It’s estimated that over 25% of all new businesses will be strictly online. Fashion and Beauty retailers make up the largest demographic of new online businesses. And while having a strictly online company can alleviate some legal business concerns such as zoning there are still many legal ramifications of owning an online beauty business. Here’s a list of legal issues to take into consideration before starting your beauty company.
The business structure: things like whether the business is a sole proprietorship or a partnership need to be established and solidified via legal paperwork. This way liability and ownership disputes will be avoided. Other financial considerations, particularly that of the text structure of your business need to be legally established as well.
Non-disclosure agreements: the more confidential information your company has, the more important it is to have all employees, vendors, sellers, partners, employees etc. sign non-disclosure agreements. This is especially important for online beauty businesses that want to keep the formulas for their beauty products are confidential.
Business licensing and permits: with online beauty companies offering advice and other services to their clients it’s important the higher licensed beauty professionals because not doing so we’ll have an adverse effect on your customer service and maybe a liability risk.
Insurance: Small Business Insurance, liability insurance, workman’s compensation and short-term disability are all important for a business to have no matter their size. However, the size and scope of each of these policies should be discussed with a legal professional in order to custom make a policy that is right for your company.
Other legal issues to consider: trademarking both nationally and internationally, copywriting, intellectual property, vesting, hiring independent contractors vs. employees.
Now that you’re aware of the many legal issues you should consider before starting your online Beauty business, be sure to reach out to a business lawyer in order to safeguard your investment. In the meantime, if you’re looking for an example of a thriving online beauty business be sure to stop by ultabeauty.com.