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Starting An Internet Business: Understanding Common Legal Questions

Starting an internet business is much easier now than it was ten years ago. Now it is possible to use open source software, outsource software development overseas, have your website hosted in the cloud, and register a domain for $10. However, there is also more to consider when youre starting an internet business. Here are answers to many of the most frequently asked legal questions by entrepreneurs getting started online.

Does My Designer Or Agency Own My Website?

When you pay to have your website designed you should double-check with your agency whether or not you will own copyright to the work. This should be outlined in your contract. If you do not discuss this with your designer they are unlikely to claim that they own copyright at a later stage, but they would certainly be entitled to. In the UK the creator of the copyright will own all of the work unless it was completed as a result of a work-for-hire agreement, or you have a contract with the designer that says otherwise. The same also applies if you use the services of a software developer, a writer, or even, potentially, a translator.

In this instance where you may have a dispute with your designer, its best that they dont have the ability to take down your website. Thats why you should control access to where the domain name points and you should also make sure they are not given unregulated access to the server once things are up and running. Try not to become too reliant on one supplier  its an easy mistake to make. You are probably best to use a separate provider for domain names, hosting and web design.

What Legal Entity Is Best For Me?

When youre starting an internet business youll be able to decide between starting a limited company and starting out as a sole trader. If you are going into business with a partner, you will have to become a partnership rather than a sole trader. As a partnership or a sole trader you will not have to submit paperwork to Companies House, however you will have full liability for anything that goes on with the business. As a limited company you will have more reporting requirements; however you will not be liable should your business get into debt. In the long run, should your internet business be successful, you will most likely have to incorporate your business and become a limited company.

How Do I Make UK Law Apply In All Of My Contracts?

It is most likely the case that you would like UK law to apply to all transactions, and for any court proceedings to take place in the UK. Thats why you have customers accept terms and conditions, and you should also have terms of use and a privacy policy which say the same thing. Its important to mention that UK law will be used, and that any legal proceedings will take place in the English courts. Its possible for UK law to be judged in an international court, or for an international law to be judged in the UK. This is particularly relevant for an internet business.

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