Legal Lessons – 5 Legal Issues to Consider Before Launching an Online Business

Legal Lessons – 5 Legal Issues to Consider Before Launching an Online Business

Online sales shot up during the pandemic and have only continued to climb since. This makes eCommerce an excellent opportunity for anyone looking to take charge of their financial future. However, it’s not something you should rush into without thought. With customers spread across different jurisdictions governed by their own laws and consumer protections, it’s crucial to do some legal legwork before leaping into the world of eCommerce. 

The following five points should give you an idea of what to expect when launching your online business. Legal lessons – 5 legal issues to consider before launching an online business.

1. Online businesses need local support

As an eCommerce retailer, you may deliver products to people all over Australia, perhaps even the world. However, it’s still a good idea to work with a business lawyer in your local area. Whether you connect with the best lawyers Albury-Wodonga has to offer, the top legal firm in Perth, or the finest attorney in Far North Queensland, a local legal representative will help you ensure you’re abiding by all the relevant laws and regulations. If you’re dealing with customers in other states or countries, they’ll also help you navigate any legal complexities that arise.  

2. You’ll probably need a privacy policy

If you’re handling sensitive customer data, it’s crucial to have a privacy policy written up and published on your website. This legal document outlines what you can and cannot do with any information you collect from visitors to your website. 

Your business lawyer will be able to help you construct an appropriate privacy policy. Once it’s written and published on your site, you’re legally bound to follow it. If you need to make any changes to it, you’ll need to contact all parties affected by the change so they have the opportunity to actively accept the updates.

3. Terms and conditions are crucial

Few people read them, but that doesn’t mean you can get away without them. Your T&Cs are your biggest protection from legal dramas, so it’s crucial to work with a professional to ensure they’re comprehensive and written in unambiguous language. 

Make sure you include your governing state in the T&Cs as this will determine the laws your business must abide by and the location in which any legal action can take place. Fail to record your controlling state law, and anyone wishing to sue you may be able to do so in their own state. As you can imagine, this will make things far more difficult and unpleasant for you. 

4. Separate your business and personal finances

There are endless benefits to separating your business and personal accounts. Tax time will be far easier, you’ll have a clearer picture of your financial position, you’ll likely be able to claim more deductions, and you’ll be able to build a credit history for your business. These are just a few of the benefits you’ll enjoy, so be sure to contact your bank and enquire about the best way to manage your business finances. 

5. Insist on written contracts and agreements

This is yet another reason why it’s important to have a local business lawyer on your side from the get-go. From web hosting to eCommerce order processing, online businesses require all sorts of professional relationships. If you want everything to run smoothly, it’s crucial to have the terms of the relationship set down in a legally binding contract. 

Keep these factors in mind when planning the launch of your online business, and you should be able to avoid the legal pitfalls and steer your fledgling enterprise toward success.