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There are a number of fundamental legal issues that must be considered prior to launching an online business. The issues presented vary depending on the nature of the website that underpins the business, how it was developed (e.g. by whom), and the forms of intellectual capital that it contains. This tutorial will discuss the implications of applicable law and provide a suggested course of action regarding same, where appropriate. It will also discuss a host of issues that may not be initially apparent to an online entrepreneur, even to entrepreneurs that have been doing business online for quite some time. There are also a number of business processes that have legal implications due to the fact that business is being conducted online. Many of these are non-existent or irrelevant (for the most part) when conducting business offline. In short, the online context matters. Although starting an online business has never been easier (i.e. given the number of high quality tools available), the online context creates its own kinds of complexity, especially given the number of online contracts an entrepreneur may need to enter into, including, but not limited to, the following: 1) terms of use; 2) website development; 3) affiliate; 4) non-disclosure; 5) employment; 6) hosting; 7) advertising; 8) marketing and 9) operating agreements. In addition, there are intellectual property issues related to copyright, trademark, domain names and others that must be attended to in order to mitigate online legal liability, including taking advantage of certain “safe harbors” provided by applicable law. These safe harbors are available if, and only if, the correct processes are followed by the business. Furthermore, doing business online encompasses many of the same business/legal risks and challenges that any business faces, including developing a business concept that can be monetized and doing business using the appropriate legal structure (e.g. Limited Liability Company, Corporation, Professional Associations, etc.). In short, the intent of this online business startup tutorial is to sufficiently describe many of the legal and business issues surrounding doing business online. The various categories of the tutorial are all written with this objective in mind. |
| Starting an Online Business. People. Process. Platform. |
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