E-commerce from Scratch: 10 Legal Tips to Keep in Mind

In today’s era of digitalization, launhttp://Trademarks.Selectching your own business—especially in e-commerce—may seem deceptively easy. And it can be, if you have the right knowledge or a partner to guide you. However, there are two key things to remember: first, competition in this field is fierce; second, it’s easy to get lost in the forest of legal requirements. Legal foundations are essential for building a successful and compliant business.ExpertLab founder and legal expert Agnė Daukšienė shares a 10-step guide to the legal considerations when starting an e-commerce business—from choosing a legal structure to ensuring compliance with data protection regulations.

1. Business Structure. Choose the appropriate legal form for your e-commerce business—options include sole proprietorship, small partnership, or private limited liability company. Each form carries different tax and regulatory implications, as well as varying degrees of liability. Consult legal professionals to determine the best structure for your business model and growth plans.

2. Business Name & Trademarks. Select a unique and memorable name, and ensure its availability. Conduct thorough trademark research to avoid infringing existing trademarks. Registering your business name and logo as trademarks provides legal protection and helps avoid future disputes.

3. Compliance with E-commerce Laws. Familiarize yourself with e-commerce laws governing online transactions, including consumer protection, data privacy, and online commerce regulations. Compliance builds trust with customers and helps avoid legal complications.

4. Terms of Service & Privacy Policy. Develop clear Terms of Service and a comprehensive Privacy Policy for your website. These documents should explain how users can interact with your site and how customer data is collected, stored, and used. Ensure users consent to these terms before any transactions.

5. PCI DSS Compliance. If your e-commerce business processes credit card payments, you must comply with PCI DSS standards. These regulations ensure secure handling of customers' sensitive payment information. Use secure payment gateways and follow PCI DSS protocols to protect both your business and your customers.

6. Sales Tax Compliance. Understand your sales tax obligations in each jurisdiction where you operate. Tax rules vary and non-compliance can lead to legal issues. Consider using e-commerce platforms with integrated tax tools or consulting tax professionals.

7. Intellectual Property Protection. Safeguard your IP—including product design, branding elements, and original content. If needed, register trademarks, patents, or copyrights to protect your business against infringement and establish legal ownership of your assets.

8. International Law Compliance. If you sell internationally, be aware of and comply with the laws in your target countries. This includes data protection regulations, consumer rights, and customs or import/export laws.

9. Contracts & Agreements. When working with suppliers, vendors, or partners, draft clear contracts outlining responsibilities, expectations, and terms. Well-prepared agreements help mitigate disputes and provide legal remedies when issues arise.

10. Ongoing Compliance Monitoring. Laws and regulations evolve. Stay informed of changes that may impact your e-commerce operations. Regularly review and update your legal documentation to maintain compliance and peace of mind.

By integrating legal considerations from the start, you’ll build a strong foundation for your e-commerce business. Consulting legal experts who specialize in e-commerce can offer valuable insights and advice to help your business grow successfully—and lawfully—within the digital marketplace.