Terms, Conditions, Policies and Procedures
Getting Started:
How do I receive my initial credit to start the bartering process?
When a business is selected as a Local Trade Network member, they are allotted a credit in the form of barter units (one barter unit is the equivalent value of one U.S. dollar). The amount of credit each business is allotted is determined by the general amount their products and/or services sell for. After the credit amount is determined, the Local Trade Network member pledges to make available the equivalent amount of their goods and/or services to other Local Trade Network members.
For example, if a business is given an allotted credit of 500 barter units when they open their Local Trade Network account, they can then spend those 500 units to purchase goods and/or services from any other Local Trade Network members in the network.
If the member was given an initial credit of 500 units and has also made sales to other members in the amount of 150 barter units, they now have 650 barter units available to spend. In this way, members will also be able to spend any barter units earned by the sale of their own goods and/or services to other business members.
If a member spends the entirety of their 650 barter units on other members’ goods and/or services, and brings their account balance down to 0 barter units, they must wait until they sell more goods and/or services to other members before they can start making purchases again.
This system enables Local Trade Network members to purchase whichever goods and/or services that they are interested in, without the need to make a direct item for item trade with another member.
How do I spend my barter units?
To begin spending your barter units, view all of the active clients or available offerings by clicking on the Member Directory and searching through the businesses by category, or clicking on the search bar and typing in the name of either the category, or item and/or service that you’re looking for.
Choose the offering or company that you wish to connect with and this will direct you to their profile where you can access links to their website or other social media pages.
Research each company to see what products you might be interested in, and if you are interested in engaging in a barter transaction, message the seller to inform them that you would like to make a purchase for a specific good and/or service. The seller will then send you an invoice for the goods and/or services, that you can then purchase using barter units.
How do I process sales tax?
Selling client shall charge the buying client the appropriate sales and excise taxes in cash. Under no circumstances will Local Trade Network be responsible to pay any sales, excise, use or other tax on behalf on any client.
Reimbursement to Local Trade Network of a client’s initial credit, in the event of account closure or termination:
An initial credit is given to each member under the stipulation that whenever said member requests the closure of their Local Trade Network account, or has given Local Trade Network a reason to terminate their account, that they will reimburse their initial credit amount back to Local Trade Network in cash dollars, or make the equivalent amount of their goods and/or services available to other Local Trade Network members until the equivalent amount of the initial credit has been repaid or reimbursed. At this time, the member’s account will only remain open for the purposes of repaying the initial credit, and the member will no longer be able to make purchases from their account.
For example, when a member receives an initial credit of 500 barter units, and they then spend those units to bring their account to a balance of 0 barter units, the original credit of 500 barter units given to the client when they opened their account shall be due, and is either payable in cash, or the client can agree to continue to make their goods and/or services available, until the equivalent amount of goods and/or services has been provided to other members in the equivalent of 500 barter units.
If the original credit amount has not been repaid within six months from the member’s account cancellation request, or account termination, Local Trade Network reserves the right to charge the business’ debit/credit card that is on file, in the amount of the unpaid credit due. If, for any reason, Local Trade Network’s efforts to charge the member’s debit/credit card on file are unsuccessful, the member’s unpaid balance will then be forwarded to a collection agency for repayment.
PROVISION OF SERVICES
Local Trade Network will provide online and broker managed Trade Services to you (the "Account Holder" or “Trader” or “Member”) in exchange for payment of transaction and monthly account fees pursuant to compliance with the terms and conditions of this Agreement. Local Trade Network will act as a third-party record keeper of transactions between Traders, and as a clearinghouse to direct Traders to each other. Trader grants Local Trade Network the exclusive right to regulate the exchange and make decisions in its judgment deems necessary.
The Trade Service is defined as the use by the Account Holder of exclusive website access, software access, and information services provided by Local Trade Network ’s brokers and trade consultants. The Service may also include access to information services provided through the Internet or by third party providers (collectively, "Non-Local Trade Network Content").
The Account Holder recognizes that Local Trade Network has no control over the availability, content and performance of its website. Local Trade Network does not warrant or support any Non-Local Trade Network content. The Account Holder recognizes that Local Trade Network content cannot be screened, censored or safeguarded by Local Trade Network with regard to copyright, obscenity, integrity, safety or reliability. The Account Holder assumes all risk and liability when accessing the Local Trade Network website and agrees to indemnify Local Trade Network in accordance with additional terms below.
Contact Permission
Member gives Local Trade Network permission to send trade offerings, member updates, newsletters, statements and related advertisements via email, fax, USPS on a regular basis.
Proprietary Information
Members agree that all Member directories, address lists, email lists, offerings and communications by email, fax, mail or any other form of communication are proprietary to Local Trade Network and its members only. Unauthorized distribution to any non-member of Local Trade Network or to any competing trade group is a breach of this agreement. Access to the client portion of the Local Trade Network website is for Local Trade Network members only. Members agree to not share their log in with anyone. Such violation will result in termination of membership. Further, any unauthorized use of a Local Trade Network membership list by a member for purposes of soliciting sales, donations or contributions of any kind is a breach of this agreement.
USE OF SERVICES
The Account Holder agrees to maintain and keep account log-in information including but not limited to the account name, federal ID and password secure and private.
The Account Holder agrees not to use, via the Internet, any process, program, or tool designed to discover the access information of account holders on Local Trade Network . The Account Holder agrees not to use the Service to make unauthorized attempts to access the accounts of others.
The Account Holder agrees to use the Service only as permitted by applicable local, state, and federal law. The Account Holder agrees, therefore, not to use the service to plan, incite, promote, facilitate, solicit or conduct any business or activity that is prohibited by law.
The Account Holder acknowledges that Local Trade Network is a commercial entity and that Local Trade Network is connected to one or several Internet Service Providers ("ISPs"). The ISPs may only be used by Account Holders to conduct legal business. This business should, however, not impinge upon the use of the Service by other account holders. The Service may not be used to send unsolicited advertising or promotional materials to other Account Holders. Other prohibited activities include, but are not limited to, propagation of computer worms and viruses, and using the network to make unauthorized entry to any other machine accessible via the network.
Nature of the Trade Dollar
Trade dollars shall not be considered as legal tender, a commodity or a security by either Local Trade Network or its Traders. Trade credits are not negotiable as cash. For tax purposes, bartering is equivalent to a cash sale and subject to IRS 1099B reporting. Use of trade dollars is a taxable event and each member is solely responsible for reporting all applicable local, state and federal taxes resulting from trade transactions. Local Trade Network must be informed of any change in a member’s legal tax name/number status. It is understood and agreed that Members may not be considered a creditor of Local Trade Network or the exchange in relation for a Member’s ability or lack thereof to utilize or spend trade dollars in their account. Member acknowledges that trade dollars in the barter system (positive balances) are the liabilities of persons/companies who have spent more than their earnings (negative balances); that there is a creditor/debtor relationship between such persons, and that trade transactions incur the normal business risks associated with any credit transaction. As a general rule, trade dollars are the liabilities of Members who owe the barter system, and not of Local Trade Network , which is solely liable for its own indebtedness. Local Trade Network is authorized to establish a bad debt reserve fund by charging all accounts on a regular basis an amount in trade dollars to be paid into such a fund. Any positive balances abandoned or surrendered by former members in accordance with the Rules may also be paid into the reserve fund. Further, member grants Local Trade Network and its officers and directors the authority to regulate and control the amount of outstanding trade dollars in the barter exchange and to borrow and spend trade dollars in accordance with best practices and recommendations established by the National Associations of Trade Exchanges.
Local Trade Network & How It Works
What is Local Trade Network?
Local Trade Network is an online database where clients can search for, and interact with, fellow members to create barter connections. This is also the space to speak with barter brokers, make payments, and get updated on the latest news and promotions within the community.
Local Trade Network can be legally referred to as either Local Trade Network or LTN. Also, Port 144 is a nickname for Local Trade Network, that for all legal purposes, can be interchangeable with the names Local Trade Network or LTN.
What is a barter exchange?
A barter exchange is defined as a trade company that plays the role of a third party record keeper of the trade transactions between it’s clients, which are businesses that contract with Local Trade Network to facilitate barter of their goods and/or services with other business owners.
What is a barter unit?
A barter unit is an accounting measurement used to record the value of trades between businesses. One barter unit is equal to one U.S. dollar. Ownership of barter units represents the ability to access and receive goods and/or services that are offered within the trade network. Barter units may only be used specifically in the way, and for the purpose, laid out in Local Trade Network’s trading Policies and Procedures. Barter units will not be considered legal tender, securities, or commodities. Barter units are not redeemable for U.S. dollars. Local Trade Network disclaims responsibility for any negotiations between businesses concerning barter units.
What is a barter broker?
A barter broker is a Local Trade Network employee that manages the record keeping of the goods and/or services that are traded between Local Trade Network business clients. A barter broker will also help stimulate and facilitate trade between Local Trade Network members.
Account and Cash Payments
How much does it cost to become a member of Local Trade Network?
The membership start up fee, for both global and local members, is $30.
How much does it cost a month to be a Local Trade Network member?
For global members, Local Trade Network charges $50 in cash, as well as $10 in barter units, per month.
For local members, Local Trade Network charges $35 in cash, as well as $10 in barter units, per month.
How do I pay my monthly membership subscription?
All Local Trade Network members will be required to hold a debit or credit card on file. Members will be billed on the 1st of each month for the previous month’s membership. If your business joined LTN in the middle of a monthly billing cycle, on the 1st of the following month, members will be charged a prorated amount based on the number of days in the previous month that they were an active LTN member.
The monthly barter unit fees will also be automatically withdrawn from your LTN barter account balance on the 1st of each month. Members will not be charged any barter unit fees until after the completion of their first full calendar month of membership. Partial months will not be charged barter unit fees.
Do I pay monthly fees if I don’t make any sales?
In the event that a member does not record any sales during a monthly billing cycle, the member will not be charged cash or barter unit fees for that month.
How do I cancel my membership subscription?
If you would like to cancel your subscription, send a message to a Local Trade Network representative stating that you would like to close your account.
If your account balance is greater than your initial credit amount:
If, at the time of the cancellation request, a member’s barter unit account balance is greater than the initial credit that the member was issued when their account was opened (when each member joins Local Trade Network they agree to offering a predetermined amount of goods and/or services in exchange for a credit, in barter units, of the equivalent value of the goods and/or services offered), the initial credit will automatically be reimbursed to Local Trade Network from the member’s account balance, and the remaining balance will be left available for the member to spend within three months of the member’s cancellation request.
For example, if a member that was issued an initial credit of 500 barter units submits a cancellation request when their current account balance is 650 barter units, the initial credit of 500 units will be withdrawn by Local Trade Network from the member’s account balance, and the member will now have 150 barter units available to spend in their account. The member has the option to either spend the 150 barter units over a three month period, or donate the remaining balance to Local Trade Network members. After the submission of their cancelation request, the member’s account will be placed on “hold”, and will only remain open for the purposes of spending any remaining balance. The member will no longer be able to sell any of their goods and/or services.
If your account balance is less than your initial credit amount:
If, at the time of the cancellation request, a member’s account balance is less than the initial credit that the member was issued when their account was opened (when each member joins Local Trade Network they agree to offering a predetermined amount of goods and/or services in exchange for a credit in barter units of the equivalent value of the goods and/or services offered), the member is liable to reimburse the difference between their current account balance and the initial credit that the member was issued upon opening their account. The member has the option to either pay the amount of the difference in cash to LTN, or continue to make their goods and/or services available to other Local Trade Network members, until the equivalent amount of the difference between their current balance and the original credit is paid off. The member has a six month window to do this from the time of the cancellation request.
For example, if a member that was issued an initial credit of 500 barter units submits a cancellation request when their current account balance is 200 barter units, the member will owe a total of 300 barter units to be repaid over the next six months. As stated above, this repayment can be done directly in the form of a cash payment to Local Trade Network, or in the form of goods and/or services sold to other Local Trade Network members. After the submission of their cancelation request, the member’s account will be placed on “hold” for a maximum of six months, and will only remain open for the purposes of reimbursing any remaining balance. The member will no longer be able to purchase any goods and/or services from Local Trade Network members during this time. If the original credit amount has not been repaid within six months from the member’s account cancellation request, Local Trade Network reserves the right to charge the business’ debit/credit card that is on file, in the amount of the unpaid credit due. If, for any reason, Local Trade Network’s efforts to charge the member’s debit/credit card on file are unsuccessful, the member’s unpaid balance will then be forwarded to a collection agency for repayment.
In this same example, if the members account is at an even amount of the original $500 barter units credited, the member is in even standing, and doesn’t owe anything more to Local Trade Network, or its members.
In the event that a member chooses to pay off their remaining balance in the form of providing goods and/or services to other Local Trade Network members, the quality of the goods and/or services rendered are expected to meet a standard that is acceptable to the purchaser. If the quality of goods and/or services rendered is found unsatisfactory, or the recipients of those goods and/or services file a complaint regarding poor quality, the Local Trade Network member attempting to repay their initial credit will be required to reimburse any barter units received back to the original purchaser of the goods and/or services. The Local Trade Network member attempting to settle their account will also no longer be given the option to repay that credit in the form of goods or services rendered, and will be required to make a direct cash payment to successfully close their account. If, for any reason, Local Trade Network’s efforts to charge the members’s debit/credit card on file are unsuccessful, the member’s unpaid balance will then be forwarded to a collection agency for repayment.
How to keep your Local Trade Network account in good standing:
A client who participates in trades in accordance with Local Trade Network’s trading policies and procedures, has paid in full any money owed to Local Trade Network, and has valid barter units in their account is considered a client that is in good standing. Only clients in good standing have access to Local Trade Network’s services. When a client has, by their conduct or misconduct, shown to Local Trade Network that they have failed to meet the standards set in the client’s own industry (in relation to the quality of goods and/or services) or has been charged with the commission of a crime involving fraud or immorality, or otherwise displays to Local Trade Network that the client’s reputation in the business community has been in decline, then for the protection and well being of other Local Trade Network clients, Local Trade Network reserves the right to restrict the use of the client’s barter units to purchases only; and shall restrict the rights of said client to sell or advertise their goods and/or services for sale, until such time as the client can exemplify to Local Trade Network that the expectations within the client’s own industry can be met. Cancelled or expired debit/credit cards can also result in the removal of a member from being a client in good standing. Local Trade Network reserves the right to terminate or suspend the account of any member no longer in good standing, at Local Trade Network’s discretion.
Buying & Selling On Local Trade Network's Platform
How does the Local Trade Network bartering system work?
Local Trade Network provides a list of potential trade partners to trade and barter with. The customers in our directory pay for products and/or services with barter units (1 barter unit is worth 1 U.S. dollar), that can be exchanged with any other participating business in the trade network. Local Trade Network keeps a record of all sales and purchases, as well as provides you with your own access to the necessary monthly statements and tax documents. It is our hope to help stimulate the local economy, and to help ease the burden of the current financial climate by providing our customers with another alternative to mainstream commerce.
What is a barter ID number, or member account number?
A barter ID number, also referred to as a member account number, is the identification number issued to a member by Local Trade Network that corresponds with you and your business’ LTN account. This number will be used by Local Trade Network to track and log all of your business’ barter transactions.
Can I trade with other exchange members via a direct barter swap?
Yes. This is another part of what makes Local Trade Network unique amongst other barter clubs. We do not prohibit members from doing direct item for item, service for service, or service for item trades with another member. These swaps are between the members only, however, and do not include Local Trade Network’s participation. Local Trade Network is not responsible for any trades done in this fashion, and is exempt from all unsatisfactory circumstances due to direct trading.
How do I pay at restaurants or entertainment venues?
You can pay at restaurants, entertainment venues, other establishments that sell food (and drink), or any other similar purchase that may not have a predetermined total by utilizing either gift certificates, or store credit provided by the seller.
How do I pay gratuities when bartering?
Gratuities owed for services received are to be paid in cash. It is never appropriate to pay for gratuities owed with barter units.
What happens to a client’s barter units after a transaction for a service has been submitted but is still pending completion?
In the event that a transaction is approved, but pending completion, the amount of barter units equalling the cost of the pending goods and/or services will be placed on hold in the buyer’s account. At the time of successful completion of the transaction’s services, said barter units will then be withdrawn from the buyer’s account, and the barter units will be transferred into the seller’s account.
Can I give barter units to another person?
If you want to share your barter units with a person outside of the Local Trade Network, you can purchase a gift certificate from a member who possesses the goods and/or services that is desired by the outside non-member, and then give that gift certificate to the non-member. If you want to give barter units to another LTN member, you can do this by messaging a Local Trade Network representative, and request a transfer of your barter units from your account to the account of the member that you wish to transfer your units to.
Can I sell my barter units?
Barter units may not be sold for cash dollars.
When should I get a written estimate for a barter purchase?
The buyer should obtain a written estimate from the seller before authorizing the work (or service) to begin for any purchases over 300 barter units. The sellers may also wish to obtain a work in progress deposit, or down payment, in barter units in the same non-refundable manner as a cash transaction. Work in progress deposits and down payments are considered normal trades.
When should I give a written estimate?
The following procedures apply to barter transactions involving special orders, service work, construction jobs, and other work in progress transactions.
The selling client should give a written estimate to the buying client before authorizing work to begin, if that estimate is to equal three hundred ($300.00) barter units or more. Selling client must obtain approval from a Local Trade Network representative before they start the barter transaction. Local Trade Network will only issue approvals for the barter amount in the buying client’s account. Local Trade Network will not issue work in progress approvals for buying clients who are not in good standing. Work in progress deposits and down payments are considered normal trades. Clients are required to follow applicable policies and procedures.
What is a work in progress transaction?
The seller should obtain a work in progress deposit/down payment, in barter units, in the same non-refundable manner as a cash transaction, for all large transactions. Work in progress deposits and down payments are considered normal trades. The final payment will not be credited into the seller’s account, until the job has been 100% completed by the seller.
What is a waiting list?
In the event of high client demand or short supply, certain goods and services are available on a limited basis only. LTN members have the option of creating their own waiting lists for requests of goods and/or services that are in high demand.
What does it mean to put my own account “on hold”?
On occasion, clients may request to have LTN place their account temporarily on hold, because they do not want anymore barter business at that time. Clients typically go on hold if they are too busy to accept new barter business. Local Trade Network representatives will not list a member that is on hold in the Local Trade Network directory until they become active again.
How can my account be placed “on hold” by Local Trade Network?
Local Trade Network may place your account on hold status under the following conditions:
- Client’s account does not have a positive barter unit balance.
- Unsatisfactory service has been provided by the member, and complaints have been filed.
- Member’s monthly membership fees have not been paid, and are over 30 days past due.
Instances where part-cash/part-barter transactions may be necessary:
Sellers who must obtain special order parts can charge cash for these parts. This can occur when a selling client has to purchase a special order product that they do not normally carry in stock.
For example, a plumbing contractor will provide all of their labor and services for 100% barter; however, they will not barter for a new water heater that they have to special order. That water heater will have to be paid for in cash by the buyer.
A part-cash/part-barter transaction may also take place in instances in which both the seller and the buyer mutually agree to do so.
What happens when a client tries to charge me cash?
Members can agree to do part-cash/part-trade transactions. However, if the seller has previously agreed to do a non-cash transaction, the original arrangement must be honored by the seller. If the seller refuses to honor the original arrangement, the buyer has the right to report the seller’s activity to a Local Trade Network representative.
How do I update my federal name and tax identification number?
You can update this information by accessing your Local Trade Network account profile, and making any necessary changes. Members may also contact a LTN representative if further assistance is needed.
Rules and Regulations
Responsibility for the quality of the products and services that are purchased through bartering:
Responsibility for the conduct of a trade is exclusively that of the two clients participating in the trade. The duty to inspect goods and services for quality and quantity rests upon the buying client. Trades are entered into on a voluntary basis between the clients. Local Trade Network assumes no responsibility for the quality, timely delivery, warranty or service being traded. Clients should exercise the same diligence entering into trades as they would with normal cash transactions. Client does hereby indemnify and hold Local Trade Network harmless with respect to any claim, debt, or liability, whatsoever, arising out of any trade exchange transaction wherein client is a buyer or a seller.
Who is responsible for product and service warranties?
The sole and exclusive warranty made by the selling client is that it has title to such products free and clear from any lien or incumbrance. Other than set forth above, goods and services are sold “as is, where is”, with respect to any goods and/or services purchased by the buying client through Local Trade Network. Buying client recognizes that such items are produced and provided by others, and not by Local Trade Network or its affiliates. Local Trade Network makes no warranty, either expressed or implied, by operation of law or otherwise and disclaims all liability as to the fitness, quality, delivery date, merchantability, prices or any term of the trade transaction, and the buying client shall look solely to the manufacturer, distributor or retailer of such merchandise for any warranty. Buying client acknowledges that any trade transaction in which it participates shall be on a voluntary basis.
Does Local Trade Network have the right to advertise my company?
Unless otherwise stipulated in the Local Trade Network client application and agreement, the client authorizes Local Trade Network to notify and/or advertise to other clients, and potential clients, the availability of any existing clients’ goods and/or services.
What do I do if I think a client is overpricing?
The buying client is responsible for reporting all incidents of overpricing to a Local Trade Network representative. Clients are required to sell their goods and services at their prevailing retail prices for 100% trade credit. Selling clients are not obligated to honor sale prices and may charge their prevailing retail prices. Local Trade Network reserves the right to inquire into complaints of overpricing. Violations may result in the termination of client’s account.
How do I process a complaint about another client?
Clients may wish to submit a complaint to a Local Trade Network representative. A copy of the complaint will be kept in each client’s file, and a copy will be sent to each client. Local Trade Network is functioning in a brokerage capacity, and as a third party record keeper. Trade disputes are only between the buying client and the selling client, and shall be settled by the parties themselves. Local Trade Network is to be held harmless on any liability question arising between clients.
What happens if a client has multiple complaints about their business?
Local Trade Network implements the “three strikes and you’re out” rule. If Local Trade Network receives more than two written complaints on a given client for, either poor performance, or attempting to charge in excess of client’s normal retail prices, Local Trade Network reserves the right to terminate the client’s account.
What happens if my monthly membership subscription fee payment gets declined?
If your subscription payment through the debit/credit card on file gets declined, the Local Trade Network member has 30 days to have adequate funds in their account, or to provide a new form of payment to be kept on file. In light of this, the Local Trade Network member has 30 days to bring their account back into good standing. If payment is not received within 30 days the account will be suspended.
Can Local Trade Network suspend my trading privileges?
Local Trade Network reserves the right, at its sole discretion, to suspend the trading privileges of any client, 1) Who owes outstanding cash fees due to Local Trade Network which are more that 30 days past due. The trading privileges of the client shall be reinstated immediately upon payments of such past due fees. 2) Who ceases to be a client in good standing. If any of the above situations occur, client shall be given notice of such suspension.
When does Local Trade Network have the right to terminate my account?
Local Trade Network reserves the right, at its sole discretion, to terminate the account of any client if, 1) Local Trade Network has received more than two complaints for either poor performance or attempting to charge in excess of the client’s normal retail prices. 2) Client commits fraud against Local Trade Network or other clients. 3) Client is charging cash. 4) Client is overpricing. 5) Client is not following the trading policies and procedures. 6) The filing of any proceedings or petition by client by federal or state law seeking protection from its creditors or any assignment made by client, whether formal or informal, for the benefit of creditors. 7) The appointment of a receiver or trustee with respect to clients business affairs or the filing of any involuntary proceeding against client by its creditors. 8) Client’s loss or suspension of any license held by it, which is necessary for client’s business operation.
What happens if I file for bankruptcy?
Client grants Local Trade Network a security interest, and all barter units credited, and to be credited, to client’s account for the amount of all unpaid cash fees. In the event of the insolvency or bankruptcy of client, all cash fees, including the original credit given to the client when they opened their account, shall be due, and either payable in full in cash, or the client can agree to continue to make their goods and/or services available until the equivalent amount of goods and/or services have been provided to equal the amount of the cash fees that are due on the account. If providing services to other members after the client is no longer a client in good standing, client must provide such services in a professional and satisfactory manner, as well as in a way that meets the buyer’s expectations. Failure to do this, in any capacity, will result in a permanent suspension of the right to reimburse Local Trade Network via the act of providing goods and/or services, and the outstanding amount due will be owed and payable, in full, in cash.
How can I terminate my account, if I choose to do so?
Either party may terminate the client application and agreement via a written notice. Immediately upon termination, all cash and barter unit service fees become due and payable:
- If the client has a positive barter account balance (sales exceed purchases) and is a client in good standing, the client may stay active and spend the balance until purchases equal sales. If the client has a positive barter account balance (sales exceed purchases) and the client’s application and agreement has been terminated by Local Trade Network, the client will be granted 30 days to spend the remaining positive balance on their account, under the designated restriction that the client’s sole remaining transaction capability will be to spend that remaining balance. All barter units that are not spent within the 30 days from the date of the termination letter will be forfeited, and placed by Local Trade Network into its general operating account.
- In the event that Local Trade Network incurs any costs or expenses to collect any sum due to Local Trade Network from the client, then Local Trade Network shall be reimbursed by the client for any such costs or expenses, including reasonable attorney’s fees. In the event Local Trade Network is the prevailing party in any other controversy or proceeding involving client, then Local Trade Network shall be entitled to the recovery of it’s costs, expenses and reasonable attorney’s fees, in addition to such other remedies being sought therein.
- If a Local Trade Network member shall go out of business, any debt owed to Local Trade Network shall be repaid from the Local Trade Network member directly to Local Trade Network, and will become immediately due to Local Trade Network in cash. This payment constitutes a sale to the client. Local Trade Network is required by law to report all barter income to the Internal Revenue Service on a 1099B.
What happens when I end my membership subscription with Local Trade Network?
When each member joins Local Trade Network, they agree to offering a predetermined amount of goods and/or services in exchange for a credit in barter units of the equivalent value of the goods and/or services offered. In the event that a Local Trade Network member chooses to end their membership subscription, the member has the option to either pay the equivalent amount in cash of goods and/or services that were originally credited to the member when opening their Local Trade Network account, or continue to make their goods and/or services available until the equivalent amount of the original credit is paid off. If the original credit amount has not been repaid within six months from the member’s account cancellation request, Local Trade Network reserves the right to charge the business’ debit/credit card that is on file in the amount of the unpaid credit due. If, for any reason, Local Trade Network’s efforts to charge the members’s debit/credit card on file are unsuccessful, the member’s unpaid balance will then be forwarded to a collection agency for payment.
Can Local Trade Network change the trading policies and procedures?
Local Trade Network may at its sole discretion change the trading policies and procedures of these agreements by giving clients 30 days prior written notice. Failure to give Local Trade Network written notice of objection thereto within such 30 day period shall be deemed to constitute acceptance by clients. By using the Local Trade Network, client agrees to accept the changes. Any purchases or sales after the 30 day notice period shall also constitute client’s acceptance of changes.
Tips For the Seller
How can I get more barter business?
Give abundantly. We have found that the members who are generous with their products and services have the most success in generating an overflow of sales.
Create Barter circles by forming a chain of business activity between you and 3 or more other members.
Make sure that your business’ website and social media links are listed on your Local Trade Network profile page, so that other members can view your products and/or services in greater detail.
Build a strong reputation among fellow members by delivering quality goods and services in a timely manner.
Tax Information
What are the tax advantages of bartering?
The Internal Revenue Service (for U.S. based members) treats barter income just like cash income. The best tax advantage is to use the earned barter income to purchase the normal expenditures that are tax deductible. Local Trade Network recommends that you to seek professional accounting advice.
Is barter taxable income?
Clients, located in the U.S., are advised that transactions involving barter dollars are generally treated as taxable events for federal, state, and local tax purposes. The declaration and reporting of all applicable local, state, and federal taxes resulting from trades rest solely with the client.
How do I process sales tax?
Selling client shall charge the buying client the appropriate sales and excise taxes in cash. Under no circumstances will Local Trade Network be responsible to pay any sales, excise, use or other tax on behalf on any client.
What is the Tefra Act of 1982?
In the United States, barter exchanges are defined as third-party record keepers under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), and as such, are subject to Internal Revenue Service (IRS) Form 1099-B reporting for the annual gross barter sales of the barter exchange’s members. As a result, barter exchanges are also subject to IRS imposed Civil Penalties for non-matching Tax Identification Numbers (TINS), and therefore must comply with Publication 1281 B-Notice solicitation requirements where non-matching Tax Identification Numbers (TINS) have occurred.
What is a Form 1099-B?
In the United States, barter exchanges, whether Internet based or with a physical location, are required to file Form 1099-B for all transactions (barter income). A Form 1099-B is a form issued by a barter exchange that summarizes the proceeds of all barter transactions (barter income). These sales must be reported to the IRS when you file your taxes.
Why does Local Trade Network need to know my federal identification number and/or social security number?
Local Trade Network is required by federal law, for members in the U.S., to obtain the correct taxpayer identification number of client, who is required by law to provide such number, and to report all trade sales of client to IRS on Form 1099-B.
What do I do if I change my name, company name, and/or taxpayer identification number?
In the event that a client changes his or her legal name, company name, and/or taxpayer identification number (TIN), applicant is required to inform Local Trade Network within ten (10) days. At that time, client must complete a new client Application and Agreement, and (for U.S. based members) Form W-9. Local Trade Network reserves the right, at its sole discretion, to suspend the trading privileges of any client who has had a name or number change until Local Trade Network receives the new signed client Application and Agreement, and Form W-9. Once the paperwork is received, all barter and cash debts and/or credits will be transferred into the new account.
What happens if my federal identification name and/or taxpayer identification number is incorrectly reported to the IRS?
For members based in the United States, it is the client’s responsibility to provide Local Trade Network with the correct federal identification name and number. Failure to provide the correct taxpayer identification number may result in the imposition of backup withholding of twenty (20%) percent of the gross proceeds of each sale transaction, under federal law. Client agrees to hold Local Trade Network harmless for any actions Local Trade Network takes to comply with federal tax laws. Clients should seek professional tax advice. IRS audit of client's account is subject to a twenty-five ($25.00) dollar cash charge per hour with a one (1) hour minimum. A cash administrative fee of fifty ($50.00) dollars cash for each trade transaction will be charged to any business or individual who provides Local Trade Network with an incorrect taxpayer identification name and/or taxpayer identification number (TIN).
What are the important barter links on the IRS website (for U.S. based members)?
Click the links below to view barter information listed on the IRS website (http://www.irs.gov/):
Bartering Tax Center (http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Bartering-Tax-Center)
Barter Exchanges (http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Barter-Exchanges)
Four Things You Should Know if You Barter (http://www.irs.gov/uac/Newsroom/Four-Things-You-Should-Know-if-You-Barter1)
Taxpayer Identification Number (TIN) On-Line Matching (http://www.irs.gov/Government-Entities/Indian-Tribal-Governments/Taxpayer-Identification-Number-(TIN)-On-Line-Matching)
Topic 420 - Bartering Income (http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Bartering-Tax-Center)
International Members:
For LTN members located outside of the United States, all tax and income related filings and documentation will be subject to the laws, rules and regulations of the country where the business is located. All of the necessary statements and documentation can be found within the member profile on the LTN website back end. Members are also encouraged to reach out to a LTN representative for any assistance needed retrieving such documents or information.
NO WARRANTIES
To the extent possible, Local Trade Network will make every effort to provide accurate information through its proprietary services. The account holder acknowledges that information available through non-Local Trade Network content may not be accurate. In any event, as to both Local Trade Network and Non-Local Trade Network Content, Local Trade Network makes no warranty, express or implied, regarding the quality, accuracy, or validity of data and/or information available, that access to the service will be available at any particular time, that operation of the service will be uninterrupted or error free, or that any particular result or information will be obtained. Member accounts are offered on an "as is" basis without warranties of any kind, other than warranties which are incapable of exclusion, waiver, or restriction under the law applicable hereto.
PURCHASE OF PRODUCTS OR SERVICES FROM MEMBERS OR USE OF INFORMATION, PROGRAMS OR OTHER MATERIALS OBTAINED FROM OR THROUGH THE Local Trade Network SERVICE IS AT THE SOLE RISK OF THE ACCOUNT HOLDER.
INDEMNIFICATION
Operation of this service carries inherent risks to Local Trade Network because Local Trade Network literally cannot control all aspects of the Service at all times. Accordingly, by acknowledging this Agreement, you agree to indemnify Local Trade Network for any damages, costs and expenses, including reasonable attorney’s fees, that accrue to Local Trade Network as a result of or arising out of your activities on the Service including, but not limited to, any claims for violation of any copyright, trademark, or protected material, any claim of defamation, slander, libel, disparagement or the like, any use of the Service for illegal purposes, or any use of the service to send or receive obscene materials.
MISUSE OF SERVICES
Your access to the Service is a privilege, not a right, and access to the Service is not guaranteed by this Agreement. The act of signing the Member Application and your use of the Service constitutes your acceptance of and agreement to be bound by this Agreement. This Agreement will be strictly enforced and violators may, at the sole discretion of Local Trade Network be suspended or terminated from access to the Service for any reason without prior notice or opportunity to be heard. Behavior in violation of the rules embodied in this Agreement carries potential risks to Local Trade Network and cannot be tolerated. Local Trade Network ’s failure to enforce a particular rule or policy on one occasion or against one person does not preclude the enforcement of the same rule or policy at a different time or against another person.
Any use of the Service that disrupts the normal use of the Service for other Local Trade Network customers is considered to be misuse of Local Trade Network services.
Modification, alteration, reverse engineering, decompilation, disassembly or creation of derived works based on Local Trade Network proprietary software or published products are misuse of Local Trade Network services.
Any violation of this Agreement is misuse of Local Trade Network services.
Violations of this Agreement or any of the Local Trade Network conditions of use are unethical and may be criminal offenses. You are expected to report to Local Trade Network any information you may have concerning instances in which this Agreement or the conditions of use have been or are being violated. When Local Trade Network becomes aware of possible violations, we will initiate an investigation. At the same time, in order to prevent further possible unauthorized activity, Local Trade Network may, at its sole discretion, suspend any involved account(s) form access to the Service. Confirmation of violations may result in cancellation of the individual account(s) and/or criminal prosecution. The account suspension may be rescinded at the sole discretion of Local Trade Network following payment of a re-connection charge.
Local Trade Network reserves the right in its sole discretion to suspend or terminate access to the Service to any member at any time for any reason.
LIMITATION OF LIABILITY
YOU JOIN AND PARTICIPATE IN THE SERVICE AT YOUR OWN RISK. Local Trade Network SHALL NOT BE LIABLE FOR ANY DAMAGES OR LOSSES WHICH RESULT TO YOU FROM YOUR USE OF OR PARTICIPATION IN THE SERVICE. Local Trade Network DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES, INCLUDING THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
Local Trade Network shall not be liable for any damage that Account Holder may suffer arising out of use, or inability to use, the Service or products provided hereunder. Local Trade Network shall not be liable for unauthorized access by third parties to your facilities or premise equipment or for unauthorized access to or alteration, theft, loss or destruction of your data files, programs, procedures or information through accident, fraudulent means or devices, or any other method.
IN NO EVENT WILL Local Trade Network , ITS AGENTS, OR AFFILIATES BE LIABLE FOR ANY OTHER DAMAGES, INCLUDING LOST PROFITS, LOSS OF DATA, OR OTHER SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES, ARISING OUT OF OR IN CONNECTION WITH THE PURCHASE, USE OR PERFORMANCE OF THE SERVICE.
ACCESS
Account Holder is responsible for and must provide all equipment and services necessary to access the Service.
CHOICE OF LAW AND FORUM
This Subscription Agreement is made and entered into in Colorado. By submitting the online application or signing an Account Application, you agree that any disputes between you and Local Trade Network will be governed by the laws of Colorado and you further agree to the exclusive jurisdiction of the Supreme Court of Colorado, for all disputes arising out of or related to this Agreement or your participation in the Service.
Any cause of action of Account Holder with respect to the Service must be instituted within one year after the claim or cause of action has arisen or be barred.
Attorney Fees and Costs
In the event Local Trade Network incurs any costs or legal fees to enforce any of the provisions of the Trade Membership Agreement or these Trading Policies and Procedures, the Trader agrees that reasonable costs or legal fees shall be assessed against them.
ENTIRE AGREEMENT
This Agreement and any operating rules published over the Service constitutes the complete agreement and understanding between Local Trade Network and the Account Holder regarding the Service and supersedes any other written or oral agreement.
Upon notice published on-line by Local Trade Network at its sole discretion, may modify this Agreement, and/or modify its pricing structure. Local Trade Network may, in its sole discretion and without prior notice, discontinue or change the services offered. Only Local Trade Network can modify this Agreement or change a rule or policy of this Service. Continued use of the Local Trade Network system by Member is acceptance of new terms.
