Reprint Right's | Cyber Law Guide     

How To Protect Yourself And Your Customer

You need to know how and why it's important for you to protect both yourself and your customer in your business.

If you are a ‘netpreneur – if you have managed to build and continue to operate a successful business in cyberspace – you’ve come to appreciate just how much easier Internet commerce is.

Many of the traditional issues faced by small businesspeople – such as setting up an actual storefront and having to pay rent or a mortgage on the building, having to have liability insurance, finding storage space for merchandise (if applicable), not to mention having to deal with municipal codes and zoning laws, licensing, and more – are not applicable in cyberspace. An internet business can be operated right from a spare bedroom in your house, and if you’re actually dealing in tangible goods, you may never have to store or even see them as successful online auctioneers will attest.

An internet business faces many of the same tax and liability issues as a brick-and-mortar business, however. And unless you’ve been on a desert island for the past twenty years, you’ve probably come to realize that the business law in the U.S. tremendously favors corporate interests, providing them with rights, privileges and protections that are simply no longer available to individuals and the mythical “little guy” (by which we mean the “Sole Proprietor” – read on).

The reason goes back to a little-known amendment inserted by a law clerk on a case dating back to 1888. In this case, Santa Clara Co. vs. Southern Pacific Railroad, a law clerk wrote his own words into the judge’s opinion that essentially gave corporations the same rights under the 14th Amendment of the Constitution as natural human beings. The 14th Amendment states:

“All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the state wherein they reside. No state shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any state deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.”

Since then – and especially over the past twenty-five years – large corporations have used this status to get involved in the political process, influencing lawmakers to pass legislation in their favor that have allowed them to grow tremendously in size and power.

Because of various abuses and the healthy, traditional American fear and distrust of any person or institution grown too large and powerful, recent years have seen the beginning of a backlash against corporate power and the doctrine of “corporate personhood.” This has in turn led to some strange perceptions among many that corporations are somehow evil and destructive to democracy.

The fact is, a corporation, in and of itself, is neither good nor evil. It is simply a tool – a “legal fiction” that allows entrepreneurs to incur some risk without danger of losing everything they own. While it may be true that these laws have been misinterpreted, twisted and abused by many powerful, wealthy groups of men (and the occasional woman), these same laws can be used to your advantage when it comes to protecting yourself and your assets. These laws don’t care whether yours is a multi-billion dollar operation or consists of just one person. Your small, home-based Internet business can enjoy the same protections as Bechtel or Halliburton – and having an “LLC” or “Inc.” after your name can add a great deal of credibility as well as open the doors to the same types of opportunities! Best of all, you will enjoy the same protections and tax advantages.

It's very important that you and your customers are safe so make sure you take caution when setting up your business and work with a good Law professional.
 

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