Contract with OnlyFans: what do you need to know BEFORE?

OnlyFans is one of the most popular platforms for content monetization.

However, before you start working, it is important to understand the terms of the agreement concluded with the platform. Legal nuances, tax obligations, payment rules and restrictions can have a significant impact on the activities of the content creator.

OnlyFans operates on a subscription basis: users pay for access to creators' content, and can also send tips or buy personalized content. For content creators, this is an opportunity to earn a stable income, but also certain obligations to the platform, tax authorities, and even subscribers.

By signing an agreement with OnlyFans, you become an independent content creator, meaning you work as a self-employed person or entrepreneur. The platform does not act as your employer, but only provides a tool for monetizing content. This means that you are solely responsible for tax issues, legal protection, and compliance with the terms of use of the service.

Terms of payments and commissions

OnlyFans takes 20 percent of all content creator earnings and transfers 80 percent to a bank account or through payment systems. Payments can be made weekly or daily, depending on the settings.

However, it is important to remember that there are a lot of tax obligations that can be spent on the final sum of money to be paid. For example, US residents are required to submit Form W-9, and non-residents are required to submit Form W-8BEN. For those with low income, a tax can be automatically applied.

Ownership of content

While content uploaded to the platform remains the property of the creator, by signing an agreement with OnlyFans, you grant the service a non-exclusive license to use, display, and store the materials. This means that even after deleting your account, the platform may keep your materials in its archives.

It's also worth keeping in mind that distributing your content outside the platform without permission is against OnlyFans policy, but actually enforcing this rule is often difficult.

Platform restrictions and rules

Before you get started, you'll need to read the content policy. OnlyFans strictly regulates what content can be posted, prohibiting illegal content, fraudulent activity, and infringement of third-party rights.

Violation of the terms may result in temporary blocking or complete deletion of the account. In some cases, even the funds on the balance may be frozen.

It should also be remembered that in order to work on the platform, you must pass verification by providing documents confirming your identity and be of legal age in accordance with the laws of your country of residence.

Tax aspects for citizens of Ukraine

Income earned through OnlyFans is considered foreign income and is subject to taxation under Ukrainian law. It may be subject to personal income tax of 18% and military tax of 5%.

An alternative may be to register as an individual entrepreneur, which allows for a simplified taxation system. For example, in the third group of the single tax, the rate is 5 percent of income. This may be a profitable option for content creators with a permanent and significant income.

It is important to remember that for Ukrainian citizens, income from abroad must be declared by May 1 of the year following receipt of the income. In case of non-payment of taxes, fines and penalties may be imposed.

Legal risks and methods to avoid them

Working on OnlyFans may involve certain risks, including unauthorized use of content by third parties or claims from tax authorities.

To minimize risks, you should:

1. Regularly check for updates to the platform's policies.
2. Properly file tax returns and declare income.
3. Use watermarks or other methods to protect content from theft.
4. Strictly adhere to the OnlyFans terms of use to avoid account blocking.

If you have any questions regarding the legal or tax aspects of your activities on the platform, you should contact a specialist to get advice and prevent possible problems.

An OnlyFans contract is an agreement between a content creator and the platform, which includes certain rights, obligations, and risks. It is important to understand the platform's rules, payment terms, tax obligations, and possible restrictions to avoid unpleasant surprises in the future.

Before starting work, it is recommended that you carefully read the terms of the agreement and consult with a lawyer or tax consultant of the "Prikhodko & Partners" Law Firm to ensure the legality and safety of your activities.