HACKER Q&A
📣 creativeconstr

Any risks in paying creators/sellers directly?


I was curious, are there any risks/liabilities in buyers paying directly to sellers, instead paying into companies account and then having payouts.

As an example, if Patreon allowed Creators to connect their Stripe accounts and allowing the money to go directly there.

Is there a risk, if it came to "returns"? Making the company liable and not necessary having the money to cover some costs?

Or is it just to control the money flows?

  👤 dazc Accepted Answer ✓
There may be tax liabilities in other locations. Say, for example, you pay someone who does not declare their income and, assuming you reside in the same country, you end up being liable for their tax. Extreme scenario but can happen.

Also, again in some countries, your tax authority may decide the person is actually your employee and not just a freelance contractor. Again, extreme, but a risk if you are paying the same person on a regular basis.

Paying via a third party platform usually absolves you of such hazards.

👤 brudgers
If it matters, talk to your lawyer, accountant, and insurance agent.