FAQs
We've got you covered.
This page covers the most common things people ask about working with Earnwell, how payment processing works, getting started, getting paid, and what to expect as you move through the process.If your question isn’t listed here, feel free to reach out. We’re happy to help.
Why do I need to provide all this information?
Each document we request is standard for setting up a compliant business structure—nothing more, nothing less. If you were to create an LLC and apply for payment processing independently, you’d be required to submit the same information. Earnwell simply facilitates the process to ensure everything is structured correctly from the start.
Who owns the LLC?
You do—100%. You have full control, rights, and ownership over your LLC. However, when you’re referred to a merchant partner, your role transitions.
By signing a contract with your merchant services partner, you operate as a managed contractor under their merchant services agreement while maintaining ownership of your business.
This contract covers:
1. The merchant services provider, who represents the international e-commerce business.
2. How payments are processed from the products sold through the assigned advertising partner.
What do I do with my LLC after the program ends?
That’s entirely up to you! You now have experience in payment processing and e-commerce infrastructure, which opens doors to new business opportunities.
You can:
• Continue operating in the payment processing space
• Pivot your LLC into a new business venture
• Dissolve your LLC if you no longer need it
What products are being sold?
Have you ever seen trending products on TikTok? It’s likely one of those! Earnwell sets up businesses for moderate-volume commerce, with products that typically cost under $100.
You and your merchant partner will discuss specifics, but popular categories include:
• Kitchen gadgets
• Fitness gear & equipment
• CBD gummies & wellness products
Do I pay taxes on the money that flows through my LLC?
No, you are not taxed on the total revenue flowing through your LLC. As a managed contractor, you are only responsible for paying taxes on what you personally receive as earnings.
Your merchant partner (not Earnwell) pays you directly, and you will receive a K1 or similar tax form for reporting your income. This is different from traditional LLC profit distributions, as your role is structured as an independent contractor under the merchant services agreement.
Who manages the money?
A U.S.-based accounting firm works with your merchant services provider to handle fund distribution and maintain regulatory compliance.
Extensive security measures are in place to ensure:
• Transactions remain compliant with tax nexus laws
• Financial transparency to prevent unauthorized activity
This is why monthly financial statements (with account numbers redacted) are required—they help ensure compliance and prevent issues like “skimming.”
What happens if a company doesn't pay or cancels?
Every business is required to maintain a reserve fund for this exact reason. This financial safeguard is in place to protect all parties involved—including EBOs like you. If a business cancels, the reserve ensures you are still paid according to the agreed terms.
Why is the trial period short?
International businesses use this phase to test market demand before committing to a full-scale U.S. expansion.
The trial allows them to:
• Gauge product viability in the U.S. market
• Navigate tax and compliance thresholds
• Assess operational costs before scaling up
One of the biggest factors is U.S. tax laws—once a business meets certain revenue thresholds, they may be required to:
• Register as a U.S. business entity
• File and pay U.S. taxes on their earnings
By running a structured trial first, businesses can determine if and when they need to take those next steps. This approach ensures they don’t overcommit too early, making it a sustainable, ongoing opportunity for EBOs.
What's the average length of the trial?
Merchant partners require a minimum of 5 months, but the average duration is 9-12 months. This gives businesses enough time to collect data, adjust strategies, and determine their next move.
Can I extend my participation?
Earnwell does not manage merchant partner availability. If you wish to continue beyond the initial trial, you’ll need to discuss options directly with your merchant partner once your program is approaching its wind-down period.
Can I earn more?
Yes! In addition to earning as an EBO, you can increase your earnings through Earnwell’s referral network. By referring new entrepreneurial business owners, you can generate ongoing, passive income while helping others access the same opportunity.
