The Legal Do’s and Don’ts Around Starting An Online Business

Starting an online business can be a daunting task. There are so many things to think about – from the initial planning stages to the day-to-day tasks of running your business. And then there are the legal considerations. So what are the do’s and don’ts when it comes to setting up and running your online business? This blog post will take a look at some of the key legal issues you need to consider when starting an online business.

1) Choose the Right Legal Structure:

One of the first and most important steps when starting an online business is choosing the right legal structure. This will determine how you’re taxed, as well as any liabilities associated with your business. Generally speaking, there are three main types of legal structures to choose from – sole proprietorships, limited liability companies (LLCs), and corporations. Depending on where you live, other options may also be available. It’s important to speak with a lawyer or accountant to make sure that you choose the best option for your particular situation.

2) Get Your Business Licences and Permits:

Depending on what type of business you’re running and where it’s located, you may need to get specific licences and permits before you can start operating. This could be anything from a business licence to a health inspection for food-related businesses to access for selling alcohol or tobacco products. Depending on your particular situation, failure to secure the necessary licences and permits could result in hefty fines or even jail time. Therefore, it’s important to do your research beforehand and make sure that you have everything you need before starting your online business.

3) Protect Your Intellectual Property:

Suppose you’re going to be using any intellectual property (such as trademarks, copyrights, patents, etc.) when running your online business. In that case, it’s essential that you protect yourself by registering them with the relevant government bodies. This will ensure that no one can make money off your hard work and will also help protect you from any potential lawsuits. Furthermore, if you’re going to be using any content from third-party sources – make sure that it’s appropriately licensed and that you have the necessary permissions.

4) Draft an Employee Contract:

If you plan on hiring anyone, even as a freelancer or contractor, make sure that you draft up an employee contract. This is a legally binding agreement between yourself and your employees, outlining everything from job responsibilities to salary information. It should also include details such as non-disclosure agreements, intellectual property rights, and other important legal considerations. An employee contract will help to protect both parties in the event of any issues arising.

Via Pexels

5) Draft a Privacy Policy:

If you’re going to be collecting or storing any personal information from customers, then you need to have a privacy policy in place. This should include what type of information you’re collecting, how it will be used, who has access to it, and how long it will be stored. Not only is this important for protecting the data of your customers – but failure to comply with relevant laws could result in hefty fines.

6) Get Professional Help When Necessary:

As with any legal issue – if you’re ever unsure of something or need some professional advice, it’s best to seek the help of a qualified lawyer. An experienced attorney can provide you with the information and guidance you need to ensure that your business is compliant with all relevant laws and regulations. In addition, they can help you with any legal documents or contracts that may be required.

7) Creating an Online Presence:

You’ll need to create an online presence when setting up your online business. This could involve registering a domain name and creating social media accounts. It’s important to ensure that you understand these activities’ legal implications – such as trademark infringement, copyright issues, etc. Furthermore, when setting up a website, make sure that you call in the assistance and help of an expert witness in SEO (Search Engine Optimization), who can help to make sure your website is listed in Google and other search engines, making sure all legal requirements are met.

In conclusion, starting an online business can be a complicated and daunting task. In addition, you need to consider several legal issues, from choosing the right legal structure to protecting your intellectual property. Therefore, it’s important to do your research beforehand and to speak with a lawyer or accountant if you have any questions or concerns. With the right preparation, however, starting an online business doesn’t have to be overwhelming – it can be a great way to make money while working from home.

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About Dequiana Jackson

Dequiana Jackson, Founder of Inspired Marketing, Inc., helps overachieving women entrepreneurs conquer limiting beliefs and create marketing plans that grow their businesses. This includes one-on-one marketing plan development, digital product creation, web design and content marketing. Dequiana is the author of Know Your Business: How to Attract Ideal Clients & Sell More and runs the award-winning blog,

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