6 Legal Tips for Starting Your Online Business

📝Choosing the right legal and tax structure is crucial for your online business. Keep it simple and consider forming an LLC for added protection.

🔎Before using a brand name or domain, conduct a trademark search to avoid infringement. Check the USPTO database and do a Google search to ensure no one else is using it.

🔐Having a privacy policy is essential, even if you don't have a website. Clearly communicate how you use customers' information to comply with legal requirements.

📄Research and obtain the necessary business licenses and permits from local and state authorities. Check your city or town's website and consult with officials if needed.

💰Understand your sales tax obligations, especially if you sell products. Consider utilizing a marketplace facilitator to handle sales tax collection and reporting.

What legal and tax structure should I choose?

—Consider a simple legal structure like a sole proprietorship or an LLC for added protection and flexibility.

How can I protect my brand from trademark infringement?

—Perform a thorough trademark search before using a brand name or domain. Check the USPTO database and do a Google search for potential conflicts.

Is having a privacy policy necessary?

—Yes, it's crucial to have a privacy policy to comply with legal requirements and inform customers about how their information is used.

What licenses and permits do I need for my online business?

—Research and obtain necessary licenses and permits from local and state authorities. Check your city or town's website and consult with officials if needed.

How should I handle sales taxes for my online business?

—Understand and comply with sales tax obligations. Consider using a marketplace facilitator to handle sales tax collection and reporting.

00:16Choosing the right legal and tax structure is essential for your online business. Keep it simple, and consider forming an LLC for added protection.

01:48Conduct a trademark search before using a brand name or domain to avoid infringement. Check the USPTO database and do a Google search for potential conflicts.

03:51Having a privacy policy is crucial, even if you don't have a website. Clearly communicate how you use customers' information to comply with legal requirements.

04:44Research and obtain the necessary business licenses and permits from local and state authorities. Check your city or town's website and consult with officials if needed.

05:51Understand your sales tax obligations, especially if you sell products. Consider utilizing a marketplace facilitator to handle sales tax collection and reporting.

06:55For service-based businesses, create clear and specific terms and conditions for each type of service. Have customers agree to these terms during the purchasing process.