In addition to what I said: the German bank account owner might get into 
trouble with the German tax system because of the money you earn "for him". 
He is actually obliged to tell the tax office about any kind of income he 
has and in my book that money you earn counts as his income, since he owns 
the account.

I don't know how the German tax office networks with German banks and 
whether they try to peek into transactions but I think that's a possibility 
for uncovering fraud. I don't think that you and your company are at any 
risk here, but your German friend might be.

In my opinion the only sane way out of this situation is that the German 
account owner terminates that account and that you open a real business 
bank account in your company's name.

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