Episode Details

Stop The Amway Tool Scam Author Scott Johnson and Peter Mingils talk about the sudden and immediate closing of the Multilevel Marketing Company Modere, and then the Missouri House Bill 1120 on Pyramid Selling, and the Sovereign Citizen defense of BINT Founders

You can see more of what Scott Johnson has on https://www.facebook.com/stoptheamwaytoolscam

One question constantly that needs clarification for the anti MLM Community is whether an MLM Distributor owns a business or not. Here's the answer:
Yes, the IRS generally considers an MLM (multi-level marketing) distributor to be operating a business if they are actively engaged in selling products or recruiting others for profit. The IRS treats MLM distributors as self-employed individuals, typically classifying their activities as a sole proprietorship unless they've set up a formal business entity like an LLC or corporation.
Key points:
Income Reporting: Distributors must report earnings (from sales, commissions, or bonuses) on their tax return, usually via Schedule C (Profit or Loss from Business).

Expenses: They can deduct ordinary and necessary business expenses, like marketing materials, travel, or inventory, subject to IRS rules.

Independent Contractor Status: Most MLM distributors are considered independent contractors, not employees, meaning they're responsible for self-employment taxes.

However, the IRS evaluates each case based on factors like profit motive, time spent, and business-like operations. If the activity is deemed a hobby rather than a business (e.g., minimal effort, consistent losses), deductions may be limited. Always consult a tax professional for specifics.

is an mlm distributor considered a business owner by the IRS?

Yes, an MLM distributor is generally considered a business owner by the IRS if they actively engage in selling products or recruiting others with a profit motive. The IRS typically classifies them as self-employed, operating as a sole proprietor unless they've formed a separate business entity (e.g., LLC or corporation). They report income and expenses on Schedule C and are responsible for self-employment taxes as independent contractors. However, if the IRS views the activity as a hobby (e.g., minimal effort or consistent losses), it may not qualify as a business. Consult a tax professional for clarity.

Modere, a multi-level marketing (MLM) company specializing in clean wellness, beauty, personal care, and nutritional products, announced its abrupt closure on April 11, 2025, after 23 years in operation. The announcement was made via a brief statement on its website, expressing gratitude to customers and distributors but providing no specific reason for the shutdown. This lack of transparency left its global community of over 1 million customers and numerous distributors in shock and confusion.

Key Details Surrounding the Closure:

• Background: Founded in 2002, Modere marketed products like Liquid BioCell Collagen and Curb, a dietary supplement launched in September 2024, emphasizing clean-label, chemical-free formulations. It operated in multiple countries, including the U.S., Canada, Australia, Japan, and Europe, using an MLM model where distributors earned commissions through sales and recruitment.
• Sudden Impact:
  • Distributors and customers were caught off guard, with no prior warning. Social media posts indicate ongoing produ