Legal considerations for OnlyFans agencies

Running an OnlyFans agency can be lucrative and rewarding, but it does come with its own set of challenges.

Whether you’re considering starting your own agency or already have an established business, it’s important to be mindful of the legal challenges that your agency might face. 

We’ll cover all the legal considerations of running an OnlyFans agency from content guidelines to contracts and taxation issues.

By the end of this article, you’ll have a better understanding of how to protect yourself, your business, and your Creators from potential legal issues. 

Let’s dive in.

Content guidelines and restrictions

While OnlyFans allows NSFW content on their platform, there are still lots of guidelines and restrictions that Creators have to follow.

If they fail to comply with these rules, their accounts can be suspended and they could even be banned from the platform. 

One of your responsibilities as an OnlyFans agency is to ensure that the content your Creators produce complies with the OF terms of service. 

Compliance with Terms of Service

OnlyFans' Terms of Service (ToS) detail the rules that Creators and users have to follow on the platform. Here are some key points to consider:

• Content ownership: Creators can only post content that they have the right to use, and it can’t feature unverified users unless they use a specific release form. 

• Intellectual property: Creators have to respect copyright laws and can’t use any trademarked material (including music) without express permission. 

• Platform rules: Creators have to adhere to OnlyFans' specific rules about content types, payment structures, and user interactions.

As an OnlyFans agency, it’s your responsibility to regularly review the OF Terms of Service to see if they’ve been updated.

It’s a good idea to make sure someone on your agency’s team is responsible for this and can communicate any changes to your Creators. 

Age verification

OnlyFans is extremely strict about making sure that all Creators on the platform are legal adults.

The legal age for producing adult content varies from location to location, so it’s best to follow the strictest rules.

Generally speaking, Creators must be at least 18 years old at the time they produced the content. 

Producing and distributing sexual content featuring minors has serious legal consequences.

As an agency, here’s what you need to know:

• Strict age verification: While OnlyFans does their own age verification during their Creator signup process, you should also make sure all the Creators you work with are of legal age before you sign a contract with them. 

• Documentation: Maintain clear records of age verification for each individual involved in content creation.

• Regular audits: Conduct periodic checks to ensure all active accounts and content still meet age requirements.

Prohibited content

OnlyFans has strict rules about the types of content they allow on the platform.

Agencies should be on top of these content restrictions to make sure none of their Creators inadvertently create or publish prohibited content. 

Here are some of the types of banned content to be aware of:

• Illegal activity: Content posted on OnlyFans can’t include any depiction of illegal activities. 

• Non-consensual content: All content published on OnlyFans must be consensual. This means that revenge porn and hidden camera footage are strictly forbidden. Even consensual content that is shot to look like non-consensual content can’t be posted on OnlyFans. 

• Violence: Content featuring violence and blood of any kind is forbidden. 

• Minors: Any content involving or depicting minors in a sexual context is absolutely prohibited and illegal. OnlyFans also does not allow content where an adult is pretending to be a minor. 

• Bestiality: Content involving animals in a sexual context is forbidden. OnlyFans content also can’t feature sexual contact in front of animals. 

• Public nudity: OnlyFans will remove any content featuring public nudity of any kind. 

This isn’t a complete list, and these restrictions are always evolving. As an agency, you should make your Creators aware of these content restrictions.

You should also have a review process in place to catch any potential violations before the content is published.

OnlyFans takes their content guidelines seriously, so it’s best to err on the side of caution.

Taxation and reporting

While it may not be glamorous, one of the key aspects of running an OnlyFans agency is dealing with taxes.

If you mishandle your taxes (or those of your Creators) you could be in for some serious legal issues. 

Here are some key points:

Income reporting

Accurate income reporting is non-negotiable. Though regulations vary by jurisdiction, there are some key considerations for agencies based in the U.S. 

• 1099 forms: You’ll need to give 1099 forms to Creators who earn over $600 in a year (from OnlyFans or any other financial activities).

• Record keeping: You have to keep meticulous records for all your agency’s earnings as well as the earnings of each individual Creator you represent.

• International clients: Things get even more complicated if you work with Creators from different parts of the world. Even if you’re based in the U.S., you may still need to be mindful of tax treaties and other special reporting requirements.

It’s worthwhile to hire a tax professional who has experience with digital content creators or the adult entertainment industry to make sure you’re properly complying with all tax laws. 

Deductions

You can save money on your taxes by properly tracking and claiming your agency’s business expenses.

Here are some of the most common tax deductions for OnlyFans agencies:

• Marketing costs: Expenses for promoting creators or the agency itself.

• Equipment: Costs for cameras, lighting, or other content creation tools provided to creators.

• Software subscriptions: Fees for management tools, editing software, etc.

• Office space: If you have a physical office, rent and utilities may be deductible.

• Travel expenses: You can deduct business travel if you’re traveling to attend industry events or meet with Creators.

You should also be able to advise your Creators on how to document their own expenses for tax purposes. 

Sales tax

Sales tax regulations vary worldwide, but depending on your location, you may have to collect sales taxes for your services and submit these taxes to the government.

This area is complex, especially if you’re operating internationally. 

While a tax professional can tell you everything you need to know about collecting sales tax as an OnlyFans agency, here are some of the basics: 

• Tax nexus: Understanding where you have a tax nexus is important because it determines whether you have to collect sales tax. You might have a tax nexus in a state if your agency is physically located there or if you make enough sales in that state each year to qualify for collecting a sales tax. 

• Service classification: Another factor that impacts your sales tax obligations is your service classification. This is essentially what type of business you’re considered to have for tax purposes. 

• Digital goods: Many of the services that OnlyFans agencies offer are digital, so be mindful of tax regulations concerning the sale of digital content and services.

Contracts and agreements

When you run an OnlyFans agency, contracts act as a legally binding agreement between your agency and the Creators you represent. 

They protect both parties and set clear expectations for your working relationship as well as reducing the risk of legal disputes. 

Here are some of the types of contracts you should have in place as an OnlyFans agency:

Service contracts

When you bring on a new Creator to work with your agency, one of the first steps is having both parties sign a service contract. 

Here are the basics of what these contracts should cover:

• Services provided: The contract should clearly define what services your agency is going to offer. This can include things like content strategy, marketing, fan engagement, and social media management. 

• Payment terms: The contract should include your agency’s fee structure as well as any particular financial arrangements you’ve made with the Creator. It should also specify how and when Creators will be paid.

• Contract duration: How long will the contract be in place? Outline the length of the agreement and any conditions you have for renewing it or terminating the relationship. 

• Dispute resolution: The contract should include a process for resolving any disagreements that occur between your agency and the Creators you represent.

It’s best to have a legal professional go over your service contract to make sure it’s legally sound and protects both you and your Creators. 

Confidentiality agreements

While the adult entertainment industry may involve baring it all, privacy is still a key consideration.

Confidentiality agreements (also known as Non-Disclosure Agreements or NDAs) protect sensitive information that’s shared between the agency and Creators. 

Many Creators operate under stage names of pseudonyms to keep their real identity hidden, but they’ll need to share their real identity with you in order to sign a contract.

Maintaining your Creators’ privacy is a non-negotiable.   

You’ll also need to provide confidentiality agreements to any agency employees, including assistant, account managers, and anyone involved in content creation.

Here’s what your confidentiality agreement should include:

• Scope of confidentiality: Define what information is considered confidential.

• Duration: Specify how long the confidentiality obligations last.

• Permitted uses: Outline how confidential information can be used.

• Consequences of breach: State the consequences of breaking the agreement.

Content rights agreements

You have to have a contract in place to clarify who owns and has the right to distribute the content that’s created by Creators working under your agency.

OnlyFans has their own rules in place about content rights and ownership, which state that the Creator owns the rights to their own content.

Your content rights agreement should comply with these rules. Here are some of the things it should cover:

• Ownership: Specify who owns the content created. When it comes to OnlyFans, the content is owned by the Creator.  

• Usage rights: Discuss how the agency is allowed to use the content. Are you able to use it to market your own services? 

• Post-termination rights: Clarify what happens to content rights if the agency-creator relationship ends.

Legal requirements for OnlyFans agencies

When you’re running an OnlyFans agency, you need to be on top of the platform’s content guidelines, establish legally binding contracts, and manage your tax obligations in order to stay on the right side of the law. 

The legal considerations we outlined here are just the beginning.

As the head of an OnlyFans agency, it’s prudent to hire a legal team to ensure that you comply with all of your legal obligations. 

By staying within the law, you not only protect yourself and your Creators but also help make the digital adult entertainment industry more safe, legitimate, and professional.