Beyond Decriminalization: Sex-work, Human Rights and a New ...

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PIVOT LEGAL SOCIETYPART 6: COMPANY LAWBusiness structures: In B.C., businesses can be structured in several ways– a business may be set up as a sole proprietorship, a partnership, a corporation,or a cooperative. Sex workers felt that they should be able chooseamong the various structures that are available to businesses in general, andtheir industry should not be subject to any specific restrictions. Sex workerdescribed how the diversity within the sex industry creates a need for anumber of different types of business structures.A. There’s a place set up for co-ops, there’s a place in it for individual houses, and there’sa place in it, for a corporation.- female street-level sex workerSeveral participants expressed the view that sex workers should have the freedom to choose astructure that best suits their particular business objectives.A. It depends, people are going to have different preferences right? They make differentchoices. It’s where the profit’s best.- male street-level sex workerA. I think that we should have the same freedoms as any business, really.A. I think it should just be as broad as any other business. No restrictions.A. Anything could really happen . . . as long as it’s beneficial to the people working.- female off-street out-call sex workersMany sex workers felt strongly that sex work should be recognized as a legitimate business:A. But to me, it’s like, the big thing, is that it’s not called the oldest profession fornothing – it’s you know, the, almost, the most basic, simplest transaction that everoccurred and it goes a long long long way back, and as far as I’m concerned, all otherenterprises probably followed it and based itself upon that original transaction. So Isee it as the, you know, sort of the initial, or the basis for entrepreneurialism, really.For free enterprise. So it ought to be respected as such.- female escort agency owner, former sex workerThe following discussion illustrates how sex workers see a number of potentially suitable businessstructures for prostitution.Sole proprietorshipsA sole proprietorship is the simplest way to structure a business, and is the easiest and least expensivebusiness to organize. A sole proprietor is a self-employed individual who is fully responsible forall aspects of the business. He or she establishes the business, retains all profits, is responsible for payingtaxes, and assumes all risks. While sole proprietors enjoy complete control over the business, they haveunlimited liability by virtue of being legally responsible for all debts in a situation where they place boththeir business and personal assets at risk.174
BEYOND DECRIMINALIZATION: Sex Work, Human Rights and a New Framework for Law ReformMany participants liked the idea of being their own boss, particularly because of the autonomy ofbeing self-employed.A. You just have your own decision-making capabilities. And why not be your own boss?- female off-street out-call sex workerAnother escort believed that she would get more business by working independently:A. I mean, this business is really . . . a lot is determined upon your looks, okay? SoI’m older, all of my friends are older, and so if I was to go work for a place with 30women, I would never get picked because I’m not 20, and I’m not blond with bigboobs and the whole nine yards of what they want so for me, it’s better to work independent.- female off-street out-call sex workerAn owner agreed that sex workers should have the freedom to work independently:A. I just like most of what I do to be encouraging that person to be self-employed andbe in charge of what they’re doing for themself. I think in sex work, that’s a reallygood way to handle it in that if you’re employed by someone, you may start to feel likeyou’ve got to do whatever they tell you to do, whenever they tell you, and I like theidea that there’s an independence and you can say, you know “this doesn’t work forme.” ’Cuz it’s a sensitive area, you know, you never want to be told, you know, “youmust this” or “you must that.”- female escort agency owner, former sex workerIn sum, a sole proprietorship is a simple and inexpensive business structure that appeals to many sexworkers because of the independence it affords.PartnershipsIn a partnership, two or more people carry on a business together with a view to making a profit. In B.C., partnerships are governed by the Partnership Act (the “PA”). Partnerships are relativelysimple to set up and dissolve. The partners may have a written partnership agreement that sets outhow profits will be shared, decisions will be made, disputes will be resolved, future partners will beadmitted, and how a partner can leave the partnership. The partners may decide how much time andcapital each will contribute to the partnership. Alternatively, a partnership may arise without a formalagreement if two or more people are carrying on business together with the goal of generating profit.In either case, the partnership is governed by the terms set out in the PA.Partnerships are not legally recognized as distinct entities. Rather, the profits and losses of thepartnership flow through to the individual partners, who must pay taxes on these amounts in theirpersonal tax returns. Each partner who is active in the management of the business is fully liable forall obligations of the business, even if other partners incurred the obligations. Like sole proprietorships,partners put their personal assets at risk, but enjoy the benefits of working and sharing profitswith others. A partnership appears well suited as a business structure for prostitution. Many participantsindicated a desire to work with other sex workers, and to maintain control over their working conditions.Safety concerns were a significant factor in many participants’ preference for some form of partnershipwith other sex workers. This desire for a supportive workplace is illustrated in the followingdiscussion: Partnership Act, R.S.B.C. 1996, c. 348, s. 2. Ibid. Ibid., s. 7(2).175
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