Compliance

Last updated: June 26, 2026

Our Commitment

Joswells operates within established legal and regulatory frameworks governing LLC formation, business banking, and independent contractor relationships in the United States. This page outlines the compliance measures we maintain to protect both our Participants and the integrity of our operations.

Identity Verification

Every applicant undergoes a multi-step identity verification process before being accepted into the program:

• Government-issued photo ID — Verified against federal and state databases
• Social Security Number — Used for LLC registration and tax reporting; validated through authorized verification services
• Proof of address — A recent utility bill, bank statement, or government correspondence confirming U.S. residency
• Credit check — A minimum score of 650 is required; verified through authorized credit reporting agencies
• Background check — Conducted through a licensed third-party screening provider

Business Vetting

Joswells does not accept every ecommerce business that applies to use our framework. Each business undergoes its own vetting process:

• Verification of business registration in their home jurisdiction
• Review of product categories and business model for compliance with U.S. payment processor policies
• Assessment of chargeback history and financial standing
• Execution of an indemnification agreement and personal guarantee by the business owner

LLC Formation

All LLCs formed through the Joswells program are registered with the appropriate state agency (typically the Secretary of State or equivalent). Each entity is:

• Filed with accurate information reflecting the Participant as the authorized representative
• Maintained in good standing with required annual reports and state fees paid by Joswells
• Assigned a unique EIN (Employer Identification Number) obtained from the IRS

Banking Compliance

Business bank accounts are opened through licensed U.S. financial institutions that perform their own due diligence, including:

• Know Your Customer (KYC) verification of the authorized representative
• Anti-Money Laundering (AML) screening
• Beneficial ownership disclosure as required by the Corporate Transparency Act

Joswells cooperates fully with banking institutions' compliance requirements and does not attempt to circumvent any verification processes.

Tax Compliance

All Participant compensation is fully documented and reported to the IRS:

• W-9 — Collected from every Participant at onboarding
• 1099-NEC — Issued annually for all compensation paid during the tax year
• Record keeping — Payment records are maintained for a minimum of 7 years in accordance with IRS guidelines

Participant Protections

The following protections are built into every Participant's agreement:

• Indemnification — The ecommerce business bears financial responsibility for chargebacks, refunds, and penalties arising from their activity
• Defined scope — The Participant's responsibilities are explicitly limited and documented
• Document review — Nothing is filed or opened without the Participant's informed consent and signature
• Right to exit — Participants may withdraw at any time with a documented closure process
• Independent counsel — Participants are encouraged to consult their own attorney before signing any agreement

Regulatory Considerations

Joswells is not a bank, money services business, broker-dealer, or investment adviser. We do not hold, transmit, or manage funds on behalf of Participants or businesses. The business bank account is held at a licensed financial institution and is subject to that institution's regulatory oversight.

Joswells monitors changes in federal and state regulations that may affect LLC formation, independent contractor classification, or payment processing requirements, and updates its processes accordingly.

Reporting Concerns

If you have compliance concerns or wish to report suspected misconduct, contact us at info@joswells.com. All reports are reviewed and treated confidentially.