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You can start a small online store as a sole proprietor. However, registering an LLC may provide you with better liability protection from legal issues, depending on the laws of the jurisdiction in which you form the LLC and in which your business operates. In addition, a business entity is often required to apply for a reseller certificate – a document that many suppliers and wholesalers will require to trade with you. You`re welcome! Always happy to help you here if you need it, but we can help you even more in the Bigcommerce Community Forum. Not only will you find more BigCommerce employees, but you`ll also be able to talk to our partners and other experienced customers who have been there before. Most ecommerce platforms are reservoirs of sensitive customer information, often collected via contact forms, customer registration, and during the checkout process. In many countries, e-commerce websites are required to protect customer data. Although the regulations are drafted to include strict guidelines, another objective is to extend electronic commerce throughout the Common Market. Following the Commission`s guidelines is essential for best practice on the continent. E-commerce accounts for more than three-quarters of total retail growth.

The company also predicts that global sales will reach $3.9 trillion in 2020. You may not need a special business license, other than VAT registration, for your online store unless you sell certain types of products such as medical devices, health products, alcohol, fresh produce, and other types of regulated products. However, it is best to check the requirements with a local authority or lawyer. Also, check your country`s rules and regulations before selling age-restricted products through an ecommerce store. Just because your customers don`t walk through a physical store doesn`t mean your ecommerce platform is above the law. Take the time to ensure that your online store complies with established regulations in all jurisdictions where your products or services are sold to potential customers. Business insurance isn`t always required by law for ecommerce store owners. If you operate as a registered business such as a limited liability company (LLC), your personal assets may already be protected. However, you should consult legal counsel to ensure that this is correct, as laws may vary depending on where you operate or where your business was founded.

While this applies to your situation, insuring your business can also be beneficial: business insurance can seem expensive for new business owners. But it can save you more money if things go wrong legally. For entrepreneurs running ecommerce startups, violations of the law come in many forms, with each violation posing a different challenge to the business. Therefore, it is crucial for any ecommerce business to stay one step ahead when it comes to individual legal responsibilities. The most important framework behind the policy is to build trust and transparency for customers who shop online. Every company operating in an EU country should be informed of the latest interpretations of the Directive and any additional impact of doing business in certain EU Member States. The European Commission continues to revise the rules to adapt them to changing business needs. Here`s a quick tax reminder of Tracey Wallace`s e-commerce tax manual.

Similarly, you may not use the intellectual property of others without appropriate consent. For example, if you want to sell T-shirts with Star Wars characters, you need to get the appropriate consents to avoid legal problems. In addition to protecting customer information on your website, it`s important to dive into the inner workings of your ecommerce website to prevent fraud. A preventative measure to keep your systems running smoothly is application performance management (APM). According to Gartner, APM is a software suite that helps online retailers identify and patch vulnerabilities in their system so they don`t run into problems with consumers and possibly with the law. The above may seem like a lot. But this knowledge and investment in professional legal or tax advice will make your business future-proof against legal disasters and costly operational breakdowns! To run a successful ecommerce business, you need to understand your legal obligations in each jurisdiction in which you operate. For ecommerce owners, you may be subject to several different regulations, all of which you must follow.

Consult an attorney to ensure that you are doing your best to comply with all applicable laws and regulations. Ultimately, protecting the success of your business will be crucial. You can also consider copyright protection for your ecommerce website. Some of the applicable copyright laws you need to be aware of: Almost all businesses today use online or mobile websites and/or social networking sites to promote their business, sell goods or services, conduct business transactions, and connect and communicate with customers or other businesses. While these “e-commerce businesses” face a variety of the same legal issues as traditional brick-and-mortar businesses, they also face other challenges that are unique to conducting business operations and transactions in an electronic environment. The range of legal issues that need to be considered and managed continues to grow, and ignoring this reality could result in financial liability, regulatory sanctions, or unauthorized use of the company`s intellectual property.