Protect your e-commerce business

By: Raz Toor, Lawyer
Falcon Law PC 

Thinking of getting started in the e-commerce world or already have an established business in this area? One of the first words on your mind should be – legal! Yes, legal considerations are critical to having a successful start or growth to your e-commerce business.

Think Incorporation

Make sure to set up your business as a corporation. Selling online means you’ll have many customers, and many customers means greater liability. Protect your personal assets by doing business as a corporation. In addition, take advantage of the tax advantages afforded by corporations and the additional credibility of carrying on business as a corporation.

Your website needs a contract

You must be used to signing contracts when doing business in person, but why not protect your e-commerce business by drafting a terms of use for your website? It’s critical to have a terms of use for your website, which serves as the contract between you and the users of your website. If a dispute ever arises about the quality of your product, the timing of your shipment, or the processing of a payment – you can always fall back on a well drafted terms of use to protect you.

Protect against third parties

Now that you’ve learned about terms of use, you cannot forget about contracts with third parties such as web developers who help you prepare your e-commerce website. We’ve all of heard of many start-ups and young companies striking it rich and those involved (or not really involved) in the early stages of the company claiming ownership or entitlement. To protect yourself against such claims to your business and the intellectual property of your business, establish sound contracts with third parties such as web developers. Don’t forget to have them assign and transfer all intellectual property rights to you, in other words, since they have authored your website, you will need to ensure that ownership of this website has transferred over to you.

Even better, we’d suggest that you get a qualified team of lawyers on your side to assist you with the launch and growth of your e-commerce business. We at Falcon Law PC are well versed in the e-commerce world and can provide your business the legal support it needs. Contact us at for more information. 

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