Jason Kulpa’s 6 Legal Essentials for Starting an Online Business

When job losses are at an all-time high, starting an online business has become an attractive proposition to many. Even those who don’t consider themselves computer experts can set up a shop in a single day. But in the excitement of creating a storefront, don’t forget to do the legal homework necessary to keep your business growing. In this article, serial entrepreneur Jason Kulpa shares six legal essentials for any new business owner to consider.

First Things First

Online businesses are easier to start than they once were, but that doesn’t mean that they can operate outside of the bounds of the law. Failing to put in your due diligence can lead to a failed business, but it can also cause years of frustrating and inexpensive legal problems. Before celebrating that first sale, make sure that you’ve got your legal ducks in a row.

Business Licenses and Permits

Online businesses have the same licensing requirements as brick-and-mortar stores.  Consult your local city hall to make sure that you’re compliant with regulations. Some products, such as medical supplies, may need further licensing.

Zoning Laws

If you plan to store a substantial amount of inventory in your home or apartment, it’s best to check your deed, lease, HOA rules, and zoning codes ahead of time.

Business Insurance

Safeguard your assets with liability coverage for your business. Liability insurance protects against financial losses that result from injuries, medical expenses, lawsuits, and property damage. Speak with your current insurance agent about extending coverage for your online business.

Copyrights, Trademarks, and Patents

One of the quickest ways to get into trouble is to launch a product or business that in some way infringes on the laws for copyrighting, trademarking, or patenting.

Copyrights protect the literary, musical, or artistic work of an individual, and trademarks refer to the name of a company or product. A patent is a license, usually given for a set period of time, for a company or individual to use, make, or sell an invention. If you have questions, it is best to consult an attorney to make sure that you are operating within the bounds of the law.

Legal Policies

Online stores require at least two legal policies to be posted on their site:  A privacy policy disclosing how and why you collect personal information and the terms of use/service policy that clearly state the limits of your delivery, return, and liability policies.

More policies may be required, depending on your place of business, product, or service.

Shipping Restrictions

Many products that are legal to sell are difficult to ship, especially internationally. Before hanging the open sign on your online store, make sure that you understand any shipping regulations imposed on your merchandise.

Don’t let the legalities of starting an online business overwhelm your dreams. Begin laying the legal foundation before you get too far into development so you’ll have a clear understanding of the time and cost that will be involved in getting your business off to a strong start.

About Jason Kulpa

 Jason Kulpa is a certified Great Place to Work multi-year winner and the Founder and CEO of UE.co, He is also a multi-year recipient of San Diego’s Fastest Growing Business multi-year award. Jason and his teams donate many hours volunteering at events designed to improve the community of San Diego. He is especially passionate about supporting causes that benefit people with special needs.

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