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The Complete Guide To Running Your Sugar Baby & OnlyFans Business

In this memo, I’m going to use the word benefactor for either a Sugar Daddy who is transferring money to a Sugar Baby or for a subscriber sending money to an OnlyFans content creator.

This memo is a warning about financial scams and money laundering schemes, and also gives some advice on accounting and income taxes related to Sugar Baby or OnlyFans income. 

SCAM ALERTS:

  1. SCAM 1: You never want to be transferring money out of your account to another third party after you receive money from your benefactor.
    1. So for example: You are a Sugar Baby and you are supposed to get $1,000 per week from your Sugar Daddy. But your Sugar Daddy wants to send you $10,000 and then wants you to disperse or distribute $9,000 to a third party. Never do this! There is no reason why your Sugar Daddy cannot pay those bills directly out of their own account. This most likely is a money laundering scheme or some other attempt at hiding financial transactions. If you do these transfers for your benefactor, then you might be complicit in a crime.
    2. Set up a separate bank account for your Sugar Baby and OnlyFans transactions.
      1. Never give a benefactor information for the main bank account you use everyday. That means do not give out the bank account number and routing number to your main bank account. Always set up a separate bank account just for your Sugar Baby or your OnlyFans income. If someone has your bank routing and account information there are many ways they can use this to get access to the other money in that account. By having a separate account just for the income from your benefactor, you can then move that money to your personal account and never have to worry that anyone can get access to your main bank account.
  2. SCAM 2: Do not buy Gift Cards and then provide the numbers on those gift cards to anyone. Once scammers have the card number and other codes they can get cash. A legitimate business person will never ask you to go out and get gift cards. There is a similar IRS scam going on as well.

And remember, your Sugar Baby or OnlyFans income is taxable!

        1. Be sure to keep track of your income and your expenses like any other business owner would do, so you can give that information to your CPA at the end of the year to get your taxes done.
        2. Along with that, you need to pay estimated taxes when you are a business owner. You cannot wait to pay your taxes at the end of the year when you have your own business. You need to pay estimated taxes on a quarterly basis during the year. 
        3. So please seek out a reputable CPA to assist you with this process. If you don’t file your taxes correctly, then you can be charged with tax evasion.

Questions? Concerns? Call me on (732) 673-0510.

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Tax Laws are complex.

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Remember,

“If We Aren’t Working For You, Then You Aren’t Working At Your Best”

Chris Whalen, CPA
(732) 673-0510
81 Oak Hill Road
Red Bank, NJ 07701
www.chriswhalencpa.com

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