There’s no denying that online business owners face more stringent regulations and rules than their traditional counterparts. However, these regulations and rules are necessary for the protection of consumers. After all, online business should be held accountable for the information it provides customers with. After all, one wouldn’t want a supplier selling a product to the general public and then continue to evade paying taxes on the profits. In fact, online business should also adhere to similar laws and regulations just like traditional companies with physical locations do.
In fact, online business must follow almost exactly the same legal regulations as traditional companies with physical addresses. License and permit fees are meant to protect workers and consumers. However, in the eyes according to experts, online business’ compliance is not entirely possible due to the difference in business models. Online marketplaces do not have physical storefronts like traditional brick and mortar stores do. Therefore, online sellers do not need to comply with various employment and other employment related legislation. On the other hand, online sellers do have certain restrictions. For example, online vendors cannot accept credit card payments.
Despite the absence of major legislation and restrictive legislation, online business still has certain obligations to adhere to. For example, online vendors have to conduct online business according to accepted online store standards. Also, online sellers have to conduct certain record keeping and accounting procedures as required by law.
There are many online businesses that are able to operate and flourish even though they don’t have any form of legal requirements. However, even online businesses that do meet some legal requirements encounter several challenges in terms of complying with these requirements. Lack of knowledge and understanding of these legal requirements often poses as a barrier to entry into the business. To avoid being a victim of these challenges, online entrepreneurs should consider hiring a professional commercial law solicitor.
The solicitor would help online businesses understand whether their business is permitted or required to sell online using their product or service. Moreover, online entrepreneurs can also learn the relevant laws that apply in their area. It’s important to note that business license applications vary from place to place and state to state. Therefore, a professional commercial law solicitor can assist an online business owner make the right choices and decision regarding business license applications.
A professional commercial law solicitor can also help online business owners understand whether they have to pay any sales or use tax (which is commonly referred to as sales tax). Solicitor’s advice can be very helpful for online business owners who have questions about various aspects of sales and use tax. Specifically, they can assist the business owners in figuring out if the use of a particular item constitutes sales or use tax, and can also review zoning regulations for a business to determine whether it requires zoning permits. In addition, online entrepreneurs may need to determine whether they need to obtain permits to build on their land (a “Zoning Application”) before they can begin construction. Indeed, even after a business owner has decided on zoning requirements for his or her location, obtaining a Building permit can be a hassle. Professional commercial lawyers can help.
Online entrepreneurs may also face challenges if they wish to conduct business from their home, such as in home daycare services, home repair, online tutoring, and other work-at-home opportunities. Although there are no zoning restrictions in many states (which is good news for home-based business owners), homeowners may need to register their home with the local government (sometimes called a home address or home registration). In addition to dealing with local government agencies, online business entrepreneurs will likely need to consult with their accountant or tax preparer, as well as the local home-use zoning restrictions association.