Written by: Richard Fong
Published on October 1, 2021
Published on October 1, 2021
Whether you are an independent venture, a startup, or a rapidly growing mid-market organization, your web-based activities are most likely governed by corporate, copyright, and contract laws. You must also follow laws governing customer satisfaction and corporate administration.
Your eCommerce business, like all other online and retail ventures, must follow general corporate laws as well as local and international laws that are relevant to the business. Furthermore, you should agree to advanced explicit arrangements concerning web availability, information security, and any type of electronic payment handling that may be appropriate for your online store.
Sales tax is a small percentage of a sale that an online retailer adds to that sale. Most states permit local governments, such as cities, counties, and special taxing districts, to levy a sales tax.
Speak with a tax professional or local tax authorities to ensure that you understand the specific circumstances that may affect your product as well as provide insight into how you should charge tax for the location of your business.
Payment gateways are essential for processing customer payments securely. A breach of payment data can result in a significant regulatory fine. Not to mention the indirect losses caused by a deterioration in brand image.
Breaches are very common, so you must exercise caution when selecting a payment processor. DCI-PSS-compliant solutions, HTTPS connections (SSL certificates) for all payment operations, and integrated security and anti-fraud protection should be prioritized. You may also opt for a merchant account to keep payments secure.
Trademarks, patents, and copyrights are all considered legally protected intellectual property. If you take the necessary steps to protect your intellectual property, you may be able to obtain legal protections that prevent other brands from using it without your permission.
Similarly, you cannot use someone else's intellectual property unless you have obtained the necessary permissions. To avoid legal issues, for example, if you want to sell items with popular characters or logos on them, you'll need to obtain the necessary permissions.
Depending on the products you choose to sell, you may need a business license. As a general rule, if you own a brick-and-mortar business in the United States, you must have a valid seller's permit.
For online businesses, the requirements are slightly different. You do not need a seller's permit to conduct business online unless you are selling products or services in a regulated industry such as health care. However, this may not be the case in your state or industry, so make sure to take a look at the applicable laws.
Understanding the implications of online business laws is critical to the success and overall health of your company. It also aids in the protection of your customers. When you have completed all of the legal requirements for starting your eCommerce business, you can confidently launch your site!
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