“Someone wants to open a massage parlor under my name. If something goes wrong, will I be in trouble?”
Hello everyone, I am Teacher Xu from Yibei Education. Finding someone to open a shop is a very common phenomenon in the Chinese massage industry in the United States.
In today’s article, I will talk to you about: What consequences may occur if something goes wrong when you lend your identity to others to open a massage parlor, and suggestions on how to avoid various risks. It is a must-read for Chinese masseurs and store owners in the United States!
First of all, I want to emphasize that if you lend your name and identity to someone else to open a shop, regardless of whether you participate in the management or whether you actually make a profit, you are the “legal person” of the massage shop in the legal sense, that is, the legal person responsible.
If anything happens to the store, such as being prosecuted or fined, you will be responsible for it. You cannot tell the police or the judge that you did not open the store, did not make any profit, or were not involved in the operation. You must remember this!
So, if you really lend your identity to someone else to open a shop for various reasons, what might you encounter? Or, if you are the owner, what might you encounter when opening a massage shop in the United States, and how to avoid these risks?
We continue:
The first one is the more common situation: working without a license.
If a masseur working without a license is caught by the police, the consequences are very serious, because “working without a license” is a Class E felony in the United States. Masseurs working without a license will face up to 4 years in prison (the situation may vary slightly in each state), and shop owners who hire employees to perform unlicensed massages will face felony prosecution for “illegal operation . “
Regarding the definition and consequences of misdemeanors and felonies in the United States, you can check out our YouTube video: What are the consequences of being caught working without a permit in the United States and being convicted of a misdemeanor?
If you lend your identity to someone to open a shop, and then the masseuses in the shop are caught working without a license, you will face a felony charge of “illegal operation”, and you may face a huge fine or even jail time. Even if you plead guilty, pay the fine, and avoid jail time, you will still have a criminal record. If you have a criminal record and do not obtain citizenship (even a green card), you may be deported by the Immigration Bureau.
The second scenario: erotic massage.
Like unlicensed massage, erotic massage is also a federal felony in the United States (except in cities where sex trade is legal). If you lend your identity to someone else’s shop or you own a shop, and the police catch a masseuse doing erotic massage, not only will the masseuse be prosecuted for “erotic massage”, but the massage shop itself and the owner will also be prosecuted.
What’s more serious is that because “erotic massage” is a crime without victims, prosecutors have not prosecuted erotic massage cases in recent years. In order to gain merit, the American police tend to turn a pure “erotic massage” case into a “human smuggling” case. After catching these masseurs who do erotic massage, they will ask them to be tainted witnesses and accuse their bosses of “human smuggling” or “prostitution.” In this way, these masseurs who do erotic massage become victims of “human smuggling” and will not only not be prosecuted, but can also get green cards.
If the shop owner or person in charge is accused of “human smuggling” or “prostitution”, how serious will the consequences be? Take California as an example. If you have a masseuse doing erotic massage in your shop, the minimum sentence is 3 years in prison. Ten masseuses means 30 years, which is only the minimum term. So don’t think that it is the masseuse doing erotic massage privately and it has nothing to do with the shop owner.
The third situation: the business premises does not have a building use permit.
In order to open a massage parlor in the United States, in addition to applying for a “massage business license”, you also need to apply for a “premises use permit” for the location used to open the massage parlor.
If a massage parlor is found by the Housing Department to have violated its “housing use permit”, it may be fined up to $25,000. If you lend your identity to someone else to open a shop, you will have to pay this huge fine.
If you encounter any of the above three situations, whether you lend your identity to others or open your own store, you may face huge fines, be deported by the immigration department, or even be imprisoned! So don’t take risks and joke with your own life.
If you encounter a situation that is beyond your control, such as a masseur who lies about his or her identity or performs handjobs in private, how can the owner or person in charge avoid unnecessary risks to the greatest extent possible? The answer is to set up a legal person (i.e., establish a company).
The main advantage of establishing a company is to separate the company from the individual: when the company (massage parlor) encounters an accident, if you are the individual defendant, your personal property, including bank deposits, houses, cars and all real estate, may be involved in the company’s debts. However, if you are sued as a legal person, the lawsuit will not recover personal assets, and at most the company will go bankrupt.
Secondly, setting up a company can also help you save taxes legally. According to the number of employees and the amount of profits, choosing the right company type can help you save a lot of taxes legally.
So, what conditions must be met to set up a company? How to choose the type of company? What are the differences between LLC, S Corp and C Corp? If you don’t understand these knowledge, your property may be confiscated or you may even go to jail! Don’t worry, we have also sorted out the relevant information for you:
How to avoid legal risks to the greatest extent when opening a massage parlor or working as a masseur in the United States?
Disclaimer:
The content of this video does not constitute legal or tax advice. For actual operations, please consult a professional.
