Legal Question in Technology Law in New York

Re: Question about license and other issues for internet based business

You may certainly take the business form of sole proprietor without needing a license. You will need to check with your county clerk and/or the Dept. of State to make sure any business name you select is not already being used by another entity.

However, you may want to contact an attorney to discuss if a sole proprietorhip is the best business form. For example, it may be more advantageous to be an LLC or an S Corporation for tax and liability purposes.

Finally, you may also need to consult with an attorney regarding policies that will need to be posted on your e-business site (depending upon the type of information that you will be collecting).

If I can help, please contact me as my areas of concentrations include business formation and intellectual properties including trademark, copyright and Internet law.

Sarah Scova Klug, Esq.

The Law Office Office of Sarah Scova Klug PLLC

845-471-8106

Re: Question about license and other issues for internet based business

It's best to use an entity (corporation, limited liability company, etc.) to separate yourself from the business for both liability and tax purposes. As far as legal agreements are concerned, it sounds as if you need a few different agreements. You need a services agreement with your users that requires them to pay you when they receive funds. You also should have a services agreement with the company posting the project. These two agreements should clearly state when and how your payment is received and put the obligation on both parties to pay. You should take care to include jurisdictional provisions as well - it's extremely difficult to chase companies for money that is owed. Check out http://www.gussis.com/ for my article on Web Development Agreements - it has a lot of information relevant to your agreements.

Re: Question about license and other issues for internet based business

To be a sole proprietor you do not need any license or paperwork to start, unless you plan to do business under a name other than your own name, in which case you are required to file a document stating you are "doing business as" (DBA) another name. As to your other question, although it is possible to write the documents for your internet business and website by yourself, and although the documents would be 'legal', it is advised that you have an attorney review your drafts and provide you with complete documents to be as protected as possible. You don't have to guess which parts of your business should be reviewed by an attorney -- the attorney will advise you as to that. Compare attorneys' fees, attitudes, and services, and choose a lawyer you feel comfortable with; it is always better to 'do it right the first time'. Good luck!