Legal Question in Business Law in Ohio

Purchasing Ad Space and Sending a % to the Publisher

I would like to purchase advertising space on a Web site owned by a european citizen. The approximate amount of money I would earn per month from this is $25,000. However, I would be agreeing to pay the owner of the Web site a percentage of the total profit, which would total about $18,000. So I would receive a check for $25,000, then send $18,000 to the gentleman in Europe. I would then write this $18,000 off and only pay taxes on my remaining $7,000. My questions:

1) Are there are legal limitations/hindrances/issues to this?

2) What is the best, ''most legal'' way to send the money so that I can prove it if audited? Bank wire? International check?

3) Are there any special precautions or things I should know, especially since it's an international business transaction?

Thank you.


Asked on 12/28/05, 9:05 am

1 Answer from Attorneys
Joseph Jacobs Jacobs & Lowder

Re: Purchasing Ad Space and Sending a % to the Publisher

Any time you are doing international trade, you have little if any assurance that you can collect from any person that defrauds you. You are taking a very big chance. The issue is what court will you go to to seek redress, and who will represent you?? If you have these answers, then simply use a bank which will require the person to enter into it and sign for the check in person.

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Answered on 12/28/05, 11:01 am


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