you collect.

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Answered on 1/16/02, 1:38 am


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