Starting online business involves making informed decisions on key legal issues as well as considering some specific for the Internet business itself.
The success of a business venture depends on the potential of the new idea, on the talent and management skills of entrepreneurs, successful business model and executable business plan, technical expertise of leading team,efforts and passion in the project implementation, and also knowledge on the legal framework for business in order to be put on the strong foundations of the legality.
1. The choice of the right legal form
is decisive upon starting a new business.
Sole trader, partnership, capital company or non-profit organization or another, the choice of the right form depends on a few major factors. The limitation of personal liability of the entrepreneur is one of the most important factors. The limitation of personal liability of the entrepreneur is one of the most important factors as well as tax considerations and operational efficiency.
2. Domain name
As much as you like a specific domain name for associating your business on the Internet , you firstly must make sure that the chosen name won’t infringe someone’s trademark rights. What is reasonable, desirable and advisable to do is make sure that the chosen domain name is unique and no registered trademark under that name and check up whether goods or services with the same name are already marketed.
Your brand name and the associated reputation can become one of yours most valuable business assets, especially if you don’t possess significant material assets except the web server. The cost for trademark registration is reasonable investment and sometimes absolutely required step with significant consequences for your online business.
4. Permits, licenses and special requirements.
Your Internet business depending on the nature, scope and specific activities may be associated with applying of specific laws and regulations that require compliance with certain requirements, supply permits, licenses, certificates and other required documents. Failure to do so could be very costly and sometimes can be disastrous for your business.
5. Contracts with web designers, artists, editors , authors of web content
Online business usually requires entering into an agreement with web designers, programmers and other professionals. Those contracts must provide clearness in regard to the copyrights and other related rights upon the website and the created content. “Exclusive right” and “Entitled to use” mean different scope of rights. Both parties must realize their practical meaning before contract signing.
Specific legal questions described above do not exhaust the scope of legal issues and cases which Internet entrepreneurs and professionals of the digital ecosystem may face in the development of online business projects.