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MLM Legal

MLM companies and independent contractors (distributors) must understand the local, national and international laws that regulate the MLM and direct selling industry. In the United States, the direct selling industry is regulated by Federal Trade Commission rulings that influence commission plans or income claims. The sale of products is also regulated for all industries such as the three day return rate. In international legal cases, national and local laws vary.

  • April 10, 2015

    Corporate Feature: Self-Assessment of Consumer Use Tax

    Introduction For most companies, the imposition of sales tax is a normal part of business operations. However, consumer use tax is often overlooked, leading to costly transactional audit penalties and interest, or unnecessary overpayments. Consumer use tax associated with untaxed purchases often represents... Read more ›

  • April 9, 2015

    Three Biggest Myths Network Marketers Believe About Taxes

    If I Take the Home Office Deduction, Will it Increase My Risk of Getting Audited? It's surprising how many network marketers actually overpay their taxes. There are common misconceptions Network Marketers have in preparing their tax returns that can cost them hundreds--even thousands-of dollars in extra ta... Read more ›

  • April 7, 2015

    Taxes and the Independent Distributor

    If you are like me, I am starting to worry about my taxes for 2014. Tax time brings a sense of dread every year. One deduction that independent distributors miss is the business deduction in the gift category. You can give gifts up to $25 per person, per year. You can find out the rules on gifts by going to t... Read more ›

  • December 2, 2014

    Nine Essential Players Your Team Needs To Create a Thriving Business

    When we look towards creating a strong and thriving business, we sometimes forget we can't do it alone. Just as a baseball team has essential players each with their own role all working together to win the championship game, so too must you have all the necessary players in your business. No one person can c... Read more ›

  • October 17, 2014

    Get Your Hands Off My Downline!!!

    If God had been running an MLM rather than delivering the Jews from Egypt, the first of the Ten Commandments given to Moses would have been "thou shalt not steal thy neighbors downline." Following closely on the heels of this commandment would be "thou shalt not covet thy neighbor's downline," and "thou shalt... Read more ›

  • October 15, 2014

    Get Rich Quick!

    You can be successful with a heavy dose of blood, sweat, and tears. If that were my title, would you have read this far? Doubtful. So here’s the cold hard truth: there is no such thing as getting rich quick. If it were that easy, we’d all be rich! When I was a young newlywed, living off love and not mu... Read more ›

  • October 13, 2014

    History of the DSA Code of Ethics

    Our topic on MLM.com this week is ethics. Remembering how and why codes of ethics were written in the first place is important. In the interest of research, I reviewed Moral Suasion, by Wotruba (1995), an article on the development of the code of ethics for the direct selling industry. The Direct Selling Asso... Read more ›