Example(s) of Dot Com Liability Please

[Chris Meyer]

I am starting a dot.com company. I live in WA State. I'm guessing I will need to put all things into motion as if I were starting any other kind of buisness, i.e. Business license, EIN # etc. Is this correct?

This compay will be a service that provides bulk email services to a target group - this will be a free service.

I will make money through an e-mall and advertising.

To help me understand the kind of insurance I may need, can you give me an example of a potential liability problem I might run into where the service I provide is free and my income is based on folks wanting to advertise with me?

Thank you for your time.

Chris

 

[Tracey]

You'll have to file a UBI application and register a business name. Cost $20 a couple years ago.

The main exposures I see are: anti-spam laws (WA has some draconian anti-spam laws that may or may not be enforceable.), the contents of the emails (if you censor them), and clogging up bandwidth. You also have to be able to deliver the service you promise.

Who's gonna advertise on your site? Few people I know go to sites that advertise bulk emailing services. Probably better to charge for the service.

PS: Don't you dare send me anything!

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.

[This message has been edited by Tracey (edited June 01, 2000).]