{"id":181250,"date":"2023-05-23T15:11:18","date_gmt":"2023-05-23T14:11:18","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=181250"},"modified":"2024-05-29T07:48:56","modified_gmt":"2024-05-29T06:48:56","slug":"four-legal-obligations-for-your-online-business","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/ecommerce-online-business\/four-legal-obligations-for-your-online-business\/","title":{"rendered":"Four Legal Obligations to Consider Before Starting an Online Business"},"content":{"rendered":"\n\n\n\n\n<p><span style=\"font-weight: 400\">In recent years, the growth of online businesses has been nothing short of remarkable. The advent of eCommerce has opened up new opportunities for entrepreneurs to reach a global audience from their own homes. However, before diving into the world of online business, you should appreciate the legal obligations that come with it. This article highlights four crucial legal obligations to consider before starting an online business venture in the UK.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Business Registration and Structure<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">One of the primary legal obligations for any new business, including eCommerce enterprises, is registering with the appropriate authorities.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">If you plan to operate as a sole trader in the UK, the law does not obligate you to register with Companies House. However, the law expects you to register your business with <\/span><a href=\"https:\/\/www.gov.uk\/government\/organisations\/hm-revenue-customs\"><span style=\"font-weight: 400\">HM Revenue and Customs (HMRC)<\/span><\/a><span style=\"font-weight: 400\"> for tax purposes.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">If you intend to form a limited company or partnership, you must register it with <\/span><a href=\"https:\/\/www.gov.uk\/government\/organisations\/companies-house\"><span style=\"font-weight: 400\">Companies House<\/span><\/a><span style=\"font-weight: 400\">. The benefit of a limited company is that it is legally separate from you. Accordingly, your business\u2019s liabilities remain with the company rather than you. Registering your online business correctly will provide legal protection and establish credibility with potential customers.<\/span><\/p>\n\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/05\/19033006\/Screen-Shot-2023-05-19-at-12.29.56-pm.png\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">UK Website Terms of Use<\/div>\n            <div class=\"body-text\">\n                <p>If your business has a website, you will need to provide terms and conditions of usage for your website\u2019s users. These Website Terms of Use set out the rules for people using your website. <\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/legalvision.co.uk\/documents\/website-terms-of-use\/\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Compliance with Consumer Protection Laws<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">When operating an online business in the UK, it is vital to understand and comply with consumer protection laws. The Consumer Rights Act 2015 establishes the rights of consumers and outlines the obligations of businesses.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">As an online business owner, you must ensure that your website displays accurate product and service information, including:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">pricing;&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">delivery times; and&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">refund policies.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">Additionally, you must adhere to data protection laws, such as the General Data Protection Regulation (GDPR). This means obtaining consent from customers before collecting their personal information, ensuring secure data storage, and providing a clear privacy policy.<\/span><\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex 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The<\/span><a href=\"https:\/\/www.gov.uk\/government\/organisations\/intellectual-property-office\"> <span style=\"font-weight: 400\">UK Intellectual Property Office (IPO)<\/span><\/a><span style=\"font-weight: 400\"> is responsible for trademark registrations;<\/span><\/li>\n\n\n\n<li><b>Copyright Protection &#8211; <\/b><span style=\"font-weight: 400\">Copyright automatically protects original works such as website content, images, and videos.&nbsp; However, to assert your rights and enforce them against infringement, it is advisable to include a copyright notice on your website;<\/span><\/li>\n\n\n\n<li><b>Patents and Designs<\/b><span style=\"font-weight: 400\"> &#8211; Consider seeking patent or design protection if your online business involves inventions or unique designs.&nbsp; This will grant you exclusive rights to your inventions or creations, preventing others from reproducing or using them without permission.<\/span><\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Taxation and Financial Obligations<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Operating an online business requires careful attention to taxation and financial obligations. It is helpful to familiarise yourself with the following key aspects:<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><b>Value Added Tax (VAT)<\/b><span style=\"font-weight: 400\"> &#8211; Depending on your turnover, you may be required to register for VAT.&nbsp; If your taxable turnover exceeds the current threshold, you must register for VAT and charge it on applicable products or services.&nbsp; However, if your turnover is below the threshold, registering for VAT is optional but may still be beneficial for your business.<\/span><\/li>\n\n\n\n<li><b>Income Tax and National Insurance Contributions &#8211; <\/b><span style=\"font-weight: 400\">As a business owner, you must understand your obligations regarding income tax and National Insurance (NI) contributions. If you operate as a sole trader, you will be subject to income tax on your profits.&nbsp; If you have employees, you must also manage their National Insurance contributions.<\/span><\/li>\n\n\n\n<li><b>Business Expenses and Record-Keeping &#8211; <\/b><span style=\"font-weight: 400\">Accurate records of your online business income and expenses are crucial for tax purposes. You should maintain a <a href=\"https:\/\/legalvision.co.uk\/startups\/separate-bank-account\/\">separate bank account<\/a> for your business transactions and retain receipts and invoices to support your financial records. Familiarise yourself with the allowable deductions and expenses that can be claimed to minimise your tax liability.<\/span><\/li>\n\n\n\n<li><b>Employment Regulations &#8211; <\/b><span style=\"font-weight: 400\">If you plan to hire employees for your online company, you must comply with employment law. This includes providing employment contracts, adhering to minimum wage laws, safeguarding personal data and ensuring a safe working environment.<\/span><\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Starting an online business in the UK offers tremendous opportunities, but it also comes with legal obligations that should not be overlooked. By understanding and complying with these obligations, you can establish a strong foundation for your online enterprise and avoid potential legal issues.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Registering your business, complying with consumer protection laws, protecting your IP, and fulfilling your taxation and financial obligations are essential steps for a successful and legally compliant online business venture.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Many online business owners consult with an expert lawyer to ensure their company meets all necessary legal requirements and, by doing so, focus on growing their business and serving their customers whilst staying within legal boundaries.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">If you need legal assistance starting your eCommerce business, our experienced<\/span> <a href=\"https:\/\/legalvision.co.uk\/services\/ecommerce-online-business\/\"><span style=\"font-weight: 400\">e-commerce and online business lawyers<\/span><\/a><span style=\"font-weight: 400\"> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our<\/span> <a href=\"https:\/\/legalvision.co.uk\/membership\/\"><span style=\"font-weight: 400\">membership page<\/span><\/a><span style=\"font-weight: 400\">.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1686007478919\"><strong class=\"schema-faq-question\"><strong>Should my new company instruct a lawyer to assist with legal documents?<\/strong><\/strong> <p class=\"schema-faq-answer\">Many business owners instruct expert lawyers to ensure their online store achieves full legal compliance with UK law. The cost of breaking the law is often much higher than instructing a lawyer, so legal fees tend to be well spent.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1686007499949\"><strong class=\"schema-faq-question\"><strong>How often should I review my online business website?<\/strong><\/strong> <p class=\"schema-faq-answer\">Ensuring your eCommerce platform is up-to-date and legally compliant is an ongoing process and requires continuous monthly checks.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/181250\" \/>            <input value=\"https:\/\/legalvision.co.uk\/ecommerce-online-business\/four-legal-obligations-for-your-online-business\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"Four Legal Obligations to Consider Before Starting an Online Business\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In recent years, the growth of online businesses has been nothing short of remarkable. The advent of eCommerce has opened up new opportunities for entrepreneurs to reach a global audience from their own homes. However, before diving into the world of online business, you should appreciate the legal obligations that come with it. This article<a href=\"https:\/\/legalvision.co.uk\/ecommerce-online-business\/four-legal-obligations-for-your-online-business\/\">Continue reading <span class=\"sr-only\">&#8220;Four Legal Obligations to Consider Before Starting an Online Business&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13349,"featured_media":3222,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"3825,171768,178653,175924,171929,1410","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[34],"tags":[54,173,379,1371],"class_list":["post-181250","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ecommerce-online-business","tag-online-business","tag-startup-business","tag-ecommerce","tag-legal-obligations"],"acf":[],"yoast_head":"<!-- This site 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He has particular expertise in Commercial and Employment litigation, as well as data protection and privacy regulations. He is a qualified Solicitor in England and Wales and has a decade of legal experience, including advocacy within civil courts and Tribunals. Tom specialises in civil and employment litigation. He has extensive experience in advising employers and companies as to the requirements of employment law and data protection rules, as well as day-to-day advice on smooth running from a commercial perspective. Qualifications: Professional Skills Course - Law, University of Law; Legal Practice Course - Law, College of Law; Bachelor of Laws, University of Southampton.","sameAs":["https:\/\/www.linkedin.com\/in\/tom-sutherland-72b4509b\/"],"url":"https:\/\/legalvision.co.uk\/author\/thomassutherland\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/ecommerce-online-business\/four-legal-obligations-for-your-online-business\/#faq-question-1686007478919","name":"Should my new company instruct a lawyer to assist with legal documents?","acceptedAnswer":{"@type":"Answer","text":"Many business owners instruct expert lawyers to ensure their online store achieves full legal compliance with UK law. The cost of breaking the law is often much higher than instructing a lawyer, so legal fees tend to be well spent.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/ecommerce-online-business\/four-legal-obligations-for-your-online-business\/#faq-question-1686007499949","name":"How often should I review my online business website?","acceptedAnswer":{"@type":"Answer","text":"Ensuring your eCommerce platform is up-to-date and legally compliant is an ongoing process and requires continuous monthly checks.","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/181250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/13349"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=181250"}],"version-history":[{"count":4,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/181250\/revisions"}],"predecessor-version":[{"id":188549,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/181250\/revisions\/188549"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/3222"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=181250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=181250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=181250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}