How to Protect Your Online Business

by Guest Author on February 8, 2017

in Articles, Guest Posts

Aren’t we all thankful to the inventors of the internet? As it turns out, entrepreneurs are the happiest lot. The internet has been their biggest game changer. Small and large business ventures compete with each other on one scale and this couldn’t be a better business opportunity. There is one big challenge; the laws and the legal risks in online businesses. To maneuver the challenges and to make even bigger profits, here are the legal tips to protect your online business:

Determine the type of business entity

Business entities create a shield between personal and business assets. Selection of the kind of entity for an online business is complicated and you need a professional. Find the best business attorney before clicking on any entity.
Your options are: C-corporation, S-corporation, or an LLC. Get a competent lawyer to guide you. This prevents mistakes that lead to expensive lawsuits in future.

Checking the box

The terms and conditions section of every online property acts as a contract between your online business and your users. From most debates, it is clear that users aren’t bound with these rules. They do not even read them – haven’t you seen how impossible they are to read?
To simplify these agreements, you are required to publish simpler sets of terms. They must be easily understandable by visitors.

DMCA Compliance

This is important and every business attorney dealing in intellectual property lawadvises you to ensure that your online business complies with the DMCA (Digital Millenium Copyright Act). As highlighted by the, the DMCA act protects online companies from copyright infringement claims. The claims often arise when you use content posted by other users. Seek DMCA’s help for user generated content posted on your site.


More reasons for an intellectual property lawyer’s help. You need to include a mandatory arbitration clause on your site. With an arbitration clause in the terms and conditions section, you will be able to win a case favorably. Otherwise, your company will be slapped with a hefty fine.

Class action waiver

The terms and conditions of service are prepared to protect your online business fromliability.Yourbusiness needs a class action waiver to prevent users from teaming up to sue your business.

A class action waiver ensures that every user or visitor pursues their claim against your company individually. This kills the motivation to sue you. You know what they say; there is power in the masses. This law saves your business.

Beefup on cyber security

Cyber security is the biggest problem faced by online businesses. Your online business is vulnerable to hackers who can access your client files, leaking information or committing fraud. If the court determines that your online security is lax, you will be charged and the fines are always hefty. Protect your business and your clients by installing software and virus protection.

Encryption of sensitive information and backups will save you too.

Hire a professional lawyer

Many other laws governing online businesses and copyright infringement lawsuits are better handled by a professional. Don’t lose clients, your assets, and your business when you can be protected by a lawyer.

In conclusion, insurance, mindful communication, separation of legal entity, and an umbrella policy will protect your company. Get a professional to guide you.

Gust article written by: David Wicks is a business litigation attorney. He has been working in the legal field for 10 years now. Check out for more information on how to protect your online business.


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