Every five in eight companies are operating online, conducting e-commerce business. There are various legal issues associated with eCommerce businesses as well.
Among these are your approaches to marketing, sales and distributions. Moreover, there are specific legal issues unique to e-business. If so, these unique e-business legal issues should be of concern to you as well.
Business Structure E-businesses can be legally incorporated in many different ways, just as physical businesses can. The business can be a sole proprietorship, a partnership, a limited liability partnership, a limited liability corporation, or an S or C corporation. Each of these business types has a different legal and tax consequence.
One of the first tasks of an e-business, therefore, is to choose the corporation structure that works best for you. Specific to e-business, you may wish to choose a structure that makes the business legally and financially separate from you, the owner.
E-businesses are arguably subject to a higher degree of financial vulnerability than traditional businesses. If you create the company as a separate entity, you will not personally be responsible if the company goes bankrupt or incurs unanticipated debt. However, businesses are free to change their structure after incorporation.
You may start as a sole proprietorship, because of the relative ease in doing so, and then change to a more advanced entity form in the future. Brand Identity The identity of your brand is extremely important on the Internet.
With so many companies and products readily available to consumers at the click of the mouse, your marketing and PR must stand out from amongst the competition. One of the first steps in doing this is to secure an appropriate domain name or web address.
Moreover, it must be a legal company name, one that has not been claimed by another firm. If you choose something too similar to a trademarked name or logo, you may find yourself in legal trouble. Protecting Your Trademark Trademark your logo and product name to protect its legal status.
Having a trademark allows you to protect your name and gives you the right to bring legal action against another company if they infringe on your identity. Generic names cannot be trademarked. The trick is to find a domain name that is individual enough to apply for legal protection but generic enough that customers can easily find it online.
Tax Implications While some jurisdictions traditionally allowed e-businesses to operate without paying sales tax, most states now have laws on taxes for Internet based sales.
In general, these laws are similar or identical to the laws on mail order sales. Even if you send a product outside the state or country, you may still be liable for tax. Failure to pay it could mean that the IRS files legal action against your company.Ethical, Legal, and Regulatory Issues in e-Business Free Essay, Term Paper and Book Report Part One E-Business Marketing Ethical, legal, and regulatory issues Ethical, legal, and regulatory issues transcend all industries, and business mediums.
Free business law papers, essays, and research papers. Issues In ECOMMERCE Law IT Essay.
Home; Support the development of e-commerce by enacting appropriate legislation to aid e-business. Certain issues are still left unresolved in this provision such as, what is the legal framework to ensure the entrenchment of the policy's provision?
To what magnitude do legal issues arise in e-commerce. Current Legal Topics. Research & Reports | Guide to Law Online | from central banks or government offices on the handling of bitcoins as well as any significant use of bitcoins in business transactions.
Some of the surveys provide additional information on related surveillance issues like the law on monitoring and intercepting.
If so, these unique e-business legal issues should be of concern to you as well. Business Structure. E-businesses can be legally incorporated in many different ways, just as physical businesses. The business exists at the desire of the owner and cannot be passed along to another person or entity in the event the owner cannot continue the business.
Liability – The total liability for debt or other obligations is the sole responsibility of the owner of a sole proprietorship.